PepsiCo forms AI digital twin partnership with Siemens & NVIDIA

PEX Network’s key takeaways:

• PepsiCo is collaborating with Siemens and NVIDIA to transform plant and supply chain operations through digital twin and artificial intelligence (AI) technology.
• Collaboration marks a “first-of-its-kind” initiative for a global CPG company.
• “Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight.”

PepsiCo has formed a new, “industry-first” partnership with Siemens and NVIDIA to transform plant and supply chain operations through advanced digital twin technology and AI.

The collaboration marks a first-of-its-kind initiative for a global CPG company applying digital twins to reshape how plant and warehousing facilities are digitally simulated and tested, with early pilots already underway in the US, according to the announcement. The partnership was formally revealed during the opening keynote at CES 2026.

Last year, PepsiCo announced plans to accelerate its digital transformation as part of a multiyear agreement with AWS. By leveraging AWS’s infrastructure and services, PepsiCo aims to drive faster AI innovation, transforming its supply chain and go-to-market strategies and creating deeper, more personalized experiences with consumers.

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PepsiCo partners with Siemens and NVIDIA

Facing rising demand for production and distribution capacity, PepsiCo is turning to AI and digital process simulation to optimize and redesign its existing facilities. Conventional expansion models are slow and costly, limiting the flexibility and scale needed to meet consumer growth and drive innovation.

PepsiCo is shifting to a digital-first planning strategy, leveraging physics-based digital twins and AI agents as co-designers to simulate, validate, and optimize facility layouts before any physical build, stated a press release.

As part of these efforts, PepsiCo is using Siemens Digital Twin Composer, built on NVIDIA Omniverse libraries, to simulate upgrades to its facilities in the US with plans to scale globally.

“The scale and complexity of PepsiCo’s business, from farm to shelf, is massive – and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers,” said Ramon Laguarta, chairman and CEO of PepsiCo. “Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight.”

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Physical industries enter the age of AI

Physical industries are entering the age of AI. For companies with real-world assets, digital twins are the foundation of their AI journey, said Jensen Huang, founder and CEO of NVIDIA.

“Working with NVIDIA and Siemens, PepsiCo is re-architecting its operations – using physically accurate digital twins and AI to reinvent how it designs, optimizes, and runs its global operations.”

Leveraging Siemens’ Digital Twin Composer, NVIDIA Omniverse, and computer vision, PepsiCo can recreate every machine, conveyor, pallet route, and operator path with physics-level accuracy, enabling AI agents to simulate, test, and refine system changes – identifying up to 90 percent of potential issues before any physical modifications occur.

PepsiCo is deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry, commented Athina Kanioura, CEO, Latin America, global chief strategy and transformation officer of PepsiCo.

“With a unified, AI-powered digital foundation, PepsiCo is building toward a world where every plant and warehouse operates as part of a single, intelligent ecosystem. In this future, our facilities don’t just respond to demand, they anticipate and then adapt to it.”

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