Caterpillar & NVIDIA: Expand Physical AI for Manufacturing

Caterpillar and NVIDIA are expanding a collaboration to enhance manufacturing systems through physical AI.

The partnership focuses on deploying next-generation technology across construction, mining and power equipment used in factories around the world.

Joe Creed, CEO of Caterpillar, says: “As AI moves beyond data to reshape the physical world, it is unlocking new opportunities for innovation.

“Caterpillar is committed to solving our customers’ toughest challenges by leading with advanced technology in our machines and every aspect of business.”

Edge computing and autonomous machinery

Caterpillar says it is preparing its assets for an automated future by using the NVIDIA Jetson Thor platform to enable real-time processing. These hardware updates provide the foundation for autonomous operations and intelligent in-cab experiences.

The approach allows machines to process sensor data locally as a digital nervous system for worksites, reducing reliance on remote data centres. Machines equipped with these systems process billions of data points in milliseconds, Caterpillar says.

This capability supports equipment navigating variable jobsite conditions where latency can impact safety and productivity. By processing data at the edge, Caterpillar addresses connectivity in remote environments, helping autonomous fleets remain operational even in isolated mining or construction sites.

Generative AI for the industrial workforce

New in-cab features include an operator assistant that provides insights and safety alerts in real time.

The system offers coaching and productivity tips to help operators manage complex tasks with speed, directly addressing the growing skills gap in the industrial workforce.

At CES 2026 in Las Vegas, US, Caterpillar debuted the Cat AI Assistant. This proactive tool is embedded in digital products to help users take informed action using NVIDIA Riva speech models to provide lifelike voices and accurate recommendations on maintenance and parts.

Inside the cab, voice activation allows users to change settings and access troubleshooting guides. The tool relies on data stored on the Helios unified data platform.

Digital twins for resilient factory operations

Caterpillar is using an NVIDIA AI Factory to transform manufacturing and supply chain operations. This infrastructure helps create resilient production systems that are leaner and safer by automating processes such as forecasting and scheduling.

The company uses its manufacturing digital data platform to build physically accurate digital twins of its factories. These models use NVIDIA Omniverse libraries and OpenUSD to mirror real-world facilities with high precision.

They allow teams to design and optimise production layouts before building them in the real world, improving safety and efficiency during planning and expansion. By simulating factory workflows, Caterpillar can identify potential bottlenecks before they affect the physical supply chain.

Growth in industrial AI

The collaboration creates an ecosystem that touches jobsites, factories and supply chains globally. Caterpillar plans to launch an off-board version of the Cat AI Assistant in the first quarter of 2026 and increase research spending through 2030.

Jensen Huang, Founder and CEO of NVIDIA, says: “For a century, Caterpillar has built the industrial machines that shaped the world.

“In the age of AI, NVIDIA and Caterpillar are partnering across the full spectrum – from autonomous construction fleets to the AI data centres powering the next industrial revolution.”