Chancellor Merz said in a speech at an investor event in Berlin on the 20th that Germany is prioritizing investment in areas including defense, semiconductors and artificial intelligence (AI).
He also set a goal of quadrupling the country’s AI computing capacity by 2030. On the same day, China established the state-owned National Data Group, which aims to support the development of the AI sector, state-run Xinhua News Agency reported.
Germany turns its attention to the “foundations” that power AI
When AI comes up, attention often turns to how smart conversational services are or to the latest versions of models. But in his speech, Chancellor Merz highlighted not those high-profile end products, but the computing capacity needed to power AI. His target is to quadruple it by 2030.
Computing capacity is the processing power of computers that supports the work needed to train and run AI. Like roads and power grids, it is not usually visible, but it determines the pace of entire industries. If the foundation is inadequate, the use of AI will hit a ceiling—not only for companies that build models, but also when manufacturers, healthcare providers and government agencies put AI to work. The chancellor’s remarks can be read as a sign that Germany sees AI not as the preserve of a handful of tech companies, but as a foundation of the country’s industrial competitiveness.
The chancellor said Germany is making targeted investments in areas including defense, semiconductors and AI to boost long-term productivity and economic self-reliance. The AI computing capacity target is one part of that broader effort.
The broader investment drive goes beyond AI
The speech was aimed at investors. “Our goal is to create the best possible business environment for you,” the chancellor said, urging investment in Germany, Europe’s largest economy. Representatives of energy company Vulcan Energy and defense firm Helsing were among those in attendance. Judging by the lineup, the event may have felt less like a pitch for AI alone and more like a showcase for industrial policy spanning energy and defense as well.
The chancellor cited accelerating growth, rising foreign direct investment and an increase in startup formation, saying the effects of the policies were already showing up in the economy. He also presented the “Made for Germany” initiative, under which German companies have pledged to invest more than 800 billion euros by 2028.
He also touched on European economic integration, noting that progress would make it easier for companies to use the EU single market. He pledged to introduce the common European corporate framework known as “EU Inc.” as soon as possible. In effect, he called not only for investment at home but also for conditions that would let businesses treat Europe as a single market.
Can regulation support competitiveness?
Another point worth noting was his comments on AI regulation. The chancellor said Germany was engaging at the European level to ensure that AI regulation opens doors rather than closing them before the technology can take hold.
This does not mean a decision has been made to loosen regulations. It is a statement of intent about how they should be designed. Europe has taken the lead in setting rules for AI, and the remarks offer a glimpse of the view that the rules themselves are part of its competitiveness. For investors, the availability of predictable rules is likely to be a factor when deciding whether to commit large sums.
China brings data together under a state-owned company
A separate development took place in China on the same day. Xinhua reported that the state-owned National Data Group, which will handle data-related business, had been established. Its aims include using data resources to support the development of the AI sector. Its headquarters will be in Xiong’an New Area in Hebei province, built as a flagship initiative of President Xi Jinping.
Executive Vice Premier Ding Xuexiang, who attended the founding ceremony, said the move was significant for seizing the opportunity to take the lead in AI and building new competitive advantages for the country. In China, private companies such as DeepSeek and Alibaba Group are developing AI models, while state-owned companies will play a supporting role from a different angle: data.
A side-by-side look reveals the shape of each country’s policy
Comparing the two countries’ moves highlights different approaches to supporting AI. Germany has set a target for expanding computing capacity, pledged to improve the business environment for investors and signaled that it will help shape regulation. China, meanwhile, has established a new organization in the form of a state-owned company to handle data.
AI competitiveness depends on several factors, including computing capacity, data, rules and funding. Germany has put computing infrastructure and the investment environment front and center, while China has built an organization focused on data. These two announcements alone are not enough to determine which approach is better. But they do show how competition between countries over AI is expanding beyond a contest over model performance to a struggle over building the foundations and systems behind it.
Behind the AI services we use every day, this kind of planning at the national level is quietly taking shape. Where will governments step in: computing capacity, data or rules? The next time you see announcements from countries around the world, looking at them through that lens may bring the news into sharper focus.
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