Siemens buys out AI software engineering firm for US$10bn

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GERMAN-OWNED Siemens is set to acquire the leading American AI firm Altair for US$10bn, further expanding its portfolio in AI-enabled industrial software.

Altair specialises in open architecture simulation and AI solutions, with their software used in a range of heavy industries, including energy, aerospace, and healthcare.

Siemens aims to integrate the company’s simulation technology into its Siemens Xcelerator platform, specifically its digital twin offering which allows engineers to conceptualise their designs.

Siemens says Altair’s data science capabilities will “unlock” its industrial domain expertise in both the product lifecycle and manufacturing processes.

Roland Busch, the CEO of Siemens AG, said: “The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world's most complete AI-powered design and simulation portfolio.”

AI industrial software

Siemens expects the acquisition to increase its digital business revenue by 8%, adding €600m (US$646m) to its revenue of €7.3bn, as reported in FY 2023.

The company, which acquired German automated inspection firm Inspekto earlier this year, joins the likes of Honeywell and Covestro in investing heavily into AI-enabled design software.

Siemens also recently launched its Center for Advanced Technology Collaboration Hub (CATCH) to industrialise additive manufacturing, a 3D printing technology typically used to build engine parts and medical implants.

Altair’s expertise in simulation technology will benefit CATCH, with studies showing it improves the chances of first time right testing.

James Scapa, CEO of Altair, said: “We believe this combination of two strongly complementary leaders in the engineering software space brings together Altair’s broad portfolio in simulation, data science, and HPC with Siemens’ strong position in mechanical and EDA design.”