Nvidia forecasts physical AI could surpass digital AI by 10x

Nvidia’s CEO Jensen Huang is placing a massive bet on robots, autonomous vehicles, and industrial machines, predicting that the market for physical AI will eventually be ten times larger than its digital counterpart. The company currently generates roughly $10 billion annually from physical AI, and Huang expects that figure to hit $100 billion within the next decade. To put that growth trajectory in perspective, Nvidia’s entire data center business, the profit engine that turned the company into a multi-trillion-dollar behemoth, generates over $115 billion per year. Physical AI, if Huang’s projections hold, would approach that scale on its own. The gap between ambition and reality Right now, physical AI contributes less than 3% of Nvidia’s total revenue. The data center segment, powered by insatiable demand for chips to train and run large language models, accounts for over 89%. Huang has estimated the global market for industrial robotics and physical AI at roughly $50 trillion. PwC’s Strategy& division has offered a more conservative but still eye-popping estimate of around $490 billion by 2030. The comments surfaced across several public appearances between late July and lat...