Nvidia CEO Urges German Manufacturers to Adopt AI, Saying Digital Tech Won't Replace Heavy Industry

FRANKFURT, Germany (AP) — Nvidia CEO Jensen Huang urged German carmakers and makers of industrial machines to start using artificial intelligence (AI) quickly. He said they should use their knowledge and large amounts of manufacturing data to rethink and improve Germany's struggling business model.

Huang's company makes powerful computer chips and software that companies such as Anthropic and OpenAI use to develop AI tools. He said digital technology would never replace manufacturing or the engineering work involved in making cars and robots, areas where Germany has a great deal of experience.

As Huang put it, "electrons will never replace atoms." In other words, digital technology cannot replace the physical world. But he said industry could benefit by making greater use of technology.

"The next wave of AI is physical. This is where AI interacts with the physical world: robotics, manufacturing, cars, heavy industry," Huang said on Monday during a discussion with German Chancellor Friedrich Merz at an investment conference in Berlin.

"And so AI can only augment your capability. It will not replace your capability. So take advantage of the technology."

Huang said Germany's manufacturing data and expertise were "your natural resource, it belongs to the nation." But he said the country needed to make better use of AI. "This industrial revolution is so mighty, so powerful. You don't have another chance," he said.

European leaders such as Merz see AI as a possible way to grow their economies. But they are also worried that Europe depends too much on U.S. technology companies in this field. Europe has large amounts of high-quality public-sector data and manufacturing data that computers can read and use. This could help AI systems learn and improve. Former European Central Bank chief Mario Draghi has pointed to this as an area where Europe could compete with the United States and China in AI.

Huang and Merz said AI could create opportunities for Germany's so-called "mittelstand," the hundreds of small and medium-sized companies that work in highly specialized industries.

Merz is trying to bring economic growth back to Germany after years of almost no growth following the pandemic. The country faces several economic problems. Energy prices are high after Russia's invasion of Ukraine led Germany to lose access to cheap Russian natural gas. China is also competing with Germany in industries such as carmaking, where German companies once led the market. Too much paperwork and too many approvals can delay projects for years. These problems have hurt an economy that relies heavily on exporting complex machines, including cars, trains, aircraft and factory equipment.

Europe is behind the United States in building data centers. These centers provide the huge amount of computing power needed to train AI systems. Europe also has concerns about keeping its companies' sensitive data safe. U.S. authorities can use subpoenas and criminal warrants to seek data stored on servers owned by U.S. companies. This can apply even when those servers are located in Europe, because they are still subject to U.S. law.

Huang appeared to respond to these concerns by urging Germany to bring in AI technology. But he added that "you should not export your culture, export your values, export your knowledge."

Huang said Germany should "take advantage of artificial intelligence. Let them codify, let them program, let them teach this artificial intelligence and keep it here in Germany, and let's re-engineer, the chancellor's words, Germany. This is your chance to do it."