IoT Week Highlights: Samsung Invests $22B in AI, Siemens Buys Mendix, Sierra Wireless Surprises, IBM Expands Security Labs

It’s been a whirlwind week for the tech sector. While some vendors double down on the Internet of Things (IoT) to capture new niches, others are reaping the rewards of earlier IoT bets. Jeremy Cowan reports from a market full of surprises.

Samsung Group is committing 25 trillion won (US$22 billion) to artificial intelligence, 5G mobile technology, automotive electronic components, and biopharmaceuticals in pursuit of fresh growth opportunities. (See: Qualcomm pays $2 bn as it kills plans to buy NXP but board authorises $30 bn stock repurchase, insists strategy unchanged.)

Samsung’s $22B AI and 5G Push

Samsung’s semiconductor and smartphone businesses have underperformed, prompting a strategic pivot. The $22 billion investment is part of a broader 180 trillion‑won ($158 billion) three‑year plan to diversify revenue streams. The move follows a period of leadership turmoil, as founder‑son Jay Y. Lee was released from jail in February on a suspended sentence.

Intel’s Shift to AI Chips

Intel (INTC) sold $1 billion worth of Xeon AI processors in 2017 and has since leaned on data‑center revenues to offset declining PC sales. These centers rely on AI for speech recognition and other cognitive tasks.

Siemens Acquires Mendix for €600 M

Siemens AG (SIEGY) will buy Rotterdam‑based Mendix for €0.6 billion in cash. Mendix, a cloud‑native low‑code platform, accelerates the deployment of industrial IoT applications. “Mendix is a leader in the rapidly expanding low‑code segment and their platform will help our customers to adopt MindSphere even faster by accelerating cloud‑based application development for the Industrial Internet of Things,” said Klaus Helmrich, Managing‑Board member.

Mendix will keep its brand and ecosystem while Siemens backs its independent roadmap, preserving its status as the most innovative, open low‑code cloud platform.

Sierra Wireless Beats Expectations

Canada‑based Sierra Wireless surprised analysts with a 16.4% year‑on‑year rise in Q2 revenue to $201.9 million and a 4.7% increase in adjusted EBITDA, boosting the bottom line by $15.6 million. The company forecasts Q3 revenue of $198 million to $207 million, exceeding earlier expectations.

Higher‑margin markets such as IoT (revenues up 210%) and Enterprise Solutions (up 31%) drove the performance. Interim CEO Kent Thexton called the results “solid,” while SVP Marc Overton highlighted strong MVNO opportunities. The Numerex acquisition is integrating well, scaling cloud and connectivity solutions.

IBM Expands Security Labs

Security Week reports that IBM has added four new X‑Force Red testing labs in Australia, the UK, and two in the US. The labs will probe security vulnerabilities in connected vehicles, consumer and industrial IoT devices, and bank ATMs.

Cash is flowing out of semiconductors and smartphones into AI and IoT, challenging the narrative that IoT is merely hype.