One often hears about AI’s impact on machine learning, large language models, and compute networking, yet the arena of AI applications is swiftly evolving.
A significant focal point receiving attention is the realm of robotics. Notably, companies such as Amazon and Alibaba have long employed robotics in their warehouses, enhancing operational efficiency in packaging and logistics.
A notable shift is now turning heads in the technology sphere, with a spotlight on humanoid bots. In a recent panel discussion on AI, Nvidia’s CEO, Jensen Huang, hinted at the near arrival of humanoid robotics.
Let’s delve into the rise of humanoid robotics and explore Nvidia’s strategic moves in this burgeoning field.
The Intersection of AI and Robotics
Robotics occupies a unique niche in the broader AI narrative, bridging the gap between software and hardware. Interestingly, a host of companies is actively engaged in the development of humanoid robots.
Prominent players in the robotics domain include Boston Dynamics and Tesla, with Tesla tantalizing investors with previews of its future humanoid bot, Optimus, slated for deployment in its factories and assembly lines.
Moving beyond the established giants, a lesser-known Norwegian startup named 1X has raised a substantial $125 million in VC funding from heavyweights like OpenAI, Samsung, and Tiger Global.
Image source: Getty Images
Nvidia’s Foray into the Robotics Arena
Shortly after Huang’s revelations on humanoid robots, Nvidia emerged as an investor in a $675 million funding round for Figure AI. Joining forces with Microsoft, OpenAI, Intel, and Jeff Bezos, Nvidia is backing Figure AI’s humanoid robot ventures aimed at sectors such as manufacturing, warehousing, and retail.
Figure AI’s robots are undergoing training utilizing generative AI models to master basic tasks with the goal of disrupting a workforce market valued at a staggering $42 trillion annually.
Nvidia’s Lucrative Prospects
Nvidia stands poised for substantial gains in the realm of robotics. Initially known as a hardware specialist focusing on high-performance GPUs, Nvidia is silently extending its reach beyond compute networking.
Currently sporting an enterprise software and services business with a $1 billion revenue run rate, Nvidia’s ambitions are grand. Yet, this pales in comparison to the $47 billion data center business generated last year.
Seeking to carve a niche in the enterprise software domain, Nvidia has taken strides through investments and partnerships. The company’s collaborations with the likes of Databricks and Snowflake highlight its strategic thrust into diversifying its portfolio.
By straddling both hardware and software domains, Nvidia is strategically positioning itself for long-term growth within the vast AI landscape.
Huang’s breadcrumbs of AI application hints suggest further opportunities for Nvidia. Despite stock gains, the current moment appears opportune for long-term investment in Nvidia.