NVIDIA, Siemens Deepen Partnership to Build Industrial AI Operating System
Collaboration aims to fuse NVIDIA's Omniverse and AI with Siemens' Xcelerator to accelerate the Industrial Metaverse, targeting a market estimated to reach $100 billion by 2030.
NVIDIA (NASDAQ: NVDA) shares saw modest gains Tuesday as the chipmaking giant unveiled a series of strategic partnerships, headlined by a significant expansion of its collaboration with German industrial powerhouse Siemens to create an "Industrial AI Operating System."
The move aims to deeply integrate NVIDIA's Omniverse platform and AI infrastructure with Siemens' industrial hardware and software, a combination that seeks to redefine manufacturing and design by creating a fully immersive, AI-powered industrial metaverse. Shares of NVIDIA traded around $188.67, holding steady in a busy session that underscored the company's aggressive push to embed its technology across the global economy.
The expanded partnership is a major step toward the vision of the industrial metaverse, where companies can design, test, and optimize entire factories and product lines using photorealistic, physics-based digital twins. "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, in a statement. The collaboration, he added, "fuses the world’s leading industrial software with NVIDIA’s full-stack AI platform to close the gap between ideas and reality."
The core of the initiative involves connecting Siemens' Xcelerator, an open digital business platform, with NVIDIA's Omniverse, a platform for developing and operating 3D internet applications. This will allow the creation of an "AI Brain" for factories, enabling companies to run simulations in the virtual world to validate changes before deploying them in physical facilities. This capability is expected to dramatically accelerate innovation and create more resilient and sustainable manufacturing.
Roland Busch, President and CEO of Siemens AG, framed the deal as a fundamental shift in industrial production. "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," Busch stated. The combined effort, according to a joint announcement, will serve as the foundation for the next generation of AI-driven factories and products.
Analysts see the collaboration as a powerful fusion of two industry leaders, pairing NVIDIA’s dominance in AI and accelerated computing with Siemens’ deep expertise in industrial automation. The strategic alignment is viewed as a critical catalyst for the industrial metaverse, a market that analysts project could be worth $100 billion by 2030, according to insights from Siemens. This creates a substantial new frontier for NVIDIA, extending its reach far beyond its traditional strongholds in gaming and data centers into the heart of global manufacturing.
The partnership also has immediate, practical applications. The companies announced they will first deploy these advanced technologies within their own systems, with Siemens planning to build a fully AI-driven, adaptive manufacturing site at its Electronics Factory in Erlangen, Germany, by 2026. This serves as a blueprint for industrial customers worldwide, with companies like BMW Group already planning to leverage the technology to improve operational efficiency by as much as 30%.
The Siemens deal was the leading story on a day filled with news that highlighted NVIDIA's horizontal integration strategy. The company also announced a partnership with Universal Pictures on AI music creation and the selection of its DRIVE platform by Aeva for autonomous vehicle sensors, reinforcing its presence in media and automotive. This flurry of activity comes as competitors like AMD introduce new AI chips, but NVIDIA's strategy appears focused on building a comprehensive software and hardware ecosystem—an operating system for the AI era—that is becoming increasingly vital across all sectors.