The two tech giants are at it again, and this time they plan to develop the blueprint for next-generation, AI-driven smart factories
Siemens and Nvidia have announced a new plan to develop industrial and physical AI solutions that will bring AI-driven innovation to manufacturing in a major expansion of their existing strategic partnership.
Nvidia will provide AI infrastructure, simulation libraries, models, frameworks and blueprints, while Siemens will commit hundreds of industrial AI experts and leading hardware and software.
“Together, we are building the Industrial AI operating system — redefining how the physical world is designed, built and run — to scale AI and create real-world impact,” said Roland Busch, president and CEO of Siemens AG. “By combining Nvidia’s leadership in accelerated computing and AI platforms with Siemens’ leading hardware, software, industrial AI and data, we’re empowering customers to develop products faster with the most comprehensive digital twins, adapt production in real time and accelerate technologies from chips to AI factories.”
Siemens and Nvidia will build AI-accelerated industrial solutions across the full lifecycle of products and production, addressing innovation, continuous optimization and more resilient, sustainable manufacturing.
The two tech giants are planning to build the world’s first fully AI-driven, adaptive manufacturing sites globally, starting in 2026 with the Siemens Electronics Factory in Erlangen, Germany, as the first blueprint.
“Generative AI and accelerated computing have ignited a new industrial revolution, transforming digital twins from passive simulations into the active intelligence of the physical world,” said Jensen Huang, founder and CEO of Nvidia. He said combining Siemens industrial software with Nvidia full-stack AI platform will empower companies to simulate complex systems in software, then seamlessly automate and operate them in the physical world.
Using an “AI Brain,” powered by software-defined automation and industrial operations software, combined with Nvidia’s Omniverse libraries and AI infrastructure, factories can continuously analyze their digital twins, test improvements virtually and turn validated insights into operational changes on the shopfloor.
The companies aim to scale these capabilities across key verticals and said several customers, including Foxconn, HD Hyundai, KION Group and PepsiCo, are already evaluating the capabilities.
With the partnership expansion, Siemens will complete GPU acceleration across its entire simulation portfolio and expand support for Nvidia CUDA-X libraries and AI physics models, enabling customers to run larger, more accurate simulations faster. Building on that foundation, the companies will advance toward generative simulation by using PhysicsNeMo and open models to provide autonomous digital twins that deliver real-time engineering design and autonomous optimization.
In a release, Siemens says it will integrate Nvidia CUDA-X libraries, PhysicsNeMo and GPU acceleration across its EDA portfolio with a focus on verification, layout and process optimization to target double to 10x improvements in key workflows.
The partnership will also add AI-assisted capabilities such as layout guidance, debug support and circuit optimization to boost engineering productivity while meeting strict manufacturability requirements.
The two companies will also jointly develop a repeatable blueprint for next-generation AI factories. This blueprint will balance the next-generation high-density computing demands for power, cooling and automation while ensuring technologies are well positioned for both speed and efficiency.
Siemens and Nvidia said the partnership will accelerate each others’ operations and portfolio by implementing technologies on their own systems before scaling them across industries. By accelerating one another and improving their own systems, the two companies claim they are creating concrete proof points of value and scalability for customers.
