Nvidia to Target Factories --- Corporate adoption of AI has faced challenges, but demand is picking up

 

 

“WASHINGTON -- Nvidia owes much of its $5 trillion market capitalization to the use of its systems to train cutting-edge artificial intelligence models. The company is now pushing deeper into the realm of corporations that will employ such models to solve real-life problems.

 

That latter market, called inference, is expected to grow ever larger than the market for training models, Nvidia founder and Chief Executive Jensen Huang has said. On Tuesday, the company brought its series of GTC tech conferences to Washington for the first time, where it explained plans to apply AI to optimize entire factories. It was one of many announcements.

 

Nvidia said it was expanding its technology for simulating robot fleets to include technologies for designing and simulating factory digital twins. It said Siemens was the first company to develop software that supports its technology, known as Mega Omniverse Blueprint. The system is in beta testing, according to Peter Koerte, Siemens's chief technology officer and chief strategy officer.

 

In the factory setting, AI was first used to model components, and later, production lines, according to Koerte and Rev Lebaredian, vice president of omniverse and simulation technology at Nvidia. The new effort is designed to standardize the process of applying AI to factories, make it more complete, and add new levels of photolike realism, they said in an interview.

 

Huang said Foxconn Technology, the world's largest contract electronics manufacturer, is using the new omniverse technologies to design, simulate and optimize its facility in Houston, for manufacturing Nvidia AI infrastructure.

 

The use of AI is already linked to white-collar job losses. The growing role of technology in industrial settings could generate similar concerns, but Lebaredian says the real problem is a shortage of workers for many particular roles where AI and robotics could play a role.

 

Corporate adoption of AI technology has faced challenges, but demand is starting to pick up, according to Justin Boitano, Nvidia vice president, enterprise AI. "There were a lot of challenges in enterprise. Enterprises need to rethink their data centers for AI and it just took them a bit longer because it is this whole stack rearchitecting the data center," Boitano said in an interview.

 

Nvidia is the giant of AI infrastructure, but faces competition from rivals including AMD and Broadcom.

 

Studies have shown that most companies have struggled to drive sufficient value from AI. But one new study from Wharton Human-AI Research and GBK Collective suggests that is changing.

 

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Steven Rosenbush writes for WSJ Pro's CIO Journal.” [1]

 

1. Nvidia to Target Factories --- Corporate adoption of AI has faced challenges, but demand is picking up. Rosenbush, Steven.  Wall Street Journal, Eastern edition; New York, N.Y.. 30 Oct 2025: B5.