> ## Content Index > Fetch the complete content index at: https://www.tao.media/llms.txt > Use this file to discover other available public pages before exploring further. # NVIDIA and Germany Agree to Develop Physical AI Models, With Four Startup Investments Planned - URL: https://www.tao.media/nvidia-and-germany-agree-to-develop-physical-ai-models-with-four-startup-investments-planned/ - Published: 2026-10-20T20:50:48.000Z - Updated: 2026-10-20T20:50:49.000Z - Description: The partnership aims to bring AI into German industry, alongside planned backing for robotics, healthcare, audio, and satellite companies. - Author: Tristan Hillerich - Tags: Nvidia, AI, News NVIDIA and Germany's federal government have agreed to work together on advanced AI models for physical AI, linking the chipmaker's technology with the country's manufacturing and engineering expertise. Separately, NVIDIA plans to invest in four German startups spanning robotics, hospital software, audio generation, and satellites. The Joint Declaration of Intent, signed at the Invest in Germany Summit in Berlin on Oct. 19, expands NVIDIA's cooperation with the federal government and Germany's Industry 4.0 Platform. The partners aim to make industrial AI more widely available across German businesses and help establish a European industrial AI ecosystem. NVIDIA CEO Jensen Huang and Chancellor Friedrich Merz discussed that agenda later at Kraftwerk, a former Berlin power station. Huang's [planned startup investments](https://x.com/nvidia/status/2112269224949485860?ref=tao.media) cover Agile Robots, Avelios Medical, Mirelo, and Reflex Aerospace, and form part of NVIDIA's nearly $10 billion commitment to support companies, universities, research institutions, and other organizations across Europe. ## Bringing Physical AI Into Industrial Work The [agreement with Germany](https://blogs.nvidia.com/blog/germany-wants-to-lead-the-world-in-industrial-ai-how-nvidia-will-help/?ref=tao.media) involves Merz, the Federal Ministry for Economic Affairs and Energy, and the Federal Ministry for Research, Technology and Space. Physical AI enables machines such as robots and autonomous vehicles to perceive their surroundings, plan actions, and interact with the physical world. These models must account for objects, movement, and the effects of an action in a particular environment. NVIDIA's existing [robotics simulation tools](https://www.nvidia.com/en-gb/use-cases/robotics-simulation/?ref=tao.media) illustrate how that development process works. Virtual replicas of facilities, known as digital twins, let developers train and test robots before deploying them. Synthetic data generated in those environments can supplement real-world observations, while changing scene conditions lets teams test a wider range of situations. Germany's Industry 4.0 Platform brings together representatives from government, industry, research, and trade associations. The declaration expands an existing collaboration with that network and links the initiative to both industrial users and researchers. ## Germany Looks to Its Mittelstand Merz emphasized small and medium-sized businesses, collectively known as the Mittelstand, as a source of industrial knowledge and data that could support AI adoption. His appeal extended beyond major manufacturers to machinery companies and automotive suppliers. "The biggest advantage we have in Germany is our so-called Mittelstand," Merz said. "Please open your doors for AI to make use of your data." ![Friedrich Merz quote](https://storage.ghost.io/c/78/0b/780ba906-b1a7-4bf0-873c-bdd5c32e5331/content/images/2026/10/Merzquote-1680x672.jpg) Friedrich Merz quote | [NVIDIA](https://blogs.nvidia.com/blog/germany-wants-to-lead-the-world-in-industrial-ai-how-nvidia-will-help/?ref=tao.media) That focus puts companies' accumulated production expertise at the center of the government's approach. Merz said Germany wants to become a leading location for integrating AI throughout industry, including manufacturers, machinery businesses, and automotive suppliers. Huang argued that Germany's manufacturing expertise and strength in mathematics and science would remain valuable as companies adopt AI. "That knowledge belongs to you," he said. "It cannot be replaced." He urged businesses to use AI as an additional instrument for their existing work. ![Jensen Huang quote](https://storage.ghost.io/c/78/0b/780ba906-b1a7-4bf0-873c-bdd5c32e5331/content/images/2026/10/JHHMerzquote-1680x672.jpg) Jensen Huang quote | [NVIDIA](https://blogs.nvidia.com/blog/germany-wants-to-lead-the-world-in-industrial-ai-how-nvidia-will-help/?ref=tao.media) ## Four Planned Investments Across German Technology The four companies Huang identified address different applications of AI and advanced engineering. - Agile Robots, based in Munich, develops AI-powered robotics, including robotic arms and its Agile ONE humanoid, for manufacturing, logistics, and healthcare. - Avelios Medical, also based in Munich, develops an AI-native hospital information system that is the core record for clinical and administrative workflows and brings AI into hospital operations. - Mirelo develops models that generate sound effects, speech, and music for video, with a focus on matching audio to on-screen visuals. - Reflex Aerospace, based in Berlin, designs and builds high-performance spacecraft and targets launch readiness in about 12 months rather than multiyear development cycles. ![NVIDIA event at Kraftwerk Berlin](https://storage.ghost.io/c/78/0b/780ba906-b1a7-4bf0-873c-bdd5c32e5331/content/images/2026/10/HVBJqDdW4AA0gHy.jpg) NVIDIA event at Kraftwerk Berlin | [NVIDIA](https://x.com/nvidia/status/2112269224949485860?ref=tao.media) These planned investments would add to NVIDIA's existing German portfolio, which includes workflow automation company n8n, robotics developer Neura Robotics, and image-model developer Black Forest Labs. Huang is scheduled to deliver the [GTC Berlin keynote](https://www.nvidia.com/en-eu/gtc/keynote/?nvid=nv-tblg-829835%20&ref=tao.media) on Oct. 21, from 11 a.m. to 1 p.m. CEST.