Nvidia's Physical AI segment posts over $6 billion in annual revenue as robots apply AI in the physical world

During Nvidia's Q4 FY2026 earnings call in late February, the company's VP of Investor Relations stated 'Physical AI is here.' The Physical AI segment has already posted over $6 billion in annual revenue and is rising fast.

Nvidia is using its Omniverse platform and collaborating with companies like Foxconn to create 'digital twins' of factories (virtual replicas that allow engineers to train virtually before deploying in the real world). The technology enables AI to automate physical tasks rather than just digital work like spreadsheets and code.

Warehouse workers, assembly line operators, truck and bus drivers, and delivery drivers are already starting to be displaced by AI systems. Even trade jobs (electrician, plumber, HVAC tech, mechanic, roofer, carpenter) face pressure not from direct AI replacement but from competition with displaced workers retraining in those fields.