Archetype AI has secured $35 million in Series A funding led by IAG Capital Partners and Hitachi Ventures to scale its Newton Physical AI platform. The round addresses a fundamental infrastructure bottleneck: while AI agents excel in digital environments, they remain blind to physical operations that generate trillions in economic value across manufacturing, logistics, and public safety.

This funding validates the emergence of Physical AI as a distinct infrastructure category, where agents must process multimodal sensor data, video streams, and environmental context to enable real-world automation beyond traditional screen-based workflows.

Foxglove raised $40 million in Series B funding led by Bessemer Venture Partners to expand its data and observability platform for Physical AI, addressing a critical infrastructure bottleneck as robotics companies scale autonomous systems from prototypes to production deployments.

The funding reflects growing recognition that Physical AI—robots operating in real-world environments—requires fundamentally different data infrastructure than software-only AI systems. While software ate the digital world, the physical world has remained largely unchanged, but breakthrough convergence in foundation models, sensor technology, and edge computing has created an inflection point for autonomous systems in manufacturing, logistics, transportation, agriculture, construction, aerospace, and defense.