Chancellor Friedrich Merz and two federal ministries signed a joint declaration of intent with Nvidia in Berlin to develop 'physical' AI models. The collaboration also extends to the Industry 4.0 platform, with the aim of bringing AI into widespread use across German industry. Jensen Huang also announced planned investments in four German startups. No amounts were disclosed.

What it means: Germany is trying to turn its industrial edge into an AI edge. Its factory lines, machinery and Mittelstand firms hold huge amounts of data that are barely used today. The deal with Nvidia brings compute and simulation tools for robotics, autonomous vehicles and digital twins. A declaration of intent is not a binding investment, though, and the lack of amounts and timelines means the substance will be judged on delivery. There is also the sovereignty question: a national programme built around one American supplier will be hotly debated in a Europe trying to reduce its dependencies. For Greece, the move signals where European industrial policy is heading. Greek companies supplying German production chains, for example in car parts or automation software, are likely to face higher demands for digital data and system integration. Preparing now is a competitive advantage. Nvidia's interest in European startups also shows there is room for smaller specialised teams. The four companies named span robotics, hospital software, sound generation and satellites.

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