What Is Physical AI?

Bilal Zuberi says physical AI is the third bucket on the chart Jensen Huang put up in January 2025, next to AI and energetic AI. Jensen's picture is narrower, mostly robotics and autonomy. The Red Glass Ventures thesis is wider. It is AI and the physical world: the table, the glass, the food, the energy people use, the industrially made products, and defense.

Turner Novak asks what people get wrong when the investment is not software. Eighteen months earlier, when Bilal was telling limited partners he might raise a fund, many of them said they had never invested there. They called it capital intensive and said only a large fund could write big checks and hold the positions. That resistance flipped, and everybody wants in. What newer investors still miss is go-to-market. Customers in these industries decide slowly, their incentives protect market share more than they chase a better product, and they push the risk onto a young company that takes it. A company can feel like a big idea while the practicality is missing.

He still wants change-the-world companies the rest of the investor ecosystem will join at later stages, and founders who understand how to turn a startup into a business. He does not treat the category as a niche.