Physical AI startups get acquired by Big Tech, says NexCOBOT

The article captures a moment where physical AI—robots that incorporate AI into perception, decision-making, and interaction—is moving from research into commercial reality. Shern highlights that large tech companies are buying startups for faster innovation, citing Mobileye's $900 million acquisition of Mentee Robotics in January, Amazon's purchase of Fauna Robotics in March, and Meta's acquisition of Assured Robot Intelligence in May. This trend, she argues, stems from startups' deep expertise in robot learning and perception pairing with Big Tech's infrastructure and capital.

Shern describes a funding landscape that is becoming more selective. While capital remains available for companies with clear technical differentiation and a path to commercialization, early-stage startups may need to validate their business models sooner. This could slow the number of new entrants but potentially encourage more focused innovation.

For industrial adoption, reliability and safety remain critical. NexCOBOT's example of a client shortening its development cycle from an estimated three to five years to two years using an open functional safety controller illustrates how modular platforms can help bridge the speed gap between software and hardware. Shern expects adoption to advance in stages as AI-native robots prove themselves in real-world environments.