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A major construction equipment maker is testing artificial intelligence systems in its machines through a new collaboration with a leading chip manufacturer.
Caterpillar announced it’s working with Nvidia to add AI capabilities to its construction machinery. The company showed off its new system, called “Cat AI,” at the Consumer Electronics Show on Wednesday. The technology is being tested in the Cat 306 CR Mini Excavator, a mid-sized digging machine.
The AI system runs on Nvidia’s Jetson Thor platform and uses multiple AI agents to help machine operators. Brandon Hootman, who leads data and AI work at Caterpillar, explained that the system can respond to operator questions, provide access to information, give safety advice, and set up service appointments.
According to Hootman, getting useful information to workers while they’re operating equipment is crucial. “Our customers don’t live in front of a laptop day in and day out; they live in the dirt,” he said. The new technology lets operators get the information they need without stopping their work.
Digital twins help plan construction projects
The partnership also involves creating virtual copies of construction sites. Caterpillar is testing these digital replicas using Nvidia’s Omniverse simulation tools. These virtual environments help plan work schedules and figure out how much material will be needed for projects. The company’s machines already transmit around 2,000 messages per second back to Caterpillar, and this information will help create accurate simulations.
Caterpillar already uses fully self-driving vehicles in mining operations. Hootman said the current tests represent an important step forward as the company works to add more automation across its product line. He explained they started with this project because it addressed an immediate customer need and could be brought to market relatively quickly. The technology also creates a foundation for future development.
Nvidia expands physical AI strategy
For Nvidia, working with a traditional industrial company like Caterpillar fits into its plans for physical AI. Bill Dally, the company’s chief scientist, said in 2025 that physical AI represents the next major opportunity for Nvidia and its graphics processing units.
At its Monday keynote at CES, Nvidia outlined its complete system for physical AI, including open AI models like its Cosmos family, simulation software, and tools for developers.
Deepu Talla, who oversees robotics and edge AI at Nvidia, said the company views physical AI broadly. “Physical AI is the next wave of AI,” Talla said, adding that the technology applies to any machine, from self-driving cars to construction equipment.
Nvidia announced this week that it plans to supply computer chips and self-driving software to companies running robotaxi fleets, with services expected to begin operations in 2027.
The chip manufacturer announced a partnership with Uber in October to develop technology for autonomous taxis.
In December, Nvidia launched software allowing vehicles to handle city driving without human input. Mercedes-Benz plans to install this system in vehicles arriving in late 2026, enabling them to manage challenging urban environments similar to San Francisco streets.
Nvidia provides automakers with computer processors and testing software. The company sells its Drive AGX Thor automotive computer for approximately $3,500 per unit. According to Nvidia, this helps car manufacturers reduce costs in developing autonomous driving features and bring them to market more quickly.
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