Physical Intelligence shakes up AI robots with $400M raised

• Physical Intelligence, a startup that develops basic software for robotics, has raised $400 million in funding led by Bezos and OpenAI
• Global tech giants such as Microsoft, Google, Meta, Amazon and Nvidia have invested billions of dollars in AI, and robotic artificial intelligence is entering a critical moment

What happened

Physical Intelligence, a startup that develops software for robots, announced on Monday that it raised $400 million. The funding came from Amazon‘s Jeff Bezos, OpenAI, and venture capital firms Thrive Capital and Lux Capital. The company is valued at $2 billion, according to PitchBook.

Physical Intelligence aims to develop software that works with any robot, eliminating the need for task-specific software. The company published a paper last week showing how its Pi-Zero software enables robots to fold clothes and bag groceries.

According to Reuters, global tech giants like Microsoft, Google, Meta, Amazon, and Nvidia have invested billions of dollars in AI. Citing data from Accel, the report added that investments in AI and cloud computing companies in the US, Israel, and Europe will reach $79.2 billion by the end of the year.

Also read: Physical Intelligence Raises $400 Million to Develop Robot Software

Also read: Physical Intelligence, a Robot A.I. Specialist, Raises Millions From Bezos

What it’s important

Physical Intelligence’s success in attracting top investors, including Bezos and OpenAI, reflects the industry’s growth potential.
This potential allows startups to disrupt sectors like logistics, manufacturing, and healthcare. As competition intensifies, startups aren’t just building robots—they are shaping the future of automation and human-computer interaction.

Smaller companies are also making significant inroads in the field. Take RoboDK, a Canada-based company that provides affordable simulation and programming software for industrial robots. RoboDK helps SMEs automate tasks like welding, painting, and assembly—tasks that were once too costly or complex. This shows that robotic AI is not just dominated by giants but also allows small businesses to innovate. Just as Physical Intelligence expands its AI robots for dynamic environments, companies like RoboDK enable automation in manufacturing and logistics.

As the industry becomes increasingly competitive, the rise of smaller companies, coupled with the support of major investors, marks a critical moment for robotic AI. Disruptive innovations can come from both established players and new entrants.