Nvidia CEO Jensen Huang, speaking at an investment conference in Berlin, urged German car and industrial equipment makers to adopt artificial intelligence (AI) faster. In his view, this would help reshape Germany's business model by building on its manufacturing expertise and large volumes of data.
Huang, whose company develops computer chips and software for building AI applications, noted that digital technology will not replace manufacturing and engineering, where Germany has extensive experience. He put it this way: "Electrons will never replace atoms." At the same time, industry will benefit if it uses the technology more actively.
"The next wave of AI is physical. This is the area where AI interacts with the real world: robotics, manufacturing, cars, heavy industry," Huang said in a conversation with German Chancellor Friedrich Merz. "AI can only expand your capabilities, but not replace them."
Huang called German data and manufacturing expertise a natural resource that belongs to the nation, but urged more active use of AI. According to him, this industrial revolution is so powerful that there will be no second chance.
European leaders, including Merz, see AI as a source of growth but are concerned about Europe's dependence on American technology companies. Europe has large volumes of high-quality machine-readable data (that is, data in a format that computers can easily process) from the public sector and industry. Former European Central Bank President Mario Draghi called this an opportunity for Europe to compete with the US and China in the field of AI.
Huang and Merz agreed that AI opens opportunities for the German Mittelstand - small and medium-sized companies in highly specialized industries.
Merz is trying to revive growth in Germany after near stagnation in the years since the pandemic. Among the obstacles are high energy prices after the abandonment of cheap Russian gas because of the invasion of Ukraine, competition from China in sectors such as the auto industry, where Germany once dominated, as well as excessive bureaucracy and permitting procedures that delay projects for years. All of this is holding back an economy heavily oriented toward exporting complex machinery.
Europe lags behind the US in building data centers that provide computing power for training AI. In addition, there are concerns about the security of confidential data of European companies: servers of American companies, even those located in Europe, fall under American legislation and may be subject to court requests and warrants.
Huang appeared to respond to these concerns by urging Germany to import AI technology, but added: "You should not export your culture, your values, your knowledge." He said Germany should take advantage of artificial intelligence, train it and keep it here in Germany, and then rebuild the country.