Germany plans to announce an agreement with Nvidia next week to help its industry make more use of AI, Handelsblatt reported.

The sources said the deal will be a big boost for AI in industry, and that other partners besides Nvidia will join. The German government has not commented publicly, and we have not independently confirmed the details.

Chancellor Friedrich Merz and Nvidia chief executive Jensen Huang are expected to present the agreement on Monday at the Invest in Germany summit in Berlin, and Nvidia has confirmed that Huang will be in the city next week.

The sums involved are large. The government is ready to spend several hundred million euros, according to Handelsblatt. The money may come from a fund set aside for research.

Most of that would pay for computing power on Deutsche Telekom’s AI cloud, while Nvidia would supply engineers and chips. The goal is to lay the groundwork for physical AI, the kind used to train robots and self-driving cars, and to build powerful AI models for industry.

About a dozen German companies want to take part, including Siemens, Audi, and image-generation startup Black Forest Labs, the paper reported.

The plan would build on existing ties between the two sides. Telekom and Nvidia opened an industrial AI cloud in Munich earlier this year, running on up to 10,000 Nvidia chips.

It also comes as Europe tries to build its own AI capacity and rely less on US technology. That effort has not always gone smoothly, with the EU’s AI gigafactory plan running into delays. Meanwhile, Nvidia has been pitching its own sovereign AI stack to governments.

Last month, Berlin said it still wants to build more AI capacity so Europe can rely more on its own tech.