Germany's government signed a declaration of intent with Nvidia on Monday to advance AI models for industrial use, as Chancellor Friedrich Merz opened the Invest in Germany Summit in Berlin with Nvidia chief executive Jensen Huang, CNBC, the German public broadcaster ZDF and The Next Web reported.

Nvidia said in a blog post that Merz and two ministries had entered a joint plan with the company to develop AI that can run robots, machines and cars, known as physical AI, The Next Web reported. The economy ministry gave no further details of its memorandum with the chipmaker, The Next Web reported.

Nvidia also named four German startups as investment targets: Agile Robots, Avelios Medical, Mirelo and Reflex Aerospace, CNBC and The Next Web reported. The investments are part of Nvidia's nearly $10 billion commitment to companies, universities and research groups across Europe, CNBC reported. Nvidia did not disclose how much it would invest, CNBC reported.

"Please open your doors for AI to make use of your data," Merz said, urging small and medium-sized businesses to use the data they already hold, CNBC and The Next Web reported. He named manufacturing, machinery and the car industry as key sectors for AI, CNBC reported. "AI can only augment your capability, it will not replace your capability," Huang said, according to CNBC.

Siemens separately announced new AI tools developed with Nvidia at its factory in Erlangen, CNBC reported. Siemens said they could cut engineering work for preparing production by up to 85%, CNBC reported.

Merz opening the summit with Huang was above all a signal, ZDF reported (translated from German). About 200 international and German executives and investors were taking part in the two-day summit, ZDF reported, citing the chancellery. Merz is under pressure to boost growth as German carmakers and chemical companies face strong competition abroad, The Next Web reported.

The summit drew criticism from the Left party in parliament, ZDF reported. Lizzy Schubert, who sits on the finance committee for the party, warned that the government was ready to meet investors' sweeping demands without regard for the consequences, ZDF reported.

What we know: Germany and Nvidia signed an industrial AI agreement, and Nvidia named four German startups to back.
What we don't: How much Nvidia will invest in the startups, and what the agreement commits each side to do.