Alex de Vigan, CEO at Nfinite, building large-scale 3D visual datasets to train Physical AI for retail, e-commerce & real-world AI.
The AI investment landscape is approaching an inflection point. Investors have poured hundreds of billions of dollars into companies focused on language-driven AI, from chatbots to generative text platforms. Yet, as powerful as these tools are, language alone can’t deliver the full promise of artificial general intelligence (AGI). The next significant breakthroughs will be spatial, not textual.
Physical AI: The Next Frontier Of AI
Spatial intelligence (or physical AI)—the ability for AI systems to perceive, understand and interact meaningfully with the three-dimensional physical world—represents the next frontier in AI innovation. Unlike language models, which feed ravenously on text-based datasets, spatially intelligent systems require robust, multidimensional data capable of capturing real-world complexity and nuance.
Consider autonomous vehicles, robotic surgery or precision agriculture. Each of these applications depends fundamentally on accurate spatial awareness. Without a clear understanding of space, even the most advanced AI models remain limited, confined to tasks involving abstract data rather than physical interactions.
Why Spatial Intelligence Matters To Investors
AI investments have prioritized large language models, often overlooking the critical spatial dimension required for real-world applications. However, as enterprises increasingly demand AI solutions that drive tangible outcomes, investors’ focus must shift to companies building sophisticated spatial infrastructures.
Physical/spatial AI requires more than algorithmic advancements. It demands entirely new types of data infrastructures. High-fidelity 3D datasets, precise digital twins and sensor fusion technologies are becoming the essential building blocks for the next generation of intelligent systems. Forward-thinking investors are already noticing this trend, positioning themselves to capitalize on an emerging ecosystem of spatial intelligence providers.
Lessons From Physical AI Leaders
Leading tech players, including NVIDIA, Meta and Apple, recognize physical AI as foundational to their future. NVIDIA’s Omniverse platform exemplifies how sophisticated 3D environments and digital twins enable robust spatial intelligence capabilities across industries like manufacturing, logistics and healthcare.
Similarly, innovative startups are carving out niches by delivering specialized 3D datasets and sensor-driven analytics tailored to sectors ranging from retail to aerospace. These companies aren’t merely digitizing reality; they’re creating the infrastructure upon which true physical intelligence will depend.
Implications For Venture Capital And M&A
Investors evaluating AI startups or acquisitions must now look beyond language models and traditional data to understand a company’s readiness for the spatial intelligence era. Key evaluation criteria will increasingly include:
• Quality and scale of spatial data assets
• Technical expertise in sensor integration and real-time spatial analytics
• Partnerships and strategic alliances to ensure access to high-quality physical data
Companies that invest early in physical AI infrastructure and talent could hold a substantial competitive advantage as the AI market shifts from purely digital interactions to robust physical-world engagement.
Preparing For The Shift
Investors should start asking critical questions now: How well-positioned is our portfolio to thrive in a spatially intelligent AI market? Are the companies we support equipped to collect, manage and leverage high-quality 3D physical data? And, crucially, are we actively seeking opportunities aligned with this next stage of AI evolution?
The real AI revolution isn’t just about understanding words; it’s about comprehending and navigating space. For investors who grasp this shift early, the rewards could be transformative.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
