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Crunchbase NewsArticle

VCs Pour Billions Into Physical AI As The Next Wave Of AI Investing Takes Shape

The capital is moving. Physical AI went from a niche to a measurable slice of venture allocation in one year. For builders: if you're in robotics or autonomous systems, this is validation that the bottleneck was capital, not capability. For investors: the returns from pure software foundation models are compressing fast enough that LPs are redirecting into embodied AI, which still has asymmetric upside.