Prime Highlights:
Nvidia is betting on robotics as its next major growth driver and is looking to lead the robotics revolution with its full-stack solutions-from AI training software to robot chips.
The company will soon introduce its next-generation humanoid robot computers, Jetson Thor, in mid-2025 and marks a significant push into the robotics market.
Nvidia is also coming under the pressure of extremely recent competition from companies such as AMD and technology giants Amazon, Microsoft, and Google, that are developing AI infrastructures.
Key Background:
Nvidia is making itself at the vanguard of a growing robotics revolution as it looks to diversify its business out of a competitive artificial intelligence (AI) chip-making space. The US-headquartered semiconductor giant, whose processors powered the AI boom, is placing its bets on robotics as a key area of growth. The firm is planning to announce its new generation of tiny computers for humanoid robots mid-2025 called Jetson Thor, according to reports.
Nvidia is set to center its strategy based on providing a “full stack” robotics solution including the software needed to train AI-based robots and the hardware part itself, which in this case refers to chips. The plan seems to be making what it is impossible for human kind possible in robots, and what this marks is an important turning point in the world of physical AI. Deepu Talla, VP of Nvidia Robotics, believes that the robotics market is on the verge of a significant shift, saying “that’s the ChatGPT moment for physical AI”.
The move into robotics is very timely because the company has experienced increased competition in its core AI chip market. The biggest competitors include AMD and other technology companies like Amazon, Microsoft, and Google, which are venturing into AI infrastructure to cut dependence on Nvidia’s chips. The increased demand for AI GPUs pushes up the value of Nvidia’s stock, and the company invests in the physical AI space to foster the next wave of robotics innovation.
The field of robotics is still quite young, and as yet has yielded no significant returns. Nevertheless, Nvidia has made enormous investments in the sector. The company, in fact, is part of a $2.6 billion funding round in Figure AI, a company building humanoid robotics. Though the revenues Nvidia earns from robotics are not specified separately, it is relatively a minor percentage of the company’s total sales since the revenue from data center revenue, which includes AI GPUs, stands at around 88% of the third-quarter revenue of $35.1 billion.
Talla credits the current impetus of robotics to two technological breakthroughs: generative AI models and simulated environments for training robots. It is helping to bridge the “Sim-to-Real gap,” which means the robots that are trained on virtual environments can work successfully in real life.
According to market researchers, the robotics market is estimated at around $78 billion. The industry is expected to grow until it reaches approximately $165 billion by 2029. Such recognition of the market and usage of the technology by companies like Amazon, Toyota, and Boston Dynamics validate its growth and potential as a leading player in the space. However, according to experts like David Rosen, director of the Robust Autonomy Lab at Northeastern University, “Problems abound, especially in the case of safety and dependability when it comes to using AI-driven robots in everyday situations.” Here’s how Nvidia’s big push into robotics demonstrates how it aims to build up its dominance in the new world of AI-driven technology beyond its old chip business.
