7 major R&D developments this week: Tariffs roil markets, MIT wins $12B contract, Siemens plans $5B acquisition

Market volatility dominated the R&D landscape following President Trump’s tariff actions. The R&D World Index (RDWI) for the week ending April 4, 2025, reflected the initial shock, closing down a significant -9.28% at 3,506.27, with significant losses across all 25 member companies. Auto companies have been especially hard hit. To date, losses range from –1.44% for Ford to –14.21% for Stellantis. This uniform drop marks the first time this occurred in the Index’s history. Following market turmoil and warnings of severe economic consequences, the administration subsequently announced a 90-day pause on some newly imposed tariffs. Yet simultaneous escalations and continued threats of further tariffs, especially targeting China, maintained significant uncertainty and pressure across the global R&D enterprise.

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Government & Policy

1. MIT receives $12.2 billion DOD contract for Lincoln Laboratory

The Massachusetts Institute of Technology (MIT), Cambridge, received a $12.2 billion contract last week to operate a federally funded R&D center (FFRDC) at the Lincoln Laboratory. The U.S. Department of Defense (DOD) stated the indefinite-delivery/indefinite quantity contract supports research, development, and rapid prototyping of advanced technology crucial for DOD and national security needs. Some work under this contract is expected to continue through March 31, 2030.

2. Deloitte lays off U.S. workers amid government cost-cutting demands

Accounting firm Deloitte, London, United Kingdom, announced layoffs last week affecting U.S. workers in government consulting and other advisory service areas. This follows demands by the federal government for the firm to identify potential cost cuts on existing projects. Deloitte described the move as “modest personnel actions” based on moderating growth in certain government sectors, while noting overall demand for its services remains strong. Its U.S. consulting business grew only 0.7% in 2024, compared with 17.8% in 2023. Deloitte’s U.S. workforce was approximately 173,000 at the end of 2024.

Technology & Electronics

3. Siemens plans $5.1 billion acquisition of Dotmatics

Siemens AG, Munich, Germany, announced plans last week to expand its industrial software business into life sciences with a $5.1 billion acquisition of digital R&D platform developer Dotmatics, based in Boston, Massachusetts. This deal aims to enhance Siemens’ capabilities in artificial intelligence (AI) and digital twins, offering customers a more seamless connection between research and manufacturing via its product lifecycle management portfolio. The acquisition is part of Siemens’ ONE Tech Company growth program. Dotmatics, with a global customer base of 14,000, develops products including automated lab data ingestion and predictive AI software.

4. Knighthead Capital plans AI data campus on former coal mine site

Knighthead Capital Management, New York City, the majority owner of Homer City Redevelopment in Pennsylvania, announced plans last week to create a large AI data campus on the site of what was formerly Pennsylvania’s largest operating coal mine. The campus will be powered by a new natural gas-fired plant, expected to be the country’s largest at up to 4.5 GW – more than double the output of the original coal plant. Natural gas will be sourced from the underlying Marcellus Shale field.

5. Meta plans massive $10 billion+ AI data center in Louisiana

RDW Index member Meta Platforms, Menlo Park, California, revealed plans last week to build its largest-ever data center on 2,700 acres of farmland purchased in 2024 in Louisiana. The proposed 4 million square foot facility will cost over $10 billion and occupy a site larger than Louisiana State University’s campus. Meta stated the center will be used to train future versions of Llama, its open-source AI models, and will be powered by three natural gas-fired power plants costing $3.3 billion.

6. CoreWeave stock debut disappoints amid AI infrastructure questions

CoreWeave, Livingston, New Jersey, experienced a lackluster stock debut last week, with its share price closing slightly below the initial offering. CoreWeave provides cloud access to Nvidia AI chips, with revenues climbing from $229 million in 2023 to $1.9 billion in 2024, nearly two-thirds derived from Microsoft. However, analysts expressed concern about long-term growth, citing Microsoft’s development of its own custom AI chips potentially reducing reliance on CoreWeave. The high cost of operating large data centers in a competitive market raises questions about the sustainability of CoreWeave’s model, contributing to the mediocre stock performance.

Automotive & Manufacturing

7. Honda R&D to test water electrolysis system on ISS

RDW Index member Honda, Tokyo, Japan, announced last week that its R&D group will test its high differential pressure water electrolysis system aboard the International Space Station (ISS). This test is a collaboration with Sierra Space (Louisville, Colorado) and Tec-Masters (Huntsville, Alabama). It aligns with Honda’s vision for a regenerative fuel cell system capable of supporting human life on the lunar surface, leveraging the company’s decades of experience in developing such systems.

The R&D World Index

R&D World’s R&D Index is a weekly stock market summary of the top international companies involved in R&D. The top 25 industrial R&D spenders in 2020 were selected based on the latest listings from Schonfeld & Associates’ June 2020 R&D Ratios & Budgets. These 25 companies include pharmaceutical (10 companies), automotive (6 companies) and ICT (9 companies) who invested a cumulative total of nearly 260 billion dollars in R&D in 2019, or approximately 10% of all the R&D spent in the world by government, industries and academia combined, according to R&D World’s 2021 Global R&D Funding Forecast. The stock prices used in the R&D World Index are tabulated from NASDAQ, NYSE, and OTC common stock prices for the companies selected at the close of stock trading business on the Friday preceding the online publication of the R&D World Index.