2 · First Voyage

Physical AI

Name: Physical AI category data
Creator: First to Market

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 September 27, 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 founders
If your product gets better the more it's used, how do you get enough customers using it before your runway ends?

By the numbers

Companies tracked

As of September 27, 2026

Market size

~$81.6B (2025)

Estimates vary by definition

Years since the term went mainstream

As of July 17, 2026

Most common pricing model

hybrid

hybrid 2

n = 2 companies with a public pricing model · as of July 17, 2026

Open roles by department

311 open roles

Engineering 51%Operations 13%Data/AI 10%People 7%Product 6%Other 14%

n = 6 companies with public job boards · as of September 1, 2026

Stage history

First Voyagerecorded September 26, 2026

Companies we track

Challengers

Skild AI

Also tracked

Fossils (acquired or shut down)

Covariant

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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.

Which Physical AI companies does First to Market track?

Skild AI, 1X, Agility Robotics, Apptronik, Boston Dynamics, Figure AI, Physical Intelligence.

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