Nvidia is significantly expanding its presence in what the industry calls Physical AI—artificial intelligence systems that control machines operating in the real world, including robots, self-driving vehicles, drones and manufacturing systems.
According to a Wall Street Journal report, this division already generates approximately $10 billion in annual revenue for the company. Nvidia CEO Jensen Huang projects the sector could grow tenfold over the next decade, identifying industrial robotics as an economic opportunity potentially worth $50 trillion.
China represents a key market in this expansion. Local automotive and robotics companies are deploying Nvidia's platforms, including its Orin and Thor chips, alongside development and simulation tools like Isaac and Cosmos. At the company's recent GTC conference, Nvidia showcased over 100 robotic systems, including a robot built using motion components from Chinese firm Unitree.
This growth is occurring despite U.S. export restrictions on advanced AI chips to China. While Nvidia is working to diversify beyond its data center business, its success in this arena will depend on whether robots and autonomous machines can transition from demonstration products to practical, safe and economically viable solutions at scale.
