German government plans Nvidia partnership, Handelsblatt reports
Berlin's reported move would build on a €1 billion Nvidia and Deutsche Telekom project aimed at expanding Germany's AI computing power.
German Chancellor Friedrich Merz is preparing to deepen cooperation with Nvidia as his government seeks to accelerate AI adoption across industry, Handelsblatt reported Thursday, citing people familiar with the plans.
The initiative is expected to receive government investment worth hundreds of millions of euros and will focus on physical AI and industrial AI model development.
One objective is to develop capabilities for training robots and autonomous vehicles, while another is to build high-performance AI models for industrial use that can compete internationally, according to the report.
Nvidia’s chips and tailored software are expected to play a central role in the effort, given the company’s position in AI model training.
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In June 2025, the German government announced an “Industrial AI Cloud” after Merz met Nvidia CEO Jensen Huang in Berlin. The planned infrastructure would feature at least 10,000 GPUs, with Nvidia contributing hardware, software and expertise in collaboration with German industry.
The project moved forward in November 2025, when Deutsche Telekom and Nvidia launched the Industrial AI Cloud in Munich. T-Systems said it was developed with Nvidia and data-center operator Polarise, with about €1 billion invested in expanding the Munich site.