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Assembly Breaking News IndustriesMachinery Assembly

Caterpillar Teams With Nvidia to Deploy AI in Factories

By Austin Weber
Caterpillar Inc.
Caterpillar Inc.

Caterpillar is investing in artificial intelligence technology to transform its factories and products. Photo courtesy Caterpillar Inc.

January 9, 2026

LAS VEGAS—As Caterpillar Inc. embarks on its second century, it is investing millions of dollars in artificial intelligence technology to transform its factories and products. As part of that initiative, the company known for its “yellow iron” recently announced that it’s collaborating with Nvidia Corp. to enhance its manufacturing operations.

“This engagement will transform how work gets done for [our] customers, dealers and employees,” says Joe Creed, CEO of Caterpillar. “As AI moves beyond data to reshape the physical world, it is unlocking new opportunities for innovation—from job sites and factory floors to offices.”

According to Creed, Caterpillar is creating an AI-driven ecosystem that” transforms machines, jobsites, factories and supply chains—changing how the world builds, moves and powers progress…. Caterpillar is still the company that builds and powers the physical world you rely on every day, and now we’re making the invisible layer of the modern tech stack more intelligent.”

At CES 2026, Caterpillar debuted the Cat AI Assistant, which will be embedded onboard bulldozers, excavators, scrapers and other construction equipment to help answer customers’ questions and provide personalized recommendations on equipment, parts and maintenance. It will use voice activation to enable settings, guide troubleshooting and connect users to the right resources across Cat apps and websites.

Caterpillar is also using Nvidia AI Factory to create safer, leaner, more resilient production systems, such as forecasting and scheduling.

Engineers are building physically accurate digital twins of the company’s factories on Nvidia Omniverse libraries and OpenUSD. Digital twins will enable them to design, simulate and optimize assembly line layouts and production processes before building in the real world. The technology will be used to help Caterpillar simulate line changes, test scheduling scenarios and optimize material flow before any physical retooling.

The 100-year-old company plans to invest $100 million over the next five years for workforce training and education, including a $25 million Global Workforce Innovation challenge to identify and scale systems that prepare workers for the next generation of AI-enabled industrial systems.


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KEYWORDS: Artificial Intelligence (AI) Caterpillar construction equipment manufacturing smart manufacturing

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Austin has been senior editor for ASSEMBLY Magazine since September 1999. He has more than 25 years of b-to-b publishing experience and has written about a wide variety of manufacturing and engineering topics. Austin is a native of Chicago and a graduate of the University of Michigan.

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