Kawasaki Heavy Industries (TYO:7012) has begun collaborating with Nvidia to develop a next-generation digital shipyard at its Sakaide Works, according to a statement on Thursday.

The initiative aims to create a seamless production system from design to construction, addressing Japan's shipbuilding challenges, such as labor shortages and rising demand for low-carbon vessels.

Building on previous digital transformation efforts and government-backed AI robotics projects, Kawasaki will leverage Nvidia's physical AI stack-including Omniverse, Isaac, and Cosmos-to integrate robotics, autonomous systems, and simulation into shipyard operations.

Kawasaki plans to extend physical AI applications beyond construction to vessel operation, maintenance, and servicing throughout the entire lifecycle.