Schneider acquires the industrial-AI company Cognite for $3.1 billion.

      Schneider Electric is set to acquire Cognite, an industrial AI firm established in Norway, for $3.1 billion in cash. The French company seeks software that can enable factories and power grids to operate autonomously. On June 30, 2026, Schneider Electric announced that it had reached an agreement to purchase Cognite in a cash transaction totaling $3.1 billion. Cognite specializes in creating software that organizes messy industrial data into a unified system that allows AI to make decisions. Schneider intends to integrate Cognite into Aveva, its industrial software division.

      This acquisition reflects a transformation in the role of industrial AI. Historically, it primarily described activities within a facility, identifying faults or monitoring output. Now, it increasingly plays a role in decision-making and actions. Schneider aims to lead this development. CEO Olivier Blum noted that “Cognite has built something unique, a genuinely industrial-grade AI platform,” positioning the acquisition as a means for Schneider to be “at the forefront of the next phase of industrial intelligence.”

      Founded in 2017, Cognite boasts more than 800 employees across the Americas, Europe, the Middle East, and Asia-Pacific. Its platform combines a unified data model and knowledge graph with advanced AI tools. Essentially, it organizes and connects the data generated by machines. AI agents conduct analyses and automate workflows based on this data.

      At the heart of Cognite's offerings are two key products: Data Fusion, which tackles the complexities of modeling and contextualizing engineering and operational data, and Atlas AI, which adds generative AI capabilities that automate processes and expedite decision-making. On a factory floor, for instance, an AI agent could identify a malfunctioning pump, order the necessary part, and schedule repairs, pending human approval. Schneider plans to integrate both products with Aveva’s CONNECT platform, the software division it already possesses, aiming for a cohesive system that encompasses the design, operation, and optimization of industrial assets.

      Cognite targets asset-intensive industries, including oil and gas, power generation, and manufacturing, sectors that possess extensive historical data that remains underutilized. Its proposition is to transform this data backlog into actionable insights for AI agents. This sector is competitive, attracting data software companies like Palantir, increasing the scramble for the industrial data landscape.

      The business is growing rapidly, with revenue exceeding $170 million in 2025 and a 36 percent increase in recurring bookings. Cognite’s stakeholders stand to gain significantly from the sale, with Norway’s Aker, which helped establish the company in 2017, anticipating around $1.48 billion in cash proceeds, including the repayment of a convertible loan, as reported by Bloomberg.

      This deal aligns with a broader European initiative. Manufacturers throughout the continent are increasingly incorporating AI into their operations to enhance efficiency and reduce waste. Schneider’s competitor, Siemens, is pursuing the same market. For Europe, industrial AI remains one of the few sectors where it retains an advantage over the U.S. and China, prompting companies to work diligently to maintain this edge.

      Blum connected the rationale to energy, asserting that the energy transition necessitates intelligence, which in turn relies on data, and unlocking that data requires AI. Schneider provides the hardware essential for the physical world, while Cognite supplies the software that enhances that hardware's capabilities.

      Schneider is also benefiting quietly from the broader AI surge. Its stock has risen 26 percent within a year, reaching record levels, as investors support companies involved in the infrastructure of the AI boom. The company supplies energy and cooling equipment to the data centers that develop and operate AI models, with that segment expanding swiftly, particularly in markets like India.

      Acquiring software represents the next phase for Schneider. Instead of developing an industrial AI platform from the ground up, it is following the trend of larger companies by acquiring an established entity with such capabilities. France has made significant efforts to foster its AI sector, from new startups to government investment. Schneider is recognized as the fourth-largest company in France by market value, estimated at approximately €165 billion.

      However, the acquisition has not yet been finalized. It requires regulatory approval, and the companies anticipate completing the deal in the coming quarters. The industrial software sector remains a competitive field, with European investors closely monitoring which platforms emerge victorious. Schneider is wagering that the entity controlling the data layer will ultimately dominate the factory environment.

      If this gamble pays off, Schneider will be positioned to market both the hardware and the intelligence that operates it. “We provide them with the capacity to think, adapt, and act,” Blum remarked regarding the company's systems. The potential is significant, but the results will only be confirmed on actual factory floors once the acquisition is finalized and the integration of Cognite into Aveva begins.