Nvidia Launches Massive AI Expansion in Europe

Nvidia Sees a $50 Trillion Opportunity in Physical Artificial Intelligence

Jensen Huang, CEO of Nvidia, announced during his keynote presentation at Nvidia GTC Paris that his company's physical AI systems are poised to revolutionize industries including factories, transportation, and humanoid robots, representing a $50 trillion market opportunity. The company's automotive division is expected to reach $5 billion this year, with the potential to grow to $1 trillion once all cars become fully autonomous. The problem, however, is that today only 1% of vehicles on the road have L2+ autonomous driving capabilities, indicating an enormous market opportunity.

Rev Lebaredian, Nvidia's vice president of Omniverse and simulation technology, emphasized the growing need for physical artificial intelligence in factories and general robotics. "The era of physical AI is now, and demand for physical AI is only growing," he said. According to him, the world will face a shortage of 50 million workers over the next five years, making investment in physical artificial intelligence, particularly humanoid robotics, critical.

European Partnerships With More Than a Dozen AI Companies

Nvidia and AI search company Perplexity announced on Wednesday that they are working with more than a dozen AI companies in Europe and the Middle East to improve their technologies and distribute them to local businesses. Nvidia will collaborate with model developers in France, Germany, Italy, Poland, Spain, and Sweden to help create AI models in local languages that will become so-called reasoning models capable of performing more complex tasks.

Kari Briski, Nvidia's vice president of generative AI software for enterprises, said the company will help model developers generate new data—known as synthetic data—in local languages to improve their models. "We are doing a lot of synthetic data generation for these under-resourced languages and translating our reasoning data so they can train on it," Briski said in an interview on Tuesday. "Europe needs powerful models that reflect each nation's unique language and culture."

Once these local models have been trained, Perplexity will help distribute them across Europe, where businesses can run them in local data centers and use them to perform business tasks such as researching a new topic. Perplexity CEO Aravind Srinivas said Germany is already Perplexity's second-largest market by revenue. "This is the type of system we are moving toward in the future, where models essentially complete several hours of work from a single prompt," Srinivas said.

World's First Industrial AI Cloud to Be Built in Germany

Nvidia will build its first cloud platform for industrial artificial intelligence applications in Germany, CEO Jensen Huang announced at the VivaTech conference in Paris. This technology, which combines AI with robotics, will help automakers such as BMW and Mercedes-Benz with processes ranging from product design simulation to logistics management. In a series of Europe-focused announcements, Huang outlined plans to expand technology centers in seven countries, launch an Nvidia computing marketplace for European companies, help developers of AI models in several languages make them more advanced, and assist companies such as Novo Nordisk with drug discovery.

"In just two years, we will increase the amount of AI computing capacity in Europe tenfold," Huang said during a nearly two-hour presentation before a packed audience. "Europe has now recognized the importance of AI factories and the importance of AI infrastructure," he said, outlining plans for 20 AI factories—large-scale infrastructure designed for developing, training, and deploying AI models—in Europe.

This German AI cloud facility will feature 10,000 GPUs, including Nvidia DGX B200 and Nvidia RTX PRO servers, and will enable European industrial leaders to accelerate every manufacturing application, from design, engineering, and simulation to factory digital twins and robotics. Nvidia is also partnering with European AI champion Mistral to create AI computing infrastructure running on 18,000 of Nvidia's latest chips for European businesses.

Autonomous Driving and New Technologies

Nvidia announced in Paris that its fully integrated Drive AV software is now in full production, starting with the Mercedes Benz CLA sedan. This software can power products ranging from in-vehicle entertainment dashboards to AI-powered driving using automotive supercomputers. Upcoming partner launches in Europe include the new Volvo ES 90 sedan, which will be introduced within the next few months, and a fleet of next-generation JLR vehicles built on the fully integrated Nvidia Drive AV platform. JLR will launch next year as the result of a multi-year collaboration.

Nvidia is also releasing new AI tools and simulation technologies, including three new state-of-the-art Cosmos models to improve AV software performance under challenging conditions. Nvidia's Omniverse blueprint for AV simulation has been enhanced with a new feature called Neural Reconstruction, which makes the work of autonomous vehicle developers easier.

Collaboration With Key European Partners

France, Italy, Spain, and the United Kingdom are among the nations building domestic AI infrastructure with an ecosystem of technology and cloud providers, including Domyn, Mistral AI, Nebius, and Nscale, as well as telecommunications providers including Orange, Swisscom, Telefónica, and Telenor. Together, they will deploy more than 3,000 exaflops of Nvidia Blackwell systems for sovereign AI.

Nvidia announced a collaboration with Novo Nordisk to accelerate drug discovery efforts through innovative AI use cases. This work supports Novo Nordisk's agreement with DCAI to use the Gefion supercomputer for sovereign AI. Siemens and Nvidia also announced that they are expanding their partnership to accelerate the next era of industrial AI and digitalization and enable the factory of the future.

"Modern manufacturers face growing pressure to increase efficiency, improve quality, and quickly adapt to changing market demands," said Jensen Huang, founder and CEO of Nvidia. "Our partnership with Siemens brings Nvidia AI and accelerated computing to the world's leading enterprises and unlocks new opportunities for the next wave of industrial AI."

The Future of Quantum Computing and Physical AI

Beyond AI, Huang reiterated his view that quantum computing technology is at an inflection point. Quantum computing can solve problems that would require years of processing by Nvidia's most advanced AI systems. Quantum computing will solve "some interesting problems" in the coming years, Huang added. The CEO made similar comments in March at Nvidia's annual software developer conference, when he spoke about the potential of quantum computing and partially walked back comments he had made in January, when he said useful quantum computers were 20 years away.

Jensen Huang is traveling around the world to emphasize the importance of AI adoption by businesses and the dangers of falling behind. In London on Monday, he said Britain lacks the computing infrastructure needed to harness the full potential of its AI research base. "Sovereign AI is an imperative—no company, industry, or nation can outsource its intelligence," Huang declared.