Siemens' Busch Sees M&A Potential in Operations Software, AI and Life Science

Siemens announced a deeper partnership with Nvidia to build an industrial AI operating system and will pilot the system at its Erlangen plant; CEO Roland Busch said the company sees possible deals in AI, life sciences and operations software and referenced last year’s Dotmatics acquisition.

Siemens announced a closer partnership with Nvidia to develop an industrial AI operating system intended to improve factory efficiency. The companies plan to pilot the system at Siemens’ Erlangen plant and to use an “AI brain” and digital twin technology to analyze and optimize real-time replicas of manufacturing sites. CEO Roland Busch said Siemens is considering further deals in artificial intelligence, life sciences and operations software, citing last year’s $5.1 billion acquisition of Dotmatics and the goal of building a data backbone for life sciences. Siemens plans to deploy the technologies internally first, and several external firms are already evaluating capabilities. Under Busch, Siemens has expanded its focus on factory automation and building management while trying to revive a factory automation division affected by a downturn in China. Key facts: - Siemens and Nvidia announced a partnership to build an industrial AI operating system aimed at making factories more efficient. - The platform will use an “AI brain” and a Digital Twin Composer to analyze and optimize digital replicas of real manufacturing sites in real time. - The first pilot is planned for Siemens’ Erlangen plant, with step-by-step internal deployment before opening the technology to customers. - CEO Roland Busch said Siemens sees possible acquisitions in AI, life sciences and operations software and referenced the $5.1 billion Dotmatics purchase. - Companies including Hon Hai (Foxconn), HD Hyundai and PepsiCo are reported to be evaluating certain capabilities. - Siemens has increased investment in factory automation and building management and is seeking to revive its factory automation division after weakness in China. Summary: Siemens is positioning industrial AI, operations software and life-science data capabilities as central elements of its technology agenda. The near-term steps are internal rollout and testing at Erlangen and further evaluation by external companies, with broader commercial deployment undetermined at this time.