Categories / Physical AI
2 · First VoyagePhysical AI
AI embedded in machines, robots and autonomous systems that perceive, decide, and act in the physical world - the convergence of robotics, foundation/world models, simulation and edge compute.
Last updated November 7, 2026
Our read
Physical AI is a new name for an old ambition: machines that perceive, decide and act in the real world. Nvidia popularized the term in 2024, and its academic roots in embodied AI go back to the 1990s. The shift is robotics foundation and world models that let general-purpose robots learn many skills instead of being pre-programmed for one. Robotics and physical-AI deals drew $20B+ across 1,000+ deals in 2025 alone, and the first $1B robotics round landed that year. The name is contested between physical AI, embodied AI and robotics foundation models. We've audited eight companies here.
Open question for foundersIf your product gets better the more it's used, how do you get enough customers using it before your runway ends?
By the numbers
- 2022First company in the category
- 2024First $100M round
- 2025First acquisition
The first $100M round came 2 years after the first company.
How they talk about AI
How we classify
We read each company's homepage headline and subheadline against a fixed word list; the most explicit match wins. Not mentioned: no AI language at all. Implied: automated, intelligent, smart or autopilot, without saying AI. AI: AI, machine learning, LLM or generative. AI agents: agents, agentic, autonomous or digital workers.This reads positioning, not product: a company with a strong AI product counts as "not mentioned" if its homepage doesn't say so. Homepages are re-read every month.
In their own words
- 1X
“NEO - Home Robot”
We create safe humanoid robots that do your chores and offer personalized assistance
- Agility Robotics
“Humanoid robots. Proven results.”
Cooperatively safe humanoids, designed to scale.
- Apptronik
“Robots for Humans”
Apollo is designed to bring AI into the physical world. With advanced mobility, dexterous manipulation, and the ability to learn new skills.
- Boston Dynamics
“Changing your idea of what robots can do.”
Discover practical robotics solutions designed to tackle today's and tomorrow's toughest automation challenges.
- Figure AI
“The future of home help is here”
Figure 03 is a general purpose humanoid robot for every day.
- Humanoid
“Industrial-grade humanoid labour, ready to deploy”
Humanoid is creating the world's leading, commercially scalable, and safe humanoid robots - Building a future where robots amplify human potential
- Physical Intelligence
“Physical Intelligence is bringing general-purpose AI into the physical world.”
We are a group of engineers, scientists, roboticists, and company builders developing learning algorithms to create a model that will control any robot to do any task.
- Skild AI
“Any robot. Any task. One brain.”
Bringing AI into the physical world
Stage history
- First Voyagerecorded September 26, 2026
Companies we track
Fossils (acquired or shut down)
- Covariant
From the newsletter
FAQ
What is Physical AI?
AI embedded in machines, robots and autonomous systems that perceive, decide, and act in the physical world - the convergence of robotics, foundation/world models, simulation and edge compute.
How mature is the Physical AI category?
We place it in stage 2, First Voyage. A few pioneers are sailing the same route. The category has a name but no clear leader — education is still your primary job.
How big is the Physical AI market?
Estimates put it at ~$81.6B (2025). Market sizes vary widely by how analysts draw the category's edges.
How do Physical AI companies usually price?
Most price hybrid: 100% of the 2 tracked companies with a public pricing model.
When did the Physical AI category start?
The first company we count in the category dates to 2022. The first $100M round came in 2024. The first acquisition was in 2025.
How do Physical AI companies talk about AI?
Of the 8 we track, by the language in their homepage headline and subheadline as of October 26, 2026: AI agents 0, AI 3, Implied 1, Not mentioned 4.
Which Physical AI companies does First to Market track?
Humanoid, Skild AI, 1X, Agility Robotics, Apptronik, Boston Dynamics, Figure AI, Physical Intelligence.
Building in Physical AI?
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