At the Turin Italian National Exhibition in 1884, he saw Gaulard and Gibbs's "secondary generator"' (i.e. AC transformer) system, and he decided to improve it. Including a closed-loop magnetic field, based on the findings of Faraday, he conducted experiments with Miksa Déri in the summer of 1884 at the Ganz factory. Based on these experiments, they invented the transformer in 1885, which was unveiled at the Budapest National Exhibition in 1885.