SAN FRANCISCO, 27 March 2026 – A robotics startup founded by former Google DeepMind researchers is in discussions to raise fresh funding at a valuation of around US$11 billion, underscoring surging investor appetite for next-generation artificial intelligence powering physical machines.
The company, Physical Intelligence Inc., is rapidly emerging as one of the most closely watched players in the fast-growing “physical AI” space, where software models are designed to control robots capable of performing real-world tasks.
Valuation Surge Reflects Strong AI Momentum
The latest funding discussions would mark a sharp increase in valuation, effectively doubling the company’s worth within just a few months, highlighting the pace at which capital is flowing into advanced AI ventures.
Physical Intelligence was previously valued at around US$5.6 billion following a US$600 million funding round, illustrating how investor confidence in robotics and embodied AI has accelerated significantly.
Building the ‘Brain’ for Robots
Founded by a team of prominent AI researchers from institutions including Google DeepMind, the company is focused on developing general-purpose AI models that can control robots across multiple environments and tasks.
Unlike traditional robotics systems that require specialised programming, Physical Intelligence aims to create adaptable AI systems capable of learning and operating in dynamic real-world conditions, ranging from industrial automation to everyday human environments.
This approach positions the company at the forefront of the “physical AI” revolution, where intelligence is no longer confined to software but integrated directly into machines.
Part of a Broader Robotics Investment Boom
The funding talks reflect a wider surge in investment across robotics and AI infrastructure globally.
Recent data shows billions of dollars flowing into the sector, as advances in machine learning, sensors and computing power make it increasingly viable to deploy robots at scale.
Major players, including startups and tech giants, are racing to develop humanoid and general-purpose robots, with applications spanning manufacturing, logistics, healthcare and consumer use.
High Stakes in the AI Race
The aggressive valuation also signals growing competition among investors to secure early positions in companies seen as foundational to the future of automation.
However, the scale of funding raises questions around:
- Commercialisation timelines
- Real-world deployment challenges
- Return on investment in capital-intensive sectors
Despite rapid progress, robotics remains a complex field where reliability, cost and scalability are critical hurdles.
Implications for Asian Investors
For investors across Asia, the development highlights several key trends:
- Shift from software AI to “embodied AI” in robotics
- Increasing capital allocation toward deep tech and automation
- Rising importance of AI infrastructure beyond cloud and applications
This could have ripple effects across regional markets, particularly in manufacturing-heavy economies such as China, Japan and South Korea.
Outlook: The Next Frontier of AI
Physical Intelligence’s potential US$11 billion valuation underscores a pivotal shift in the AI narrative, from generative software tools to machines that can interact with the physical world.
As competition intensifies and funding scales up, robotics may emerge as the next major battleground in the global AI race.
For now, the message is clear: investors are no longer just betting on AI that thinks, they are increasingly backing AI that can act.
