French industrial software giant Dassault Systèmes is accelerating its artificial intelligence expansion in China as the company deepens partnerships with local technology firms and increases investments tied to industrial AI, advanced manufacturing, and digital infrastructure. The move highlights China’s growing importance in the global race for industrial AI leadership and enterprise computing innovation.
According to reports, Dassault Systèmes is focusing heavily on what it describes as “industrial AI,” a strategy aimed at combining generative AI with physics-based simulations, digital twins, manufacturing systems, and engineering platforms. The company has been strengthening collaborations with Chinese enterprises and AI developers to build next-generation “industry world models” capable of supporting advanced industrial automation and intelligent product design.
The company’s AI strategy has expanded further through its partnership with Nvidia, with both firms working on shared industrial AI platforms that combine simulation technologies with high-performance AI computing. Analysts note that these systems are designed to help manufacturers create virtual environments for designing factories, vehicles, robotics systems, and industrial operations before deploying them in the real world.
Dassault Systèmes has also intensified its direct investment activity in China. Recent reports revealed that the company established its first China-focused venture capital fund dedicated to AI and emerging technology sectors. The fund’s first phase reportedly raised around 750 million yuan and is expected to support startups working in areas such as embodied AI, physical AI, smart manufacturing, robotics, low-altitude aviation systems, and industrial automation.
Chief Executive Officer Pascal Daloz recently stated that China has become one of the world’s most important markets for AI experimentation and large-scale deployment. During visits to multiple Chinese cities, the company engaged with local startups, EV makers, and advanced manufacturing firms as part of efforts to strengthen its industrial innovation ecosystem in the country.
The company is also exploring collaborations with Chinese AI model developers, including evaluating technologies from firms such as DeepSeek. However, Dassault executives emphasized that industrial AI requires more than language-based AI systems, noting the growing need for “physics-oriented” AI capable of understanding engineering, manufacturing, materials science, and real-world industrial processes.
Industry analysts believe Dassault Systèmes is positioning itself to become a major global player in industrial-grade AI infrastructure. Unlike consumer-focused AI companies, Dassault’s strategy centers on integrating AI directly into industrial workflows, digital twins, simulation systems, and enterprise manufacturing operations through its 3DEXPERIENCE platform.
The company has also continued expanding its China innovation ecosystem through research centers and startup programs. Last year, Dassault launched its first Chinese 3DEXPERIENCE open innovation laboratory in Shanghai, aimed at supporting startups working in advanced manufacturing, green energy, life sciences, and new materials. Analysts note that China’s rapid industrial digitization and large-scale manufacturing base make it a strategically important market for industrial AI adoption.
The expansion reflects broader global competition around AI infrastructure, industrial automation, and sovereign technology ecosystems. Governments and enterprises worldwide are increasingly investing in industrial AI platforms capable of combining simulation, robotics, cloud systems, and AI-powered engineering to modernize factories, supply chains, and manufacturing operations. Experts believe industrial AI could become one of the most commercially valuable segments of the broader artificial intelligence market over the next decade.
