Silicon Valley's new slogan: Let's get physical

In an exciting shift, Silicon Valley is pivoting from merely teaching AI to communicate, to equipping it with a physical form capable of performing essential tasks alongside humans. This past weekend, a significant development was unveiled at the Nvidia GTC Taipei conference, where the company introduced a foundational blueprint for humanoid robots tailored for academic research, set to be released in late 2026. Sam Altman, CEO of OpenAI, highlighted the shift towards robotics as the company's next major venture. He called for skilled professionals to join in this transformative effort, stating, "In the short term, we are focused on robots to support skilled workers in building future infrastructure; in the long term, we envision everyone having a personal robot to assist with their needs," through a post on X. The race to develop humanoid robots has intensified, with tech giants like Nvidia, OpenAI, Meta, and Tesla, alongside numerous startups, striving to create machines that can interact with the physical world. The term "physical AI," popularized by Nvidia's CEO Jensen Huang, encapsulates this movement, referring to AI systems designed to perform real-world actions. One standout startup, Figure AI, has been seeking to transition its technology from demonstrations to practical applications. Recently valued at $39 billion, Figure AI showcased its humanoids sorting packages in a highly viewed event in May. Shortly after, they secured a partnership with Catalyst Brands, which oversees well-known retail names like JCPenney and Brooks Brothers, to implement humanoids in their logistics operations. Investment in robotics and physical AI has surged, jumping from approximately $4 billion in 2019 to an anticipated $26 billion by 2025, according to PitchBook data. As of now, companies in this sector have raised over $23 billion this year alone. Nvidia’s foray into robotics involves a collaboration that includes a robot body from the Chinese firm Unitree, advanced hands, and Nvidia’s computing technology. This initiative aims to simplify the development process for researchers tackling the complexities of building and testing humanoid robots. Huang emphasized the potential economic impact, stating, "Humanoid robots will introduce physical AI across major industries, creating a multitrillion-dollar opportunity." OpenAI is also increasing its focus on robotics after previously halting a project involving a robotic hand. They are currently working on teaching robotic arms to handle household chores as they strive to develop a humanoid robot. Meta is reinforcing its commitment to robotics, recently acquiring Assured Robot Intelligence, a startup dedicated to creating AI models for humanoids, integrating its team into Meta's Superintelligence Labs. Tesla remains a wildcard in this evolving landscape. CEO Elon Musk has positioned the Optimus humanoid as a key component of Tesla's future, hinting at plans to sell these robots to the public by the end of 2027, despite limited details on their current development. Meanwhile, Boston Dynamics, owned by Hyundai, is advancing towards industrial applications, with plans to deploy thousands of Atlas humanoids in manufacturing settings by 2028. Agility Robotics is already making strides with its Digit humanoid, partnering with major clients such as Amazon and Mercado Libre.