Gather AI has secured a $40 million Series B led by Smith Point Capital, the firm of former Salesforce co-CEO Keith Block, bringing its total funding to $74 million. The round validates the Carnegie Mellon-founded startup’s Physical AI platform, which uses classical Bayesian techniques—not LLMs—to power autonomous systems that actively map and monitor warehouse operations.

This investment marks a critical inflection point for AI infrastructure, shifting focus from purely digital, text-generating agents to systems that must operate reliably in the physical world. As enterprises seek to scale automation beyond the data center, a new class of Physical AI infrastructure is emerging to solve the critical bottlenecks of real-world deployment across logistics, manufacturing, and field services.

Waabi secured $1 billion in total funding this week—including a $750 million Series C round co-led by Khosla Ventures and G2 Venture Partners, plus milestone-based investment tied to its robotaxi partnership with Uber—marking one of the largest funding rounds in Canadian tech history.

The Toronto-based company represents a critical infrastructure shift: while most AI agent development has focused on digital environments, Waabi’s Physical AI platform bridges autonomous agents into real-world deployment at enterprise scale. This funding validates Physical AI as the next major infrastructure category, where agents must navigate safety-critical environments rather than just process digital workflows.

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.