At GTC Paris, Nvidia unveiled sweeping plans to dominate physical AI—from autonomous vehicles to manufacturing robots—backed by new products, European partnerships, and the launch of the world’s first industrial AI cloud. (Source: Image by RR)

Jensen Huang Says Physical AI Will Fill Global Labor Shortage

At the Nvidia GTC Paris keynote, CEO Jensen Huang unveiled the company’s ambitious vision for “physical AI” as a transformative force across industries, estimating a $50 trillion opportunity spanning transportation, manufacturing and robotics. Nvidia’s automotive segment alone is projected to hit $5 billion this year, with the long-term potential reaching $1 trillion as autonomous vehicle adoption grows. Currently, only 1% of cars are Level 2+ capable, leaving vast room for growth. To support this evolution, Nvidia’s full-stack Drive AV software has entered full production, debuting in the Mercedes-Benz CLA sedan and forming the backbone of upcoming launches from Volvo and JLR.

Nvidia, as noted in venturebeat.com, is aggressively expanding into industrial AI. New partnerships with Siemens and Deutsche Telekom will deliver an industrial AI cloud in Germany, while the company also announced plans to open-source its Isaac Sim robotics simulation platform. Nvidia’s latest Cosmos models aim to improve performance in autonomous vehicle software under challenging conditions, and its Omniverse simulation platform now includes Neural Reconstruction to aid developers in creating more efficient, physically-grounded AI.

Nvidia emphasized the urgent need for physical AI, particularly in the face of an anticipated labor shortage of 50 million people over the next five years. Vice President Rev Lebaredian underscored the growing demand for humanoid robotics and AI-driven automation in factories. The company is helping European countries build sovereign AI infrastructure by deploying over 3,000 exaflops of its Blackwell systems through partnerships with cloud and telecom providers across France, the U.K., Italy, and Spain. Nvidia is also expanding its DGX Cloud Lepton platform, offering a global AI compute marketplace to foster innovation in agentic and physical AI applications.

Finally, Nvidia detailed strategic collaborations to accelerate enterprise and scientific AI. The company is working with Novo Nordisk and DCAI on drug discovery via the Gefion sovereign supercomputer, while strengthening its Siemens partnership to bring AI-powered digital transformation to the manufacturing sector. A major milestone will be the construction of the world’s first industrial AI cloud, based in Germany and powered by 10,000 Nvidia GPUs, which will serve as a cornerstone for Europe’s AI-driven manufacturing future.

read more at venturebeat.com