OpenAI & Google Cloud: Hitachi's Physical AI FDE Model

Hitachi is introducing its Forward Deployed Engineers (FDE) model as global deployments of physical AI expand.

The company is also widening its partnerships with OpenAI and Google Cloud to support physical AI integrations and cybersecurity.

Toshiaki Tokunaga, Chief Executive Officer of Hitachi, says: "Deploying AI is only the beginning. The real challenge is making it work safely, effectively and reliably in complex physical environments."

Forward deployed engineers model

FDEs are software specialists that embed directly with customers. They provide end-to-end support across multiple stages of implementation.

Their work includes identifying management challenges, early validation of value through building proofs-of-concept, agile implementation and helping deploy projects into operations.

Toshiaki says: "As Physical AI gains momentum in sectors such as energy, rail and industry, there's growing demand for FDEs to lead the implementation. Hitachi is meeting this demand."

Hitachi and Google Cloud on physical AI

Hitachi is expanding its alliance with Google Cloud to strengthen its FDE capabilities.

The partnership aims to accelerate real-world deployment of physical AI and cybersecurity solutions designed to protect against AI-generated threats.

Thomas Kurian, Chief Executive Officer of Google Cloud, says: "This partnership will better empower customers to implement AI agents and create value faster.

"By integrating Google Cloud Security's advanced solutions with Hitachi's expertise in mission-critical domains, we will help enable our customers to innovate within a secure, trusted environment for the AI era."

The teams will work with Hitachi's Frontier AI Deployment Center to enhance HMAX, a suite of AI-powered solutions that helps drive social infrastructure innovation using Gemini Enterprise.

Gemini Enterprise complements physical AI systems that operate autonomously by capturing real-world conditions.

Hitachi says that the partnership will help solve frontline worker challenges through autonomous operations in complex environments.

OpenAI collaboration on risk mitigation

Hitachi is also partnering with OpenAI to mitigate risks as physical AI deployments increase.

The FDE teams from both companies will use OpenAI's Codex to analyse the source code of mission-critical legacy systems.

This work aims to support safe migration through enhanced visibility into system design.

Tadao Nagasaki, President of OpenAI Japan, says: "Our work with Hitachi is an important step toward enabling the safer and more practical use of AI in Japan's critical industries and social infrastructure.

"OpenAI is committed to developing and deploying safe and beneficial AI, guided by our mission to ensure that AI benefits everyone."

Hitachi's partnership with Google Cloud also focuses on cybersecurity. The companies will use Google Cloud Security technologies and services, including Wiz for automated risk reduction and comprehensive visibility into cloud and AI risks.

Adoption in manufacturing sectors

According to Capgemini Research Institute, 79% of organisations are already engaging with physical AI and 27% already deploy or scale solutions.

Data from the International Federation of Robotics shows more than 500,000 industrial robots were installed in 2024. It estimates that by 2028, the 700,000 mark will be surpassed.

Physical AI solutions are reaching commercial viability across business sectors. 

Early adopters include FANUC, HD Hyundai, Honda, JLR, KION, Mercedes-Benz, MediaTek, PepsiCo, Samsung, SK hynix and TSMC. These companies use NVIDIA's industrial software and tools to accelerate industrial design, engineering and manufacturing.

Hitachi has also partnered with NVIDIA, establishing the Hitachi AI Factory based on the NVIDIA AI Factory reference architecture in 2025.