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 could use their large amount of manufacturing data and knowledge to rethink and improve Germany's struggling business model.

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 could use their large amount of manufacturing data and knowledge to rethink and improve Germany's struggling business model.

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

As Huang put it, “electrons will never replace atoms.” In other words, digital technology will not replace the physical things people make. But he said industries would benefit from using more 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. He was speaking with German Chancellor Friedrich Merz at an investment conference in Berlin.

“And so AI can only improve what you are able to do. It will not replace your abilities. So take advantage of the technology,” he said.

Huang said Germany's manufacturing data and knowledge were “your natural resource, it belongs to the nation,” but 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 about how much Europe depends on U.S. technology companies in this field. Europe has large amounts of high-quality data from public services and manufacturing that computers can read and use. This data could help develop AI. Former European Central Bank chief Mario Draghi has said this is 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.” This term refers to hundreds of small and medium-sized companies that work in highly specialized industrial fields.

Merz is trying to bring economic growth back to Germany after years when the economy barely grew following the pandemic. Several problems are holding it back. Energy prices are high because Germany lost access to cheap Russian natural gas after Russia invaded Ukraine. German companies also face growing competition from China in industries such as carmaking, where Germany was once a leader. Too much paperwork and the need for official permission can delay projects for years. These problems have hurt an economy that depends heavily on exporting complex products, including cars, trains, aircraft and factory equipment.

Europe has fallen behind the United States in building data centers. These centers provide the huge amount of computing power needed to train AI systems. Europe is also worried about protecting companies' private data. U.S. authorities can demand access to data on servers owned by U.S. companies through legal orders and criminal investigations. This can apply even when those servers are in Europe, because the companies must follow U.S. law.

Huang appeared to respond to these concerns by urging Germany to bring in AI technology while keeping its own identity and knowledge. “You should not export your culture, export your values, export your knowledge,” he said.

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.”