Germany to Sign AI Pact With Nvidia After Jensen Huang's Criticism

[Financial News] The German government is joining forces with Nvidia, a global leader in AI semiconductors, in a bold move to secure competitiveness in artificial intelligence (AI).
Foreign media outlets, including Euronews, reported on the 19th (local time) that an AI pact between Germany and Nvidia would be signed following recent remarks by Nvidia CEO Jensen Huang at a media briefing in London. Huang said, “Despite its outstanding potential and wealth of talent, Germany is falling behind in the AI race, mired in excessive hesitation and analysis,” and urged policymakers to act swiftly.
The German government has been pursuing close cooperation with Nvidia in response to concerns about the country’s weakening technological competitiveness. With German Chancellor Friedrich Merz and CEO Huang in attendance at the “Germany Investment Summit” in Berlin on the 20th, the government is set to officially announce the “Joint AI Pact” that day, aimed at accelerating the adoption of AI products across German industry.
The German government plans to allocate a budget of several hundred million euros to the project. Around 10 major companies representing Germany, including the startup Black Forest Labs, Siemens AG and Audi, will take part.
The partnership is being pursued under the “Sovereign Open-Source Foundation Model” initiative, which aims to develop powerful open-source AI systems. Government funding is expected to be used primarily to secure computing capacity in Deutsche Telekom AG’s “Industrial AI Cloud,” equipped with Nvidia’s latest “Blackwell” hardware. Through this large-scale investment, the German government aims to transform the country into a hub for innovation and technology development.
Meanwhile, CEOs of global companies, investors and senior government officials are expected to attend the “Germany Investment Summit,” where they will focus on discussing new investment plans in AI, energy and infrastructure, as well as ways to strengthen the German economy’s overall global competitiveness.
[email protected] Yoon Jae-jun Reporter