Germany and Nvidia sign agreement for joint work on physical-AI models

Germany is bringing Nvidia more closely into its effort to spread AI across manufacturing, with planned joint work on models for physical AI—AI for physical systems. A Joint Declaration of Intent signed on October 19, 2026, connects that research ambition with the government’s goal of wider industrial adoption, according to Nvidia.

A research initiative inside an industrial adoption effort

The signing took place as part of the Invest in Germany Summit. The signatories included Chancellor Friedrich Merz, the Federal Ministry for Economic Affairs and Energy, the Federal Ministry for Research, Technology and Space, and Nvidia.

Nvidia says the declaration formalizes and extends its existing collaboration with the federal government and Germany’s Industry 4.0 Platform. That platform brings together representatives from politics, industry, research and trade associations.

The government aims to combine German engineering and manufacturing expertise with AI technology and research, while building a modern industrial AI ecosystem in Europe. The declaration covers planned joint work, not a model release; Nvidia’s announcement gives no delivery timetable for the initiative.

Merz puts company data at the center

At Berlin’s Kraftwerk, a former power station, Merz and Nvidia chief executive Jensen Huang discussed applying AI to the country’s manufacturing and automotive strengths. Merz singled out the Mittelstand—Germany’s small and medium-sized businesses—as an advantage, urging business leaders in the audience to use the data their companies already hold.

Please open your doors for AI to make use of your data. This is a real secret and a real advantage for Germany to make use of all the data which is already available in our companies.

German Chancellor Friedrich Merz, addressing Mittelstand leaders

Merz said he was optimistic Germany could become one of the world’s leading countries in spreading AI across manufacturers, machinery businesses, automotive companies and their suppliers.

Huang argued that AI would amplify Germany’s existing manufacturing knowledge and its strengths in mathematics and science. He described the technology as a new instrument for companies to use, with their accumulated expertise remaining valuable.

Merz also proposed meeting Huang regularly, at least once a year, to assess Germany’s progress with AI and discuss its appeal as an investment location.