PepsiCo this week announced a multi-year collaboration with Siemens and NVIDIA to transform plant and supply chain operations through digital twins and artificial intelligence.
PepsiCo plans to apply digital twins to reshape how plant and warehousing facilities are digitally simulated and tested. The Purchase, N.Y.-based company already has early pilots underway in the U.S.
“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.”
With demand for production and distribution capacity rising, PepsiCo is using AI and new digital approaches to process simulation and facility design. The company said they will help it retool and optimize its existing physical footprint. It noted that traditional expansion methods are slow and costly, limiting flexibility and scalability.
Instead, PepsiCo is shifting to a digital-first planning strategy. The company is using physics-based digital twins and AI agents as co-designers to simulate, validate, and optimize facility layouts before any physical build.
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 U.S. with plans to scale globally.
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Siemens asserted that its new software builds industrial metaverse environments at scale. The company said this empowers organizations to apply industrial AI, simulation, and real-time physical data to make decisions virtually, at speed, and at scale.
Digital Twin Composer enables industrial companies to combine 2D and 3D data from Siemens’ virtual and physical real-time information with a real-time photorealistic scene accelerated by NVIDIA Omniverse libraries. Siemens said users can rapidly build and maintain this environment. It contains all aspects of their product or production data in a secure, managed, high-fidelity 3D experience throughout the lifecycle of the product, process, or facility.
PepsiCo and Siemens said they are digitally transforming select U.S. manufacturing and warehouse facilities by converting them into high-fidelity 3D digital twins. These digital twins simulate plant operations and the end-to-end supply chain to establish a performance baseline.
Within weeks, teams optimized and validated new configurations to boost capacity and throughput, giving PepsiCo a unified, real-time view of operations with the flexibility to integrate AI-driven capabilities over time.
“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.”
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Using Siemens’ Digital Twin Composer, NVIDIA Omniverse, and computer vision, PepsiCo can now recreate every machine, conveyor, pallet route, and operator path with physics-level accuracy. This enables AI agents to simulate, test, and refine system changes — identifying up to 90% of potential issues before any physical modifications occur.
The company reported that this approach has already delivered a 20% increase in throughput on initial deployment. It is also driving faster design cycles, nearly 100% design validation, and 10 to 15% reductions in capital expenditure (Capex) by uncovering hidden capacity and validating investments in a virtual environment.
“We are deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry,” said Athina Kanioura, CEO for Latin America and global chief strategy and transformation officer at 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,” she added. “In this future, our facilities don’t just respond to demand, they anticipate and then adapt to it.”
This partnership was formally announced during the opening keynote at CES 2026.
