Physical AI takes artificial intelligence from screens and software to robots, drones, self-driving vehicles and smart machines.
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The AI begins to leave the screen and move into the physical world.
In recent years, much of the conversation about artificial intelligence has focused on chatbots, co-pilots, and tools that generate text, images, or code. The next wave is different. These are machines that can sense their environment, make decisions and act in the real world.
This is the promise of natural artificial intelligence, also known as embedded artificial intelligence. Think humanoid robots, autonomous vehicles, warehouse machines, drones and intelligent industrial systems that can work alongside humans.
Elon Musk claimed that this technology could help solve poverty and create a world where everyone is happy. That might sound wildly optimistic, and with Musk it often is, but the underlying change is real. Natural artificial intelligence could reshape industries, change the nature of work and change the way the economy works.
To understand where this is leading, we need to look at the companies that make these machines now. Some create robot workers for factories and warehouses. Others are developing robotics, drones, home assistants, or software platforms that train intelligent machines at scale.
Here are some of the key players anyone interested in the future of technology, business or society should watch.
1X Technologies
This company has differentiated itself with its “soft” robots, so called not only because they have clothy, fuzzy exteriors, but because they focus on safe interactions with humans. He hopes this will make them popular in homes and as companions. After all, why should robots be hard and metal? Recently, the announced plans to manufacture 10,000 robots in the first year of operation of its new US factory.
Agility
One of the first companies to develop humanoid robots in work environments alongside humans. Its Digit robots have been deployed in factories operated by womenswear brand Spanx, where they manage warehouse and logistics operations. Robots are equal paid monthly for their work, just like human employees.
Amazon Robotics
Amazon has over a million robot workers, and its global retail and service network has been described as the world’s largest sandbox for embedded artificial intelligence. It finances the development of robotics as well as their integration projects in industrial, commercial, healthcare and domestic spaces. Recent progress includes robots capable of unloading trucks into cargo bays and bipedal robots for multi-level environments.
Apptronik
Humanoid robots, including The model of Apollothey are built to support man in industrial and commercial work. One notable innovation it has pioneered is hot-swappable battery systems, allowing its robots to work almost continuously on factory floors without needing to take charging breaks.
Baidu
Baidu’s Apollo platform already powers autonomous robot taxi and self-driving car infrastructure in about 20 Chinese cities, including Beijing and Shanghai. With solid support from the Chinese government and deep integration into the country’s vehicle manufacturing industry, it has proven to be a world-class player in the embedded AI market.
Boston Dynamics
Hyundai-owned Boston Dynamics has become the poster child for a new generation of AI-enabled robotics thanks to viral video robots like Spot and Atlas; His roots stretch back decades, however, to his time as a technology developer exclusively for the military. It is known as a pioneer of robots that can navigate human environments and has formed partnerships with AI leaders to help establish its position as a global leader in its field.
DJI
The leading Chinese drone manufacturer is known for its consumer and business drones, but has also established itself as a leader in embedded artificial intelligence for industry. The Matrice 4 platform provides AI processing power for autonomous decision making in agriculture, construction and public safety use cases.
AI scheme
Figure makes general purpose humanoid robots designed for work. It also has a partnership with OpenAI, which means that while its machines are working, they help fine-tune the built-in intelligence capabilities of the next generation of foundation models. His robot F.02 reportedly helped build it 30,000 cars in the BMW manufacturing plantswhile its latest model F.03 is designed for domestic work.
Nvidia
Nvidia CEO Hensen Huang said the ChatGPT moment for robotics it’s just around the corner. Creating the software “backbone” for autonomous, embedded artificial intelligence is central to his company’s strategy. This means that it harnesses the power of AI chips to create powerful simulations and platforms for training and controlling natural artificial intelligence on an industrial scale.
Tesla
Tesla’s best-known embedded AI products are its self-driving cars and robotaxi. The data and mass production experience that has been generated is now being channeled into the development of the Optimus humanoid robot. Musk’s grand plan is a helper robot in every home and hordes of robotic workers to free us from the grind of daily work. The long-term goal is to produce one million humanoids per year, making it possible to sell them for about the same cost as an affordable family car.
Unitree Robotics
This Chinese manufacturer has raced ahead of the pack when it comes to developing robots to do real work. It was the world’s top selling humanoid robot in 2025, shipping over 5,000 units, as well as 30,000 four-legged robot dogs. Pursuing a low-cost strategy through mass production has given it an edge, but what’s interesting is the steady increase in the number of its units destined for commercial and industrial use over those going to education and research.
Waymo
Alphabet’s (Google) self-driving vehicle spin-off has established itself as the leading operator of robotaxis (driverless passenger cars) outside of China, with its network reportedly being completed half a million trips every week, in more than 10 US cities. Its scale means Waymo is one of the clearest examples of an embedded AI company delivering everyday commercial services at scale.
The Path To AGI
Natural artificial intelligence is often discussed in relation to artificial general intelligence, or AGI. The basic idea is that machines may need to understand the physical world before they can truly generalize knowledge across multiple tasks.
People learn by interacting with the world. We touch things, move through spaces, observe cause and effect, and then apply these lessons to new situations. If machines are ever to reason and act with broad flexibility, they may need something similar.
This is one reason why embedded artificial intelligence has become such an important field. A chatbot can process language, but a robot needs to understand gravity, friction, motion, distance and danger. It must connect intelligence with action.
Many technical challenges remain, but the bigger questions may increasingly be social and economic. How comfortable are we with autonomous machines in our homes, workplaces and streets? How will they change jobs? Who is responsible when they make mistakes? How can we make sure they are safe?
Physical AI is still in its early stages, but the direction is clear. Intelligence moves in the world around us.
Companies building this future today could become some of the most important businesses of the next decade.
