PepsiCo Partners With Siemens and Nvidia on AI Digital Twins

PepsiCo announced a multi-year collaboration with Siemens and Nvidia designed to transform plant and supply chain operations through advanced digital twin technology and artificial intelligence (AI). The initiative positions the global consumer packaged goods giant at the forefront of industrial AI adoption for complex manufacturing and logistics systems.

PepsiCo Chairman and CEO Ramon Laguarta framed the initiative as central to the company’s effort to become “future-fit,” embedding AI across operations to respond to consumer demand with greater agility and foresight. He said traditional expansion methods are slow and capital-intensive, and that digital twin-driven planning allows PepsiCo to test and scale changes far more quickly and with less risk.

That operational ambition is underpinned by Siemens’ industrial AI and automation platform. Siemens CEO Roland Busch said the collaboration reflects a broader shift toward AI-native manufacturing, arguing that industrial AI is moving from experimentation to core infrastructure. He said Siemens’ technology stack and domain expertise are enabling companies like PepsiCo to apply AI at production scale rather than in isolated pilots.

Nvidia founder and CEO Jensen Huang positioned digital twins as the connective layer that makes that shift possible. He said high-fidelity simulation, combined with generative AI and accelerated computing, allows companies with physical assets to reinvent how they design, operate, and optimize real-world systems, turning virtual models into a foundation for AI-driven industrial operations.

PepsiCo and its partners report measurable results from early deployments of the technology. Using the combined digital twin and AI environment, teams were able to optimize and validate new configurations within weeks. These pilots delivered an estimated 20% increase in throughput at initial facilities and are reported to deliver nearly 100% design validation while uncovering hidden capacity and potential operational issues before physical implementation.

Athina Kanioura, PepsiCo’s CEO for Latin America and global chief strategy and transformation officer, said the company views this digital strategy as building toward “a world where every plant and warehouse operates as part of a single, intelligent ecosystem.”

PepsiCo’s move underscores broader trends in industrial digital transformation. Companies across sectors are adopting digital twins and AI to simulate changes virtually, reduce capital expenditure, and anticipate disruptions. By partnering with Siemens and Nvidia, PepsiCo aims to establish a replicable model that could influence supply chain strategy across manufacturing and distribution sectors.

In previous coverage, PYMNTS highlighted how digital twins simulate factory floors and logistics networks under supply chain stress, allowing teams to test layout changes and automation before deploying capital.

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