Nvidia GPUs Fuel Figure AI's Rise in Humanoid Robotics

In the high-stakes world of humanoid robotics, two titans are locked in a battle for dominance: Jeff Bezos-backed Figure AI and Elon Musk's Tesla. At the heart of this competition lies Nvidia's cutting-edge GPUs, which are powering Figure AI's rapid ascent and challenging Tesla's Optimus robot. This is a story of technological prowess, fierce competition, and the ethical dilemmas that arise when innovation meets the workforce.

Figure AI, founded less than three years ago, has made remarkable strides in developing humanoid robots. CEO Brett Adcock credits Nvidia's technology for much of their success. "We use Nvidia in two ways today," Adcock explained. "We use both for training new models that we do quite a lot now and for on-board inference." This dual use of Nvidia's technology allows Figure AI to create advanced models that can reason like humans and command actions from the robots effectively.

The use of Nvidia's technology for training new models is essential for creating sophisticated AI systems that can handle complex tasks. Adcock emphasized the importance of this by saying, "We need some sort of way to command actions out of the robot." This capability is crucial for the operational efficiency of humanoid robots, as it enables them to perform tasks autonomously and accurately.

In addition to training models, Nvidia's technology is also used for on-board inference, which allows the robots to process and act on data in real-time. This is particularly important for humanoid robots that need to interact with their environment and make decisions quickly. Adcock praised Nvidia's technology, stating, "I think they’re great. [Nvidia CEO] Jensen Huang is a great guy and the team has been supportive." This support from Nvidia has likely contributed to Figure AI's rapid progress, as the company has developed two versions of its humanoid robots and created a foundation model called Helix AI designed to reason like humans.

Figure AI's competitive advantage over Tesla's Optimus lies in its vertical integration and the tight coordination between hardware and AI. Adcock believes that successful humanoid robots require this level of integration, which Figure AI has achieved through its use of Nvidia's technology. In contrast, Tesla's Optimus has been in development for two years, and while it has made progress, it may not yet have the same level of integration and operational efficiency as Figure AI's robots.

Furthermore, Figure AI's recent valuation of $39.5 billion and its ability to ship robots to commercial customers demonstrate the company's success in leveraging Nvidia's technology. This success is further validated by the $675 million in funding that Figure AI recently secured from investors including Microsoft Corp., OpenAI, and Jeff Bezos. This investment highlights the confidence that industry leaders have in Figure AI's technology and its potential to compete with Tesla's Optimus.



However, the rapid technological advancements and intense competition in the humanoid robotics sector present several potential risks and challenges. One of the primary challenges is the significant technical hurdles involved in developing humanoid robots that can perform complex tasks reliably. As Whitney Rockley, co-founder and managing partner of Toronto-based venture capital firm McRock Capital, noted, "It’s taken decades for robotics engineers to develop robots that can walk effectively on two legs or reliably manipulate small objects." This highlights the complexity and the long-term nature of the development process, which can be a deterrent for investors seeking quicker returns.

Another risk is the intense competition within the sector. Tesla CEO Elon Musk has been vocal about his company's ambitions in the humanoid robotics space, stating that "humanoid robots may be a trillion-dollar market" and that Tesla's Optimus robots would be used in its offices by 2025. This competitive landscape means that companies like Figure AI, which has developed two versions of its humanoid robots and a foundation model called Helix AI, must continuously innovate to stay ahead. Figure AI CEO Brett Adcock emphasized the importance of vertical integration, suggesting that "successful humanoid robots require tight coordination between hardware and AI," which adds another layer of complexity and cost to the development process.

Additionally, the potential for job displacement due to the deployment of humanoid robots in various industries poses a significant social and political challenge. As Jeff Cardenas, co-founder and CEO of the Texas-based humanoid robot startup Apptronik, pointed out, "The potential loss of wages for real humans is more problematic, from a social and political point of view." This could lead to regulatory hurdles and public backlash, further complicating the commercialization of humanoid robots.

Moreover, the high valuation and significant funding rounds for companies like Figure AI, which recently secured $675 million in funding from investors including Microsoft Corp., OpenAI, and Jeff Bezos, indicate the high stakes and expectations in the sector. However, such high valuations also come with the risk of overhyping and potential market corrections if the technology does not deliver on its promises as quickly as anticipated.

In summary, the potential risks and challenges associated with investing in the humanoid robotics sector include the technical complexity of developing reliable humanoid robots, intense competition among key players, the social and political implications of job displacement, and the high expectations and valuations that come with significant investments. As the battle between Figure AI and Tesla heats up, the future of humanoid robotics hangs in the balance, with Nvidia's GPUs playing a crucial role in determining the outcome.