Next Big Thing in AI could be physical AI powering robots and cars.

Nvidia and AMD executives say the next wave of AI may shift into the physical world, with Nvidia releasing developer models for robotics and AMD naming physical AI a strategic focus; both firms highlighted new products at CES and analysts noted continued market interest.

Nvidia and AMD executives have suggested that the next major wave of AI may occur in the physical world, where software meets hardware. Nvidia announced new AI models for developers intended to enable robotics applications, and AMD presented data-center, PC and physical AI products at CES. Nvidia's CEO highlighted autonomous vehicles as early beneficiaries, and AMD's CEO said physical AI is a strategic priority. Both firms emphasized new chips and systems at the Las Vegas conference. What we know: - Nvidia released new AI models aimed at unlocking applications in the physical world for robotics and related systems. - Nvidia said its AI-powered driver assistance software will be used in a new Mercedes-Benz car entering production this year, and the company highlighted autonomous driving as an early use case. - AMD told CNBC that physical AI, which underlies machines like humanoid robots and self-driving cars, is a key part of its strategy. - Both Nvidia and AMD showcased AI chips and products at CES in Las Vegas earlier this week. - The article mentions analysts at Wedbush and Bernstein responding positively to Nvidia's vision, and a Visible Alpha survey reporting analysts remain largely upbeat about the companies. Summary: Physical AI — systems that let machines operate and make decisions in the real world — is being presented by major chipmakers as a likely next phase of AI, with immediate focus on robotics and autonomous driving. Near-term developments cited include new developer models from Nvidia, a Mercedes-Benz production vehicle using Nvidia driver assistance software, and AMD's product announcements at CES. Market commentators and analyst surveys mentioned in the article show continued attention to these developments and to the companies involved.