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A robotic arm gets to work at German manufacturer Rittal’s smart factory in Haiger, to the west of Hesse, Germany.

Rittal

Conversational artificial intelligence that can be used to communicate with equipment and generate machine parts. Digital versions of vehicles and planes that can be modified to fine-tune their physical counterparts. And autonomous robots that move as you walk by.

These are just a few of the technologies that will power the factories of the future, according to technologists and industry experts who spoke with CNBC.

In the future, factories will be much more connected, relying on a mix of technologies, from artificial intelligence, data platforms and edge devices to the cloud, robotics and sensors, Goetz Erhardt, Europe lead for Accenture’s digital engineering and manufacturing division, told CNBC.

“These technologies support fully automated, ‘dark’ plants, automated decision-making, enhanced equipment monitoring, and new production networks with recycling and upcycling capabilities,” Erhardt said via email.

Today’s factories — from those used in machinery and automobiles to food processing plants — have progressively become more advanced with regard to adopting technology. Robotic arms involved in the manufacturing process — adding and removing materials, welding and placing goods on pallets — are now a common sight.

More advanced A.I.

As much more advanced artificial intelligence technologies are added into the mix, the industrial manufacturing process could shake up further. Conversational systems such as OpenAI’s GPT could one day become integrated into robotics, enabling more sophisticated, emotionally intelligent machines.

Can China's ChatGPT clones give it an edge over the U.S. in an A.I. arms race?

“Generative AI (AI that makes new content in response to user inputs) has enormous potential in manufacturing for equipment optimization, interaction and intelligence — from robotic processes through to machining,” Simon Floyd, director of manufacturing and transportation industries at Google Cloud, told CNBC.

Google is among the tech world giants looking to capitalize on large language models, which can generate more humanlike responses thanks to the huge amounts of data they are trained on. The company launched its own AI chatbot Bard earlier this year to rival OpenAI’s ChatGPT.

Consumer products aren’t the only focus of Google’s AI efforts. The company recently upgraded its cloud platform for manufacturers to more efficiently pull data from machines and detect anomalies in the production process.

Going forward, AI will be able to “converse using natural language with manufacturing equipment to understand the current state and the predicted future performance — therefore assisting people and allowing them to focus on high value tasks,” Google Cloud’s Floyd told CNBC.

Floyd said that Google is already working to achieve this with natural language processing capabilities in its AI tools. The company has also created a language model for robots called PaLM-E, which gathers sensory information from the physical environment, as well as text-based inputs.

Engineers will eventually be able to develop new machinery using generative AI tools, Floyd said.

“In the future, there is potential to generate content from and for many types of manufacturing equipment, ranging from specific repair instructions to software code that is tailored to a specific asset.”

‘Digital twins’

One development many industrialists are excited about is “digital twins” — 3D digital replicas of objects in the physical world that can be modified and updated in parallel with the items they aim to mimic.

One example of a company using digital twins to aid its physical manufacturing is Rolls Royce, whose engineers create precise virtual copies of its jet engines and then install sensors and satellite networks on-board to feed back data to the digital copy in real time.

“For every modern Rolls Royce jet engine up on a plane in the sky, there’s one in the cyber sphere that needs to be maintained, working out how much stress is going through the plane,” said John Hill, CEO of Silico AI, a startup that focuses on digital twins for business processes. “That will depend on how the engine is faring in the atmospheric conditions and pressures in the air.”

Another example is Renault, which created a digital twin for a new “software-defined” car with artificial intelligence capabilities to enhance services.

The Metaverse is grappling with investment scale back

Digital twins form part of the so-called “metaverse,” which embodies the idea that people will spend more of their work and leisure time in huge 3D digital spaces. Some companies are also looking to incorporate the physical world in some iterations of the metaverse. 

Many manufacturers see potential in the “industrial metaverse,” a version of the metaverse tailored to the manufacturing, construction and engineering industries. Accenture’s Erhardt told CNBC that he is mainly seeing use cases in creative collaboration and product development, maintenance and remote repairs, designing and optimizing production operations, and workforce training

“The metaverse could become a game changer for industrial companies once they couple its collaborative, immersive, visual and intuitive dimensions with digital twins fed by integrated data pools across departments, systems, operations technology and IT,” Erhardt said. “This could create a virtual, fully immersive and intuitive simulation of the entire enterprise.”

Safety first

Companies are looking for ways to cut down on more menial tasks in factories with digital technology, amid a wave of labor shortages.

“Previously, automation has not been an option for manufacturing products due to minimal financial resources and investment,” Olivier Ribet, Executive Vice President, EMEAR at Dassault Systèmes, told CNBC.

“However, this is changing rapidly due to technological changes that have decreased costs and democratized automation through low/no code robotics allowing more manufacturing companies to leverage the advantages of automation in terms of precision, efficiency, and productivity.”

There are downsides to consider — not least of which job security — as the rise of AI and digital automation in factories has led to worries about the labor market. Generative AI, a relatively recent development, could erase 300 million jobs, Goldman Sachs estimates.

Still, history shows that technological progress doesn’t just make jobs redundant, it also creates new roles— which typically outpaces the number of jobs displaced. Manufacturers are still scrambling for staff, with 41% of manufacturing businesses citing talent pool as a “very significant” barrier preventing full potential, according to a Bain and Company survey.

The hope is that connecting machines to the internet and integrating sensors and predictive AI algorithms will allow them to more safely navigate their surroundings and work collaboratively with humans, rather than replace them, according to Maya Pindeus, CEO of AI startup Humanising Autonomy.

“Think of the factory, you have robot arms, you have different vehicles to move goods around, you have operators, you have safety cameras,” Pindeus told CNBC. 

“What I would look at in the factory of the future is you have high levels of safe automation that can operate around people … I’ve been to factories where you have the big robot arm caged up and it’s really far away from people. It looks very inefficient to me.”

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Navan sets price range for IPO, expects market cap of up to $6.5 billion

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Navan sets price range for IPO, expects market cap of up to .5 billion

FILE PHOTO: Ariel Cohen during a panel at DLD Munich Conference 2020, Europe’s big innovation conference, Alte Kongresshalle, Munich.

Picture Alliance for DLD | Hubert Burda Media | AP

Navan, a developer of corporate travel and expense software, expects its market cap to be as high as $6.5 billion in its IPO, according to an updated regulatory filing on Friday.

The company said it anticipates selling shares at $24 to $26 each. Its valuation in that range would be about $3 billion less than where private investors valued Navan in 2022, when the company announced a $300 million funding round.

CoreWeave, Circle and Figma have led a resurgence in tech IPOs in 2025 after a drought that lasted about three years. Navan filed its original prospectus on Sept. 19, with plans to trade on the Nasdaq under the ticker symbol “NAVN.”

Last week, the U.S. government entered a shutdown that has substantially reduced operations inside of agencies including the SEC. In August, the agency said its electronic filing system, EDGAR, “is operated pursuant to a contract and thus will remain fully functional as long as funding for the contractor remains available through permitted means.”

Cerebras, which makes artificial intelligence chips, withdrew its registration for an IPO days after the shutdown began.

Navan CEO Ariel Cohen and technology chief Ilan Twig started the company under the name TripActions in 2015. It’s based in Palo Alto, California, and had around 3,400 employees at the end of July.

For the July quarter, Navan recorded a $38.6 million net loss on $172 million in revenue, which was up about 29% year over year. Competitors include Expensify, Oracle and SAP. Expensify stock closed at $1.64on Friday, down from its $27 IPO price in 2021.

Navan ranked 39th on CNBC’s 2025 Disruptor 50 list, after also appearing in 2024.

WATCH: Brex CEO on Navan partnership

We developed 'best in class' enterprise travel expense solution, says Brex CEO on Navan partnership

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Tech megacaps lose $770 billion in value as Nasdaq suffers steepest drop since April

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Tech megacaps lose 0 billion in value as Nasdaq suffers steepest drop since April

Jensen Huang, CEO of Nvidia, speaking with CNBC’s Jim Cramer during a CNBC Investing Club with Jim Cramer event at the New York Stock Exchange on Oct. 7th, 2025.

Kevin Stankiewicz | CNBC

Shares of Amazon, Nvidia and Tesla each dropped around 5% on Friday, as tech’s megacaps lost $770 billion in market cap, following President Donald Trump’s threats for increased tariffs on Chinese goods.

With tech’s trillion-dollar companies occupying an increasingly large slice of the U.S. market, their declines send the Nasdaq down 3.6% and the S&P 500 down 2.7%. For both indexes, it was the worst day since April, when Trump said he would slap “reciprocal” duties on U.S. trading partners.

After market close on Friday, Trump declared in a social media post that the U.S. would impose a 100% tariff on China and on Nov. 1 it would apply export controls “on any and all critical software.”

Amazon, Nvidia and Tesla all slipped about 2% in extended trading following the post.

The president’s latest threats are disrupting, at least briefly, what had been a sustained rally in tech, built on hundreds of billions of dollars in planned spending on artificial intelligence infrastructure.

Read more CNBC tech news

In late September, Nvidia, which makes graphics processing units for training AI models, became the first company to reach a market cap of $4.5 trillion. Nvidia alone saw its market capitalization decline by nearly $229 billion on Friday.

OpenAI counts on Nvidia’s GPUs from a series of cloud suppliers, including Microsoft. OpenAI is only seeing rising demand.

In September it introduced the Sora 2 video creation app, and this week the company said the ChatGPT assistant now boasts over 800 million weekly users. But Microsoft must buy infrastructure to operate its cloud data centers. Microsoft’s market cap dropped by $85 billion on Friday.

The sell-off wiped out Amazon’s gains for the year. That stock is now down 2% so far in 2025. It competes with Microsoft to rent out GPUs from its cloud data centers, but it doesn’t have major business with OpenAI. The online retailer is now worth $121 billion less than it was on Thursday.

“There continues to be a lot of noise about the impact that tariffs will have on retail prices and consumption,” Amazon CEO Andy Jassy told analysts in July. “Much of it thus far has been wrong and misreported. As we said before, it’s impossible to know what will happen.”

Tesla, which introduced lower-priced vehicles on Tuesday, saw its market capitalization sink by $71 billion.

The automaker reports third-quarter results on Oct. 22, with Microsoft earnings scheduled for the following week. Nvidia reports in November.

Google parent Alphabet and Facebook owner Meta fell 2% and almost 4%, respectively.

WATCH: Pres. Trump: Calculating massive increase of tariffs on Chinese products into U.S.

Pres. Trump: Calculating massive increase of tariffs on Chinese products into U.S.

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Govini, a defense tech startup taking on Palantir, hits $100 million in annual recurring revenue

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Govini, a defense tech startup taking on Palantir, hits 0 million in annual recurring revenue

Govini, a defense tech software startup taking on the likes of Palantir, has blown past $100 million in annual recurring revenue, the company announced Friday.

“We’re growing faster than 100% in a three-year CAGR, and I expect that next year we’ll continue to do the same,” CEO Tara Murphy Dougherty told CNBC’s Morgan Brennan in an interview. With how “big this market is, we can keep growing for a long, long time, and that’s really exciting.”

CAGR stands for compound annual growth rate, a measurement of the rate of return.

The Arlington, Virginia-based company also announced a $150 million growth investment from Bain Capital. It plans to use the money to expand its team and product offering to satisfy growing security demands.

In recent years, venture capitalists have poured more money into defense tech startups like Govini to satisfy heightened national security concerns and modernize the military as global conflict ensues.

The group, which includes unicorns like Palmer Luckey’s Anduril, Shield AI and artificial intelligence beneficiary Palantir, is taking on legacy giants such as Boeing, Lockheed Martin and Northrop Grumman, that have long leaned on contracts from the Pentagon.

Read more CNBC tech news

Dougherty, who previously worked at Palantir, said she hopes the company can seize a “vertical slice” of the defense technology space.

The 14-year-old Govini has already secured a string of big wins in recent years, including an over $900-million U.S. government contract and deals with the Department of War.

Govini is known for its flagship AI software Ark, which it says can help modernize the military’s defense tech supply chain by better managing product lifecycles as military needs grow more sophisticated.

“If the United States can get this acquisition system right, it can actually be a decisive advantage for us,” Dougherty said.

Looking ahead, Dougherty told CNBC that she anticipates some setbacks from the government shutdown.

Navy customers could be particularly hard hit, and that could put the U.S. at a major disadvantage.

While the U.S. is maintaining its AI dominance, China is outpacing its shipbuilding capacity and that needs to be taken “very seriously,” she added.

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