Overview

Overview

THE BIG PICTURE

How Atomgigs works: sources, catalysts and buyers

Atomgigs does not build machines. It helps makers go to market, advises buyers and delivers work done and data.

Sources (3)Where the machines and people come from
We offer
  • Go-to-market: where, how and to whom
  • Gigs: jobs for their machines and talent

Paid by Makers: GTM fees; buyers: per gig

Catalysts (3)Who funds, insures, approves and brings the projects
We offer
  • Advice and investor diligence
  • Project bidding and execution

Paid by Catalysts: advice, projects

Numbers 01 to 12 are primer numbers: each box has its own detailed primer.

PHYSICAL AI INVESTING AT A GLANCE

Physical AI investing at a glance.

Ten facts that frame the investment landscape.

01

$27B+ in robotics funding

Raised Jan–Sep 2026, above any prior full year; about $15B in 2025 (Crunchbase).

02

The pace is rising

$9.9B raised in Q3 2026 alone, against $4.3B in Q3 2025 (Crunchbase).

03

603,307 robots installed

Industrial robots installed in 2025, up 11%; 5.08M now work in factories.

04

China leads installs

354,000 of 603,000, or 59%; the U.S. is second with 38,400.

05

$720B+ of data center capex

Four hyperscalers’ 2026 outlooks, against about $450B in 2025.

06

$61B for Anduril

Defense autonomy draws the largest rounds; defense tech raised $8.5B in 2025.

07

Price runs ahead of revenue

Agility priced at $2.5B with $1.8M revenue; ABB Robotics agreed at about 2.3x sales.

08

Listings have begun

Unitree listed in Aug 2026; Agility began trading on Nasdaq (AGLT) on 5 Nov 2026.

09

Strategic buyers lead exits

AeroVironment paid $4.1B for BlueHalo; Mobileye paid $900M for Mentee.

10

Failure is real

K-Scale shut in Nov 2025 with about $400,000; hardware margins run in the teens to twenties.

Chapter 1

The physical AI investment landscape

Why now, capital flows and valuations, where the gaps are, business models, exits and m&a, common failure modes.

SUB-CHAPTER 1.1

Why now

Capital, installed robots, compute and labor: four forces behind the surge.

Capital has arrived in robotics.

9

Compute spending is the largest capital wave.

12

Factories installed a record 603,000 robots.

10

Factory and warehouse labor is short.

13

Service robots grew 24% in 2025.

11

Defense and dual-use set the pace.

14

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.1 WHY NOW

Capital has arrived in robotics.

Venture funding to robotics startups, global (Crunchbase).

$27B+

Raised by robotics startups in Jan–Sep 2026, above any prior full year

~$15B

Raised in full-year 2025, the previous record

$14.1B

Raised in 2021, the earlier peak

40%+

Share of 2025 robotics funding that went to ten companies (to Sep 2025)

  • 2026 passed all of 2025 before midyear.
  • Rounds are larger: ten companies took over 40% of 2025 funding.
  • Humanoids, robot intelligence and defense autonomy lead.

What it shows

  • A few mega-rounds set prices for the whole sector.
  • The middle of the market is under-covered.
  • Diligence matters more as prices rise.

What it means for you

Capital is arriving faster than proof of deployment, which is the case for diligence.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.1 WHY NOW

Factories installed a record 603,000 robots.

Industrial robot installations and forecast.

603K

Industrial robots installed in 2025, up 11%

5.08M

Robots at work in factories, up 9%

655K

Forecast installations for 2026

806K

Forecast installations for 2029

  • China installed 354,000, 59% of the world.
  • The U.S. installed 38,400 and passed Japan to rank second.
  • The EU installed 60,500, down 11%.

Where demand sits

  • The installed base keeps growing, about 7% a year to 2029.
  • General-purpose physical AI is not yet industry-grade; arms and mobile robots earn today.
  • Service and upgrade work follows the installed base.

What it means for you

Proven robots already sell in the hundreds of thousands; new classes must still earn their place.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.1 WHY NOW

Service robots grew 24% in 2025.

Professional service robot shipments, global.

~250K

Professional service robots shipped in 2025

117K

Transport and logistics robots, the top application

+24%

Growth in professional service robot shipments

~7,000

Full-size professional humanoids sold in 2025 (IFR)

  • Logistics leads; hospitality and cleaning rank next.
  • Robots as a service is gaining ground and is the common model in the U.S.
  • Humanoids are the newest market and still small.

Reading the data

  • Service operators already buy robots at scale.
  • Humanoid volumes are bets on the next stage.
  • Buyers want outcomes, so pay-per-use contracts grow.

What it means for you

Wheeled service robots are the volume today; humanoids are an option on tomorrow.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.1 WHY NOW

Compute spending is the largest capital wave.

Planned 2026 capital spending, four largest hyperscalers.

Company2026 capital spending outlookNote
Amazonabout $220BQ3 purchases of property and equipment: $77.3B
Alphabet$195B to $205BRaised in July from $180B to $190B
Microsoftabout $170BTrimmed from $175B in Oct 2026
Meta$135B to $145BLow end raised in Oct; equity raise launched
Four companiesMore than $720BAgainst about $450B spent in 2025

What it means for physical AI

  • Data centers need power, cooling and construction labor at record scale, which opens work for machines.
  • Spending is shifting to debt and equity: Alphabet’s free cash flow was negative $9.1B in Q3 2026.

The largest capital wave in technology is building physical sites, and sites need physical AI.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.1 WHY NOW

Factory and warehouse labor is short.

Labor supply and cost, and the largest robot fleet.

584K

Open U.S. manufacturing jobs, Sep 2026

$48.62

Pay and benefits per hour worked in manufacturing, Jun 2026

12.7M

U.S. manufacturing workers, Sep 2026

1M+

Robots operating in Amazon facilities

  • Jobs sit open while pay and benefits climb.
  • Labor is the cost line that machines replace first.
  • Payback depends on the wage and on hours the robot works.

The labor gap

  • More than 1M robots across 300+ sites since July 2025.
  • Its newest sites need 30% more reliability, maintenance and engineering staff.
  • People move from carrying to supervising and repairing.

Amazon as proof

Labor scarcity is the demand engine; utilization decides who profits from it.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.1 WHY NOW

Defense and dual-use set the pace.

Funding and valuations in autonomous systems.

$8.5B

Defense tech venture funding in 2025, an all-time high

2x

More than double the 2024 total

$61B

Anduril valuation after its May 2026 round

$5B

Anduril Series H, May 2026, the largest round listed here

CompanyWhat it buildsLatest roundValuation
AndurilAutonomous systems and drones$5B Series H, May 2026$61B
SaronicAutonomous vessels$1.75B Series D, Mar 2026$9.25B
SkydioEnterprise and government drones$110M Series F, Apr 2026$4.4B

Autonomy with a government customer draws the largest private rounds in physical AI.

SUB-CHAPTER 1.2

Capital flows and valuations

How much was raised, who took it and what it was priced against.

Funding has passed every prior year.

16

Capital is concentrated in few deals.

18

A few mega-rounds set the price.

17

Valuation is running ahead of revenue.

19

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.2 CAPITAL FLOWS AND VALUATIONS

Funding has passed every prior year.

Robotics startup venture funding, global (Crunchbase).

PeriodFundingWhat it shows
2021$14.1BThe earlier peak, set in the 2021 venture boom
2025about $15BA new record, up about 70% on 2024
Jan–Sep 2026$27B+Above any prior full year; Q3 alone was $9.9B, against $4.3B a year earlier

How to read the numbers

  • One tracker is used throughout this primer, so years compare like for like.
  • Wider definitions that add AI software report larger totals; all show the same rise and the same concentration.
  • Atomgigs builds company lists by use case and proof level, not by tracker label.

By September, 2026 had passed every earlier year; a few large rounds account for much of it.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.2 CAPITAL FLOWS AND VALUATIONS

A few mega-rounds set the price.

Selected rounds, 2025 and 2026.

CompanySegmentRoundValuationDate
Figure AIHumanoids$1B+ Series C$39BSep 2025
Skild AIRobot intelligence$1.4B$14BJan 2026
AndurilAutonomous defense systems$5B Series H$61BMay 2026
SaronicAutonomous vessels$1.75B Series D$9.25BMar 2026
ApptronikHumanoids$520M extension, $935M Series A in all$5B+Feb 2026
SkydioDrones$110M Series F$4.4BApr 2026

These rounds set the reference prices that the rest of the sector is measured against.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.2 CAPITAL FLOWS AND VALUATIONS

Capital is concentrated in few deals.

Global venture funding, 2025.

$469B

Global venture funding in 2025, up 47%

48%

Share that went to AI companies, a record

65%

Share of all funding taken by mega-rounds

738

Mega-rounds of $100M or more in 2025

  • Robotics startups took about $15B in 2025 and $27B+ in Jan–Sep 2026.
  • Ten robotics companies took over 40% of funding to Sep 2025.
  • Venture deal counts fell 17% while totals rose.

Where this leaves robotics

  • Seed to Series B companies with field proof.
  • Services, integration and operations businesses.
  • Component and supply chain makers.

Where capital is thinner

A crowded top and a thin middle: the case for looking beyond the headline names.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.2 CAPITAL FLOWS AND VALUATIONS

Valuation is running ahead of revenue.

Price against revenue in three transactions.

CompanyEventValueRevenue signal
Agility RoboticsSPAC; listed Nov 2026$2.5B pre-money$1.8M revenue; Digit at 9 sites
SymboticPublic company, NasdaqListed$721M in Q3 FY2026; $22.5B backlog
ABB RoboticsAgreed sale to SoftBank, Oct 2025$5.375B enterprise value$2.3B revenue in 2024
The comparison
  • A mature robot maker with $2.3B revenue was priced at about 2.3 times sales; a humanoid maker with $1.8M revenue priced at $2.5B.
  • Prices reflect the option on future scale. Diligence turns that option into numbers: units, utilization, margin.

Investors underwrite deployments and unit economics, not the demo.

SUB-CHAPTER 1.3

Where the gaps are

Segments, geography and proof levels: where capital is thin.

Where capital goes, and where it does not.

21

Demand is concentrated in Asia.

23

Four gaps worth a closer look.

22

How proven is each machine?

24

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.3 WHERE THE GAPS ARE

Where capital goes, and where it does not.

Atomgigs view of capital and proof by segment.

SegmentCapitalProofAtomgigs view
Robot intelligence (models)Very highEarlyFew winners; hard to diligence from outside
HumanoidsVery highPilotHeavy burn and small revenue; timing is the risk
Defense autonomyVery highCommercialGovernment demand; scale is real
Warehouse and logisticsHighCommercialProven; consolidation and RaaS economics
Industrial armsMatureCommercialChina-led; price pressure
Construction and infrastructureLowEarlyThin capital for site machines and services
Operations and integrationLowEarlyWhere deployment succeeds or fails
Components and supply chainMediumCommercialActuators, sensors, batteries: margin sits here

The least capital sits where deployment is hardest: sites, services and people.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.3 WHERE THE GAPS ARE

Four gaps worth a closer look.

Where Atomgigs sees thin capital and real demand.

  1. 1Deployment and integration

    Most robots fail between purchase and daily use. Integrators and operators are scarce. Few venture-backed pure plays.

  2. 2Field operations

    Uptime, repair and remote supervision recur. Revenue scales with the installed base. Needs trained technicians.

  3. 3Components

    Actuators, sensors, batteries and chips. Much of the supply base sits in Asia. Tariffs and export rules change cost.

  4. 4Site machines

    Machines for construction, data center and infrastructure sites. Harsh, changing environments. Few funded makers; a large buyer base.

Each gap is where Atomgigs works every day: deployment, operations, people and sites.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.3 WHERE THE GAPS ARE

Demand is concentrated in Asia.

Industrial robot installations by region, 2025.

76%

Share of 2025 installs in Asia (457,315 robots)

59%

Share of 2025 installs in China (354,000)

38,400

U.S. installs in 2025, up 12%, now second

60,500

EU installs in 2025, down 11%

  • Chinese makers sold 57% of robots in China in 2024, up from about 28% a decade earlier.
  • Western makers tend to win on software, safety record and service.
  • U.S. and EU buyers add demand for local integration.

Demand

  • The U.S. leads venture funding for humanoids and robot intelligence.
  • China leads installs and now lists robot makers at home.
  • EU installs fell 11%; Germany, the largest EU market, fell 8%.

Capital

Demand is in Asia and the largest private checks are in the U.S.; both shape the market.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.3 WHERE THE GAPS ARE

How proven is each machine?

Proof levels used throughout the Atomgigs primers.

Machine or use caseProofEvidence
Industrial arms in factoriesCommercial603,307 installed worldwide in 2025
Warehouse mobile robots and storage systemsCommercialAmazon runs over 1M; Symbotic has 77 systems in deployment
Professional cleaning and delivery robotsCommercialService robot shipments of about 250,000 in 2025
Inspection and survey dronesCommercialRoutine use under existing FAA rules
Construction layout and drilling robotsEarly commercialGrowing use on large projects; few makers at scale
Humanoids in logistics and factoriesPilotDigit at 9 customer sites; about 7,000 full-size units sold in 2025 (IFR)
General-purpose humanoids at homeConceptEarly demonstrations and pre-orders only

Investors weigh proof level: commercial earns revenue today; pilot earns an option.

SUB-CHAPTER 1.4

Business models

Hardware, robots as a service, services and software, and what drives returns.

Four ways robot companies earn money.

26

Mature automation builds margin slowly.

29

Robots as a service sells labor by the hour.

27

The intelligence layer is a separate bet.

30

Utilization decides who wins.

28

The service burden lands on people.

31

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.4 BUSINESS MODELS

Four ways robot companies earn money.

The revenue lines investors will meet.

  1. 1Hardware sales

    Machines sold or leased. Margin set by the bill of materials. Lumpy revenue; heavy working capital.

  2. 2Robots as a service

    Monthly, per-hour or per-task fees. No capital outlay for the buyer. The maker carries utilization risk.

  3. 3Services attach

    Install, maintain, train and operate. Recurring and sticky. Grows with the installed base.

  4. 4Software and data

    Fleet control, models and analytics. Highest margin once proven. Needs a large fleet to pay.

Look for companies where recurring lines grow faster than one-time hardware sales.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.4 BUSINESS MODELS

Robots as a service sells labor by the hour.

Four common pricing patterns.

PatternHow it is pricedWorks best when
Monthly per robotFlat fee per robotWorkloads are steady and utilization is high
Per hourFee per operating hourDemand varies by shift or season
Per taskPer pick, tote or palletOutput is easy to measure
HybridBase fee plus usageBuyer and maker share the risk

A live example

  • Agility Robotics reports about $300M in potential multi-year contract value for Digit under robots-as-a-service terms.
  • RaaS moves utilization risk from the buyer to the maker, and so to the investor.

RaaS turns a capital sale into a long-dated contract that must be underwritten like a lease.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.4 BUSINESS MODELS

Utilization decides who wins.

The arithmetic behind robots as a service. Typical ballpark values, not quotes.

1,500 h

Break-even hours a year in the illustration

4,000 h

Hours in a two-shift year (8 h x 2 x 250 days)

38%

Utilization needed on two shifts in the illustration

60–70%

Break-even utilization cited for a robot costing about $2 an hour

  • Break-even hours = robot cost per year ÷ loaded wage per hour.
  • Illustration: $60,000 a year ÷ $40 an hour = 1,500 hours.
  • Across 4,000 hours, the robot must work 38% of the time.

The break-even test

  • One analysis finds a robot at about $2 an hour beats U.S. warehouse wages only above 60–70% utilization.
  • Productivity per hour improves with software; cost per hour improves only with hours run.

What the market shows

Ask every company for measured utilization by site, not capacity on paper.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.4 BUSINESS MODELS

Mature automation builds margin slowly.

Symbotic, a leading U.S.-listed warehouse automation company.

$721M

Symbotic revenue, fiscal Q3 2026, up 22%

$22.5B

Symbotic backlog, fiscal Q3 2026

21.2%

Gross margin, fiscal Q1 2026, up from 16.6%

25%

Adjusted gross margin, fiscal Q3 2026

  • Systems revenue grew 20% to $671M.
  • Software revenue grew 57% and operations services 49%.
  • 77 systems are in deployment.

What is working

  • Systems were 94% of fiscal 2025 revenue.
  • Walmart is a large share of revenue.
  • Projects take about two years from announcement to completion.

What to watch

Even a leader in warehouse automation earns most of its revenue from one-time systems.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.4 BUSINESS MODELS

The intelligence layer is a separate bet.

Four layers of the physical AI stack.

  1. 1Body makers

    Humanoids, arms, drones, vehicles. Capital-heavy; thin margins. Examples: Figure, Apptronik, Agility.

  2. 2Brain makers

    Robot foundation models. Skild AI raised $1.4B at $14B. Physical Intelligence builds models, not bodies.

  3. 3Fleet software

    Orchestration, simulation and digital twins. Amazon’s DeepFleet cut fleet travel time about 10%. Platform play with network effects.

  4. 4Integrators and operators

    Install, tune and run the fleet. Where pilots become production. Few funded specialists.

Where value settles is not yet clear, so investors judge each layer on its own evidence.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.4 BUSINESS MODELS

The service burden lands on people.

What it takes to keep robots working.

  • Site survey and layout.
  • Integration with warehouse or building systems.
  • Training, safety sign-off and change management.
  • Maintenance, spares and remote support.

What deployment needs

  • Its newest sites need 30% more staff in reliability, maintenance and engineering.
  • People move from carrying to supervising and repairing.
  • Each robot has a human manager behind it.

What Amazon reports

The people layer is a cost line and a revenue line; both belong in the model.

SUB-CHAPTER 1.5

Exits and M&A

Listings, strategic sales and the buyers consolidating the sector.

Four ways investors get paid.

33

Exit activity is accelerating.

36

Two listings, two tests.

34

What strategic buyers pay for.

37

Strategic buyers are consolidating.

35

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.5 EXITS AND M&A

Four ways investors get paid.

Exit routes with 2025 and 2026 examples.

Route

Recent example

What it needs

IPO

Unitree on the STAR Market, 19 Aug 2026

A market that rewards scale and growth

SPACAgility Robotics via Churchill Capital XI; on Nasdaq (AGLT) since 5 Nov 2026Public-company reporting; about $465M gross proceeds
Strategic saleSoftBank and ABB Robotics, $5.375B; blocked by China in Nov 2026A buyer with a platform thesis and regulatory clearance
Tuck-in acquisitionMobileye buying Mentee Robotics, $900MTechnology a larger firm lacks

Four routes are open today; strategic sales have the longest record.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.5 EXITS AND M&A

Two listings, two tests.

The first pure-play humanoid listings.

  • Listed on Shanghai’s STAR Market on 19 August 2026.
  • Priced at about $9B; closed 460% above the offer on day one.
  • Shares then fell back as investors asked for deliveries and earnings.

Unitree: the full IPO

  • Merger with Churchill Capital XI at $2.5B pre-money; about $465M gross proceeds.
  • Reported $1.8M revenue, with Digit at 9 customer sites.
  • Began trading on Nasdaq as AGLT on 5 Nov 2026.

Agility: the SPAC

Public markets pay for scale in robots, then check for deliveries and earnings.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.5 EXITS AND M&A

Strategic buyers are consolidating.

Selected acquirers and what they bought.

BuyerMoveLogic
SoftBankABB Robotics deal ($5.375B) blocked by China, Nov 2026; stakes in Skild AI, AutoStoreJoin AI models to robot hardware
AmazonKiva Systems in 2012 ($775M); RIVR doorstep robotsOwn the warehouse and delivery stack
HyundaiOwns Boston DynamicsIndustrial and mobility use
MobileyeMentee Robotics, $900MExtend vehicle AI to humanoids
ArcherWisk Aero, Insitu and SkyGrid from Boeing; signed Aug 2026, pendingCombine eVTOL and drone businesses
AeroVironmentBlueHalo, $4.1BBroaden defense autonomy

Strategic buyers with a platform thesis are the most active acquirers.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.5 EXITS AND M&A

Exit activity is accelerating.

Milestones in robotics exits, 2012 to 2026.

  1. 12012

    Amazon buys Kiva Systems for $775M. Warehouse robots become a core asset.

  2. 2Oct 2025

    SoftBank agrees to buy ABB Robotics for $5.375B. Blocked by China’s security review in Nov 2026.

  3. 3Jan 2026

    Mobileye announces Mentee Robotics for $900M.

  4. 4Jun 2026

    Agility Robotics agrees a $2.5B SPAC; listed on Nasdaq in Nov 2026.

  5. 5Aug 2026

    Unitree lists on the STAR Market. Archer signs for Boeing’s Wisk, Insitu and SkyGrid.

Exit activity is accelerating, with three of the five events in the last twelve months.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.5 EXITS AND M&A

What strategic buyers pay for.

The ABB Robotics deal and the traits buyers look for.

$5.375B

Agreed enterprise value, SoftBank and ABB Robotics

$2.3B

ABB Robotics revenue in 2024

12.1%

ABB Robotics operating EBITA margin, 2024

~7,000

ABB Robotics employees

  • Machines running at paying customers.
  • Utilization and uptime data.

Deployments

  • Service, software and RaaS contracts.
  • Backlog with clear conversion.

Recurring revenue

  • Technology or customers the buyer lacks.
  • A team able to operate at scale.

Strategic fit

Buyers pay for installed, earning machines and the teams that run them.

SUB-CHAPTER 1.6

Common failure modes

Eight ways physical AI investments go wrong, with real cases.

Eight ways investments fail.

39

Hardware margins are thin.

42

Failures are real and recent.

40

Safety and regulation shape deployment.

43

From pilot to production: five gates.

41

Supply chain and tariffs raise cost.

44

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.6 COMMON FAILURE MODES

Eight ways investments fail.

Failure modes and the diligence test for each.

Failure modeWhat it looks likeWhat to test
Pilot purgatoryMany pilots, few paid rolloutsPilot-to-production conversion by customer
Hardware marginsGross margin stuck in the teensBill of materials and margin by line
Integration costServices cost exceeds planHours and cost per site
Low utilizationRobots idle on siteMeasured hours run per robot
Safety and certificationDeployment halted or limitedStandards status and incident log
Supply chain and tariffsParts delayed or repricedSource of actuators, sensors and chips
Customer concentrationOne buyer is most of revenueRevenue by customer and contract term
Capital intensityCash runs out before scaleRunway against the deployment plan

Each failure mode maps to a diligence test; Part 3 turns them into a scorecard.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.6 COMMON FAILURE MODES

Failures are real and recent.

Four cases from 2024 and 2025.

Company

What happened

Lesson

K-Scale Labs

Shut down in Nov 2025 with about $400,000 in cash after shipping two K-Bot units; it found no lead investor for its Series A

Hardware takes more capital and time than the pitch assumes

Rethink RoboticsShut down a second time in 2025 after weak sales and investors pulling fundsA good product needs volume and funding
EmbodiedClosed its companion robot business in Dec 2024Consumer robots need a lasting reason to buy
CruiseGM ended funding for the robotaxi unit in December 2024Autonomy at scale burns capital for years

Failure follows funding gaps and hardware reality, not only technology.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.6 COMMON FAILURE MODES

From pilot to production: five gates.

How to tell a pilot from a business.

  1. 1Pilot

    Proves the task works. Metric: success rate.

  2. 2Extended pilot

    Runs on real shifts. Metric: interventions per hour.

  3. 3First site

    Paid and in daily use. Metric: uptime and utilization.

  4. 4Multi-site

    Repeats at new sites. Metric: install time and cost.

  5. 5Fleet

    Runs at scale with service. Metric: margin and payback.

Ask where each customer sits on the ladder; revenue starts at gate three.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.6 COMMON FAILURE MODES

Hardware margins are thin.

Margins at two scaled robot businesses.

CompanyMeasureFigurePeriod
ABB RoboticsOperating EBITA margin12.1%2024
SymboticGross margin16.6%Fiscal Q1 2025
SymboticGross margin21.2%Fiscal Q1 2026
SymboticAdjusted gross margin25.0%Fiscal Q3 2026

What it means

  • Symbotic gained 4.6 points of gross margin in a year, with a $22B backlog behind it.
  • Early hardware makers with small volumes earn less.
  • Margin expansion has to come from software and service lines.

Model hardware margins in the teens to twenties until volume and services prove otherwise.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.6 COMMON FAILURE MODES

Safety and regulation shape deployment.

The main standards and rules investors will meet.

Standard or ruleCoversApplies to
ISO 10218-1 and -2Safety of industrial robots and robot systemsArms and cells
ANSI/A3 R15.06-2025U.S. adoption of the robot safety standardU.S. robot cells
ISO 3691-4Driverless industrial trucksMobile robots and AGVs
ISO 13482Personal care robotsService and care robots
FAA Part 107Small drone operationsCommercial drones
EU Machinery Regulation 2023/1230Machinery, including AI-based safety functionsEU sales; applies from 20 Jan 2027

Standards for humanoids and other dynamically stable robots are still being written.

1 THE PHYSICAL AI INVESTMENT LANDSCAPE · 1.6 COMMON FAILURE MODES

Supply chain and tariffs raise cost.

Where robots and parts come from.

57%

Chinese makers’ share of robot sales in China, 2024

~28%

Their share about a decade earlier

59%

China’s share of 2025 global installs

  • Chinese suppliers are taking share at home and expanding abroad.
  • China installs more than half of the world’s industrial robots.
  • Price pressure reaches Western makers.

What the data shows

  • Where are actuators, sensors, batteries and chips made?
  • How much of the bill of materials is exposed to tariffs or export rules?
  • Is there a second source for each critical part?

What to ask

Supply chain is a margin question and a continuity question; diligence both.

Chapter 2

Sector investment views

The sector map, robotics, OEMS, drones and VTOL, data centers, manufacturing and logistics, construction and infrastructure.

SUB-CHAPTER 2.1

The sector map

Nine sectors side by side, and how to read each view.

Nine sectors, one map.

47

Every view follows five steps.

48

2 SECTOR INVESTMENT VIEWS · 2.1 THE SECTOR MAP

Nine sectors, one map.

Atomgigs focus areas and how investors can read them.

SectorThesisProof todayMain risk
RoboticsLabor scarcity meets proven machinesArms scaled; humanoids pilotPrice pressure and integration cost
OEMs, drones, VTOLFive layers; makers consolidatingDrones commercial; VTOL earlyRules and certification
Data centersPower-limited build-out, record demandOperations robots earlyPower delivery; debt-funded build
Manufacturing, logisticsLabor gap and RaaS economicsStorage and picking commercialLong project cycles
Construction, infrastructureFlat productivity, short laborDrone survey commercialFragmented buyers
Public safety, defenseLarge budgets, autonomy demandDrone first responder commercialTrust and procurement
Commercial servicesTurnover-driven demandCleaning, delivery commercialThin operator margins
ChannelContractors carry machines to projectsContractor trials widespreadContract terms and margin
TalentEvery robot needs a human managerPilot certification establishedWage inflation

Proof differs by sector; commercial earners and options on what is next carry different risks.

2 SECTOR INVESTMENT VIEWS · 2.1 THE SECTOR MAP

Every view follows five steps.

How each sector section is organized.

  1. 1Thesis

    Why the sector attracts capital now.

  2. 2Proof

    What runs in paying use today, and what is still a pilot.

  3. 3Who is building

    Named makers, operators and buyers.

  4. 4Risks

    What has gone wrong, and what could.

  5. 5What to watch

    Signals that would change the view.

Every sector view follows the same five steps, so views can be compared side by side.

SUB-CHAPTER 2.2

Robotics

Arms, mobile robots, storage systems and humanoids.

Robots earn today in factories and warehouses.

50

Robotics in the field.

52

Four tiers of proof in robotics.

51

2 SECTOR INVESTMENT VIEWS · 2.2 ROBOTICS

Robots earn today in factories and warehouses.

Robotics: thesis and evidence.

5.08M

Robots at work in factories

603K

Installed in 2025, a record

59%

China’s share of 2025 installs

~7,000

Full-size humanoids sold in 2025 (IFR)

  • The installed base grows about 7% a year to 2029.
  • Labor is scarce and robots are proven in factories and warehouses.
  • Value is moving from the arm to software, service and fleets.

Thesis

  • Hardware is about half the deployed cost of a mobile robot system.
  • Integration, tooling and safety usually cost more than the arm.
  • Chinese makers sell more than half of the robots in China.

Evidence

Robots that earn today carry the evidence; humanoids are still options. Go deeper: Primer 01 Robotics.

2 SECTOR INVESTMENT VIEWS · 2.2 ROBOTICS

Four tiers of proof in robotics.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Arms: ABB Robotics, FANUC, Yaskawa, KUKA, Universal Robots Storage: Symbotic, AutoStore, Geekplus Humanoids: Agility, Figure, Apptronik, Unitree

  2. 2How proven

    Arms: scaled Storage and picking: commercial Forklifts and unloading: early Humanoids: pilot

  3. 3Main risks

    Price pressure from China Integration cost Thin hardware margins Customer concentration

  4. 4What to watch

    Paid humanoid sites beyond Agility Fleet software revenue Ownership changes among forklift makers Measured utilization

Investors weigh proof level: scaled and commercial earn revenue; pilot earns an option.

2 SECTOR INVESTMENT VIEWS · 2.2 ROBOTICS

Robotics in the field.

Representative machines and sites.

Robot arms on a car body lineScaled and commercial: the proven tier.Photo: BMW Werk Leipzig, CC BY-SA 2.0 DE
Robot arms on a car body lineScaled and commercial: the proven tier.Photo: BMW Werk Leipzig, CC BY-SA 2.0 DE
Storage robots on a gridCommercial in warehouses today.Photo: Euku, CC BY-SA 4.0
Storage robots on a gridCommercial in warehouses today.Photo: Euku, CC BY-SA 4.0
A robot arm on a mobile baseMobile manipulators: early commercial.Photo: Marta Veverica, CC BY-SA 4.0
A robot arm on a mobile baseMobile manipulators: early commercial.Photo: Marta Veverica, CC BY-SA 4.0

Proven machines earn revenue today; new forms are options.

SUB-CHAPTER 2.3

OEMs, drones and VTOL

The non-robot machines and the five layers that make them work.

Drones are commercial; the stack is the opportunity.

54

Drones and VTOL in the field.

56

Drones lead; passenger VTOL still has gates to pass.

55

2 SECTOR INVESTMENT VIEWS · 2.3 OEMS, DRONES AND VTOL

Drones are commercial; the stack is the opportunity.

OEMs, drones and VTOL: thesis and evidence.

$44.4B

Civil drone market, 2026

490K+

FAA-certificated remote (drone) pilots, end-2025

21.1B

Connected IoT devices, end of 2025

$324B

Enterprise IoT market, 2025

  • Five layers turn a machine into finished work: sense, connect, decide, act, twin.
  • Most makers sell one layer; projects need all five.
  • Drones are commercial for inspection, survey and public safety.

Thesis

  • Consolidation has begun: AeroVironment bought BlueHalo for $4.1B; Archer signed for Boeing’s Wisk, Insitu and SkyGrid.
  • Skydio is valued at $4.4B and Anduril at $61B.
  • U.S. rules now bar new foreign-made drones.

Evidence

Finished work comes from joining the layers; look for makers that partner across them. Go deeper: Primer 02 OEMs, Drones and VTOL.

2 SECTOR INVESTMENT VIEWS · 2.3 OEMS, DRONES AND VTOL

Drones lead; passenger VTOL still has gates to pass.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Drones: Skydio, Anduril, DJI VTOL: Joby, Archer Sensors and IoT: many specialist makers

  2. 2How proven

    Inspection and survey drones: commercial Dock-based drones: early commercial Passenger VTOL: early; certification in progress

  3. 3Main risks

    Foreign-made drone rules Certification time for VTOL Fragmented IoT makers Airspace rules

  4. 4What to watch

    Beyond-line-of-sight rules Dock-and-drone contracts Further consolidation Defense orders

Investors look for drone makers with recurring service revenue and a clear path through the rules.

2 SECTOR INVESTMENT VIEWS · 2.3 OEMS, DRONES AND VTOL

Drones and VTOL in the field.

Representative machines and sites.

An enterprise drone in flightInspection and survey drones are commercial.Photo: Oronbb, CC BY-SA 4.0
An enterprise drone in flightInspection and survey drones are commercial.Photo: Oronbb, CC BY-SA 4.0
An electric VTOL aircraftPassenger VTOL is early and still in certification.Photo: U.S. Air Force, Harlan Huntington (public domain)
An electric VTOL aircraftPassenger VTOL is early and still in certification.Photo: U.S. Air Force, Harlan Huntington (public domain)
A drone’s view on an inspection flightDrones capture what people cannot reach safely.Photo: BLM Oregon and Washington, CC BY 2.0
A drone’s view on an inspection flightDrones capture what people cannot reach safely.Photo: BLM Oregon and Washington, CC BY 2.0

Drones earn now; passenger aircraft must still clear the gates.

SUB-CHAPTER 2.4

Data centers

The largest capital program in corporate history, and what it needs on the ground.

Data centers are the largest capital program in tech.

58

Data center sites.

60

Hyperscalers build, operators lease, funds own.

59

2 SECTOR INVESTMENT VIEWS · 2.4 DATA CENTERS

Data centers are the largest capital program in tech.

Data centers: thesis and evidence.

$720B+

Four hyperscalers’ 2026 capex outlook

1.4%

Record-low vacancy, primary markets, H1 2026

80.4%

Of capacity under construction already preleased

~$11M

Building cost per MW, before IT

  • Supply grew 33.7% in a year and vacancy still fell.
  • Power, not land, is the constraint on new capacity.
  • About 20% of spend goes to buildings, power and cooling; 80% to chips, servers and networks.

Thesis

  • U.S. data centers could use about 12% of national electricity by 2030 (LBNL), up from 4–5% in 2024.
  • Hyperscalers are raising debt and equity: capex now outruns cash flow.
  • California now makes data centers pay their own grid costs.

Evidence

Demand is secured by leases; delivery is limited by power, labor and time. Go deeper: Primer 07 Data Centers.

2 SECTOR INVESTMENT VIEWS · 2.4 DATA CENTERS

Hyperscalers build, operators lease, funds own.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Hyperscalers: 28 GW of self-build under construction Operators and colocation: lease capacity Funds: own and finance the assets

  2. 2How proven

    Site build: 2 to 4 years from site to live capacity Inspection, patrol and cable work robots: pilot to early commercial Liquid cooling is spreading as chips run hotter

  3. 3Main risks

    Power delivery delays Tenant concentration Debt-funded build Local ratepayer rules

  4. 4What to watch

    Power-ready sites Preleasing rates Liquid cooling adoption Utility tariffs

Physical AI helps build and run sites faster; the investment case rests on power and tenants.

2 SECTOR INVESTMENT VIEWS · 2.4 DATA CENTERS

Data center sites.

Representative machines and sites.

Server racks in a data hallChips and servers take most of the spend.Photo: BalticServers.com, CC BY-SA 3.0
Server racks in a data hallChips and servers take most of the spend.Photo: BalticServers.com, CC BY-SA 3.0
Cooling plant on a data center roofPower and cooling set the pace.Photo: Rsparks3, CC0
Cooling plant on a data center roofPower and cooling set the pace.Photo: Rsparks3, CC0
A hyperscale data center campusTwo to four years from site to live capacity.Photo: Hay Kranen, CC BY 4.0
A hyperscale data center campusTwo to four years from site to live capacity.Photo: Hay Kranen, CC BY 4.0

Power and build speed decide what gets delivered.

SUB-CHAPTER 2.5

Manufacturing and logistics

Factories, warehouses and freight.

Factories and warehouses are short of people.

62

Factories and warehouses.

64

Warehouse automation is proven; unloading is young.

63

2 SECTOR INVESTMENT VIEWS · 2.5 MANUFACTURING AND LOGISTICS

Factories and warehouses are short of people.

Manufacturing and logistics: thesis and evidence.

$3.0T

U.S. manufacturing value added

12.7M

U.S. manufacturing workers, Sep 2026

584K

Open manufacturing jobs, Sep 2026

$2.4T

U.S. business logistics costs, 2025

  • Labor is the cost line machines replace first.
  • Storage, picking and palletizing systems are proven.
  • Robots as a service lowers the buyer’s capital outlay.

Thesis

  • Amazon runs more than 1M robots across 300+ sites.
  • Symbotic carries a $22.5B backlog but earns most revenue from one-time systems.
  • Projects take about two years from announcement to completion.

Evidence

Proven systems with recurring service lines carry the evidence; utilization is the test. Go deeper: Primer 08 Manufacturing and Logistics.

2 SECTOR INVESTMENT VIEWS · 2.5 MANUFACTURING AND LOGISTICS

Warehouse automation is proven; unloading is young.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Storage and picking: Symbotic, AutoStore Mobile robots: Geekplus, Amazon (in-house) Arms and cobots: ABB Robotics, Universal Robots

  2. 2How proven

    Storage and palletizing: commercial Picking robots: commercial Forklift autonomy and unloading: early

  3. 3Main risks

    Capex cycles Long project cycles Customer concentration Integration cost

  4. 4What to watch

    Backlog conversion Software and service growth RaaS adoption Labor cost trend

Look for backlog that converts and revenue that recurs.

2 SECTOR INVESTMENT VIEWS · 2.5 MANUFACTURING AND LOGISTICS

Factories and warehouses.

Representative machines and sites.

Automated vehicles moving goodsWarehouse mobile robots are commercial.Photo: ek robotics GmbH, CC BY-SA 4.0
Automated vehicles moving goodsWarehouse mobile robots are commercial.Photo: ek robotics GmbH, CC BY-SA 4.0
A robot arm palletizing boxesPalletizing is proven.Photo: Killgore1138, CC0
A robot arm palletizing boxesPalletizing is proven.Photo: Killgore1138, CC0
A distribution center interiorAutomation-ready space is in demand.Photo: Nick Saltmarsh, CC BY 2.0
A distribution center interiorAutomation-ready space is in demand.Photo: Nick Saltmarsh, CC BY 2.0

Proven systems with recurring revenue come first.

SUB-CHAPTER 2.6

Construction and infrastructure

Buildings, networks and utilities.

Construction is big, risky and short of workers.

66

Machines on the job site.

68

Survey is commercial; machines on site are early.

67

2 SECTOR INVESTMENT VIEWS · 2.6 CONSTRUCTION AND INFRASTRUCTURE

Construction is big, risky and short of workers.

Construction and infrastructure: thesis and evidence.

$2.19T

U.S. construction spending, Sep 2026, annual rate

349K

Net new construction workers needed in 2026 (ABC)

~10%

Productivity gain 2000 to 2022; whole economy about 50%

79%

Surveyed contractors using jobsite robots

  • Productivity has barely moved in 22 years.
  • Work repeats and follows a model: layout, drilling, survey, inspection.
  • Design-build is heading for half of U.S. spending.

Thesis

  • One in five U.S. workplace deaths is in construction: 1,034 in 2024.
  • Spending fell 2.7% in the latest year.
  • Data centers and power lead growth, where trades are scarcest.

Evidence

The labor gap and flat productivity make buyers open to machines. Go deeper: Primer 09 Construction and Infrastructure.

2 SECTOR INVESTMENT VIEWS · 2.6 CONSTRUCTION AND INFRASTRUCTURE

Survey is commercial; machines on site are early.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Layout and drilling robots Drones for survey and progress capture Autonomous equipment makers

  2. 2How proven

    Drone survey: commercial Layout and drilling: early commercial Autonomous earthmoving: early Humanoids on site: pilot

  3. 3Main risks

    Fragmented buyers Thin contractor margins Slow project-by-project adoption Safety and liability

  4. 4What to watch

    Design-build share Data center and power projects Contractor adoption surveys Insurance and safety rules

The stronger companies sell through contractors and measure hours saved per project.

2 SECTOR INVESTMENT VIEWS · 2.6 CONSTRUCTION AND INFRASTRUCTURE

Machines on the job site.

Representative machines and sites.

A legged robot with a sensor payloadProgress capture and inspection.Photo: Tore Danielsson (WMSE), CC BY-SA 4.0
A legged robot with a sensor payloadProgress capture and inspection.Photo: Tore Danielsson (WMSE), CC BY-SA 4.0
A tower crane on a building siteThe site where layout and drilling robots must fit.Photo: PortlandAppraisalBlog, CC BY-SA 4.0
A tower crane on a building siteThe site where layout and drilling robots must fit.Photo: PortlandAppraisalBlog, CC BY-SA 4.0

Survey is commercial; machines on site are early.

SUB-CHAPTER 2.7

Public safety and defense

Fragmented public safety and concentrated defense money.

Defense is concentrated; public safety is fragmented.

70

Public safety machines.

72

Some jobs are proven, others are pilots.

71

2 SECTOR INVESTMENT VIEWS · 2.7 PUBLIC SAFETY AND DEFENSE

Defense is concentrated; public safety is fragmented.

Public safety and defense: thesis and evidence.

$839B

FY2026 U.S. defense appropriations

~17,500

State and local law enforcement agencies

1,000+

Agencies cleared for drone first-responder flights

$61B

Anduril valuation, May 2026

  • Large budgets and recruiting gaps push buyers to autonomy.
  • Drone first responder and hazardous-entry robots are commercial.
  • Defense autonomy draws the largest private rounds in physical AI.

Thesis

  • Defense tech raised $8.5B in 2025, more than double 2024.
  • SBIR and STTR reopened in April 2026.
  • 50+ U.S. communities ended or switched off police camera contracts in 2026.

Evidence

Trust and procurement set the pace more than technology does. Go deeper: Primer 10 Public Safety and Defense.

2 SECTOR INVESTMENT VIEWS · 2.7 PUBLIC SAFETY AND DEFENSE

Some jobs are proven, others are pilots.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Anduril, Saronic, Skydio, AeroVironment Drone first-responder platforms Hazardous-entry and patrol robot makers

  2. 2How proven

    Drone as first responder: commercial Hazardous entry and EOD support: commercial Patrol robots: early commercial Depot inspection and maintenance: pilot

  3. 3Main risks

    Trust, privacy and civil liberties Long procurement cycles Foreign-made drone rules Cyber and export rules

  4. 4What to watch

    Grants and contract vehicles Community-control laws SBIR and STTR awards Defense autonomy rounds

Investors look for a government customer, a compliance record and a trust program.

2 SECTOR INVESTMENT VIEWS · 2.7 PUBLIC SAFETY AND DEFENSE

Public safety machines.

Representative machines and sites.

A police bomb squad robotHazardous-entry robots are commercial.Photo: Tomás Del Coro, CC BY-SA 2.0
A police bomb squad robotHazardous-entry robots are commercial.Photo: Tomás Del Coro, CC BY-SA 2.0
A drone pilot surveying a floodDrones extend first responders’ reach.Photo: Richard Humphrey, CC BY-SA 2.0
A drone pilot surveying a floodDrones extend first responders’ reach.Photo: Richard Humphrey, CC BY-SA 2.0

Some jobs are proven, others are pilots.

SUB-CHAPTER 2.8

Commercial services

Healthcare, hospitality, real estate, food, agriculture, retail and waste.

Service work turns over fast, so robots pay back.

74

Service robots at work.

76

Four service robot types are commercial.

75

2 SECTOR INVESTMENT VIEWS · 2.8 COMMERCIAL SERVICES

Service work turns over fast, so robots pay back.

Commercial services: thesis and evidence.

137M

U.S. jobs in service-providing industries, Sep 2026

~250K

Professional service robots shipped in 2025

47%

Share of units in transport and logistics

29.2%

Turnover of on-site apartment staff, 2025

  • Service work is the largest labor pool and turns over fast.
  • Delivery, floor cleaning, disinfection and guidance robots are commercial.
  • Robots as a service is the common U.S. model.

Thesis

  • A robot pays back when freed hours are worth more than its monthly cost.
  • Illustration: $1,000 a month ÷ 40 hours = break-even at $25 an hour loaded.
  • Guests and patients accept machines that help quietly.

Evidence

Operators already buy at scale; makers sell outcomes by the hour or the task. Go deeper: Primer 11 Commercial Services.

2 SECTOR INVESTMENT VIEWS · 2.8 COMMERCIAL SERVICES

Four service robot types are commercial.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Cleaning, delivery and disinfection robot makers Hospitality guide and telepresence makers Kitchen and agriculture robot makers

  2. 2How proven

    Delivery, cleaning, disinfection, guidance: commercial Kitchen, harvesting: early commercial Companion robots: pilot Humanoids: pilot

  3. 3Main risks

    Slow operator buying Brand and privacy Utilization on thin margins Humanoid hype

  4. 4What to watch

    Pilot-to-rollout rates RaaS contract terms Hospital and hotel chains Standards such as ISO 13482

Look for operators who measure hours freed and turnover avoided.

2 SECTOR INVESTMENT VIEWS · 2.8 COMMERCIAL SERVICES

Service robots at work.

Representative machines and sites.

A sidewalk delivery robotDelivery robots are commercial.Photo: Mbrickn, CC BY-SA 4.0
A sidewalk delivery robotDelivery robots are commercial.Photo: Mbrickn, CC BY-SA 4.0
A cleaning robot at an airportCleaning robots are commercial in large buildings.Photo: Syced, CC0
A cleaning robot at an airportCleaning robots are commercial in large buildings.Photo: Syced, CC0

Operators that measure hours freed see the payback.

SUB-CHAPTER 2.9

Channel

The contractors and integrators who take machines to projects.

Contractors carry machines to projects.

78

Where machines meet contractors.

80

Four places a machine scope can sit.

79

2 SECTOR INVESTMENT VIEWS · 2.9 CHANNEL

Contractors carry machines to projects.

Channel: thesis and evidence.

$2.19T

U.S. construction spending, Sep 2026, annual rate

11.8%

Growth of the largest contractors in 2025

79%

Surveyed contractors using jobsite robots

349K

Workers the industry must add in 2026

  • Contractors and integrators are the route to market for machines on projects.
  • Atomgigs sits between the machine maker and the project, so the client deals with one team.
  • A machine scope is a specialty scope inside a contract form the contractor already uses.

Thesis

  • Design-build is becoming the default.
  • A few hundred firms shape most large projects; thousands of specialty firms build them.
  • The fastest-growing firms build data centers and power.

Evidence

A strong channel multiplies a machine maker’s reach without multiplying its sales cost. Go deeper: Primer 06 Channel Partners.

2 SECTOR INVESTMENT VIEWS · 2.9 CHANNEL

Four places a machine scope can sit.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Large general contractors Specialty trade contractors Design-builders and engineers

  2. 2How proven

    Contractor trials are widespread Pay for capacity and outcomes: no capital outlay for machines Partnership models are defined

  3. 3Main risks

    Contractor margin Contract terms and liability Project-by-project sales Partner concentration

  4. 4What to watch

    Backlog growth Partner adoption Delivery method mix Owner mandates

Channel strength is a diligence question: who sells the machine, and who runs it?

2 SECTOR INVESTMENT VIEWS · 2.9 CHANNEL

Where machines meet contractors.

Representative machines and sites.

A large building project in a cityContractors carry machines to projects.Photo: Flocci Nivis, CC BY 4.0
A large building project in a cityContractors carry machines to projects.Photo: Flocci Nivis, CC BY 4.0
A legged robot on rough groundMachine scopes sit inside a contractor contract.Photo: Jonte, CC BY-SA 4.0
A legged robot on rough groundMachine scopes sit inside a contractor contract.Photo: Jonte, CC BY-SA 4.0

The channel decides how fast a machine reaches projects.

SUB-CHAPTER 2.10

Talent

The people who run, repair and supervise machines.

Every robot needs a human manager.

82

The people who run the machines.

84

Skills in short supply, and their proof.

83

2 SECTOR INVESTMENT VIEWS · 2.10 TALENT

Every robot needs a human manager.

Talent: thesis and evidence.

490K+

FAA-certificated remote (drone) pilots, end-2025

349K

Workers construction must add in 2026

30%

More reliability and maintenance staff at Amazon’s newest sites

29.2%

Turnover of on-site apartment staff, 2025

  • The scarce skills are technicians, remote pilots, integrators and supervisors.
  • Talent is a cost line, a revenue line and a limit on scale.
  • Humans in the lead, physical AI in the loop.

Thesis

  • Amazon moves people from carrying to supervising and repairing.
  • Atomgigs brings vetted contract experts to client sites.
  • Training and staffing businesses that serve robot fleets are early and thinly funded.

Evidence

Scale depends on people; companies that train and retain them hold an edge. Go deeper: Primer 03 Talent.

2 SECTOR INVESTMENT VIEWS · 2.10 TALENT

Skills in short supply, and their proof.

Who is building, how proven, risks and signals.

  1. 1Who is building

    Technicians and maintainers Remote pilots and fleet supervisors Integration engineers

  2. 2How proven

    Remote pilot certification: established Robot technician pathways: early Fleet supervision roles: new

  3. 3Main risks

    Wage inflation Slow certification Turnover Key-person dependence

  4. 4What to watch

    Community college and union programs Technician wage trend Service attach rates Staffing models

Ask every company who runs its machines in the field, and how they are trained.

2 SECTOR INVESTMENT VIEWS · 2.10 TALENT

The people who run the machines.

Representative machines and sites.

A college robotics training labTechnicians and integrators learn on real robots.Photo: COD Newsroom, CC BY 4.0
A college robotics training labTechnicians and integrators learn on real robots.Photo: COD Newsroom, CC BY 4.0
A drone pilot preparing a flightRemote pilots and supervisors are scarce skills.Photo: dronepicr, CC BY 2.0
A drone pilot preparing a flightRemote pilots and supervisors are scarce skills.Photo: dronepicr, CC BY 2.0

Every robot needs a human manager.

SUB-CHAPTER 2.11

Real assets

What physical AI does to data center, industrial and infrastructure property.

Physical AI changes what property needs.

86

Property for physical AI.

88

Four questions for a real asset review.

87

2 SECTOR INVESTMENT VIEWS · 2.11 REAL ASSETS

Physical AI changes what property needs.

Effect on four asset types.

Asset typeWhat physical AI changesWhat to watch
Data centersFaster, repeatable builds and robot-assisted operationsPower-ready capacity; liquid cooling
Industrial and logisticsAutomation-ready space: clear height, floor loading, powerTenant automation plans
InfrastructureDrone inspection and predictive maintenanceUtility and public capex
Commercial buildingsDelivery and cleaning robots; lower service labor costBuilding access and elevator integration

Physical AI changes what space is worth, not only who works in it.

2 SECTOR INVESTMENT VIEWS · 2.11 REAL ASSETS

Four questions for a real asset review.

What to ask about any property.

  1. 1Tenants

    Are tenants automating? Which robot systems do they plan? Do leases allow machines?

  2. 2Building

    Clear heights and floor loads Doors, elevators and charging space Network coverage

  3. 3Power

    Capacity for charging and equipment Backup and resilience Utility lead times

  4. 4Operations

    Who runs the machines? Service and uptime terms Insurance and liability

Four questions bring physical AI into an ordinary asset review.

2 SECTOR INVESTMENT VIEWS · 2.11 REAL ASSETS

Property for physical AI.

Representative machines and sites.

High racking in a logistics buildingFloor loads, clear heights and power.Photo: Wollschläger Gruppe, CC BY-SA 3.0
High racking in a logistics buildingFloor loads, clear heights and power.Photo: Wollschläger Gruppe, CC BY-SA 3.0
Automated high-bay storageSpace designed around the machine.Photo: Gilgen Logistics AG, CC BY-SA 4.0
Automated high-bay storageSpace designed around the machine.Photo: Gilgen Logistics AG, CC BY-SA 4.0

Physical AI changes what a property needs.

Chapter 3

Finding the right investments

Before the deal, the diligence framework, scorecards, sample deliverables, how an engagement runs.

SUB-CHAPTER 3.1

Before the deal

Five jobs Atomgigs does ahead of an investment, and why field evidence matters.

Five jobs before the deal.

91

Field evidence separates deals that look alike.

92

3 FINDING THE RIGHT INVESTMENTS · 3.1 BEFORE THE DEAL

Five jobs before the deal.

What Atomgigs does ahead of an investment.

  1. 1Find

    Market maps by use case and proof level Long lists and short lists

  2. 2Size

    Market and unit economics models Thesis building

  3. 3Diligence

    Technology readiness Commercial, safety and supply chain review

  4. 4Validate

    Site visits and customer reference checks Pilot data

  5. 5Decide

    Memo for your committee Negotiation points and risks

Five jobs take you from a sector thesis to a decision your committee can defend.

3 FINDING THE RIGHT INVESTMENTS · 3.1 BEFORE THE DEAL

Field evidence separates deals that look alike.

Why Atomgigs validates in the field.

9

Customer sites for Agility’s Digit

$1.8M

Agility revenue at SPAC announcement

$2.5B

Agility pre-money value

2.3x

ABB Robotics deal price, times revenue

  • Demos, pipelines and letters of intent.
  • Revenue and forecasts as the company states them.
  • Capacity on paper.

What a data room shows

  • Hours run, uptime and interventions at each site.
  • How customers describe the machine and the service.
  • Cost to install and keep it running.

What the field shows

Field evidence turns an option into numbers: units, utilization and margin.

SUB-CHAPTER 3.2

The diligence framework

Ten dimensions, the proof scale and the unit economics test.

Ten dimensions of diligence, part one.

94

The unit economics test.

96

Ten dimensions of diligence, part two.

95

One proof scale for every company.

97

3 FINDING THE RIGHT INVESTMENTS · 3.2 THE DILIGENCE FRAMEWORK

Ten dimensions of diligence, part one.

Market, technology, field proof, economics and service.

DimensionThe questionEvidence gathered
MarketIs the buyer group large, reachable and growing?Segment sizing, buyer interviews
Technology readinessDoes it work outside the lab?Test data, failure logs, demos on site
Field proofIs it paid and in daily use?Site visits, customer references
Unit economics and paybackDoes a machine earn more than it costs?Cost per hour, utilization, margin by line
Deployment and service burdenWhat does it take to keep it running?Install time, staff, spares, remote support

Five dimensions test whether the product works and earns.

3 FINDING THE RIGHT INVESTMENTS · 3.2 THE DILIGENCE FRAMEWORK

Ten dimensions of diligence, part two.

Safety, supply chain, team, concentration and position.

DimensionThe questionEvidence gathered
Safety and certificationCan it be sold and insured where it runs?Standards status, incident log
Supply chain and tariffsCan parts keep flowing at a stable cost?Bill of materials, source map, second sources
TeamCan this team scale from pilot to fleet?Experience, hiring plan, key-person risk
Customer concentrationWhat if the largest buyer leaves?Revenue by customer and contract term
Competitive positionWhy does this company win?Win and loss reviews, pricing, switching cost

Five more dimensions test whether the company can scale and defend its position.

3 FINDING THE RIGHT INVESTMENTS · 3.2 THE DILIGENCE FRAMEWORK

The unit economics test.

Break-even in five steps, with an illustration. Typical ballpark values, not quotes.

  1. 1Cost per year

    Robot, service, software, charging. Example: $60,000

  2. 2Loaded wage

    Fully loaded labor cost an hour. Example: $40

  3. 3Break-even hours

    Cost ÷ wage. Example: 1,500 hours

  4. 4Utilization

    Hours run ÷ hours available. Example: 1,500 ÷ 4,000 = 38%

  5. 5Payback

    Months of savings to repay the cost. Measured, not claimed

A machine pays back when it works enough hours; every model should show utilization by site.

3 FINDING THE RIGHT INVESTMENTS · 3.2 THE DILIGENCE FRAMEWORK

One proof scale for every company.

Five levels from scaled to concept.

Proof levelWhat it meansWhat investors look at
ScaledThousands of units in paying useVolume and margin
CommercialPaying customers at many sitesUtilization and service
Early commercialA few paying customers and clear repeatsConversion from pilot to paid use
PilotTrials under way; limited paid useMilestones; treated as an option
ConceptDemos and pre-orders onlyResearch-stage evidence only

One proof scale lets a committee compare an arm maker and a humanoid maker fairly.

SUB-CHAPTER 3.3

Scorecards

A five-point scale and a sample scorecard.

A five-point scale for every dimension.

99

A sample scorecard.

100

3 FINDING THE RIGHT INVESTMENTS · 3.3 SCORECARDS

A five-point scale for every dimension.

How each dimension is scored.

ScoreMeaningTypical evidence
5Strong and provenRepeat paying use at several sites
4Good with minor gapsPaying use with some open items
3Adequate, needs workPilot data and a credible plan
2WeakClaims without field data
1Fails the testContradicted by evidence

A simple scale keeps ten dimensions comparable across companies.

3 FINDING THE RIGHT INVESTMENTS · 3.3 SCORECARDS

A sample scorecard.

Fictional company and data.

DimensionScoreEvidence note
Market4Large buyer group; two segments reachable
Technology readiness3Works in two sites; one failure mode open
Field proof3Five sites, two paid in daily use
Unit economics2Payback depends on 60% utilization
Deployment burden3Install takes six weeks per site
Safety and certification4Standard met; certificate in hand
Supply chain2Single source for actuators
Team4Experienced founders; thin service bench
Customer concentration2One buyer is 55% of revenue
Competitive position3Strong software; hardware easily copied

Sample scorecard for a fictional company: low scores point to the diligence questions to press.

SUB-CHAPTER 3.4

Sample deliverables

A market map, a diligence memo and a field validation report.

A sample market map.

102

A sample field validation report.

104

A sample diligence memo.

103

3 FINDING THE RIGHT INVESTMENTS · 3.4 SAMPLE DELIVERABLES

A sample market map.

Fictional companies placed by segment and proof level.

  1. 1Robot intelligence

    Company A: early Company B: pilot Company C: pilot

  2. 2Humanoids

    Company D: pilot Company E: pilot Company F: concept

  3. 3Warehouse systems

    Company G: commercial Company H: commercial Company I: early commercial

  4. 4Operations and integration

    Company J: early commercial Company K: early Company L: early

Sample market map with fictional names: each company placed by segment and proof level.

3 FINDING THE RIGHT INVESTMENTS · 3.4 SAMPLE DELIVERABLES

A sample diligence memo.

Six sections.

Memo sectionWhat it holds
Key findingsThe main findings and the three points behind them
Market and thesisBuyer segments, size and growth
Product and proofReadiness, field results, proof level
EconomicsUnit economics, utilization, margin by line
Risks and mitigantsSafety, supply, concentration, team
Terms and next stepsOpen items to settle before closing

The memo gives your committee the evidence for its decision, not a data dump.

3 FINDING THE RIGHT INVESTMENTS · 3.4 SAMPLE DELIVERABLES

A sample field validation report.

Fictional company and data.

SiteRobotsHours a dayUptimeCustomer comment
Site 1, warehouse121696%Reliable; wants faster pick rate
Site 2, warehouse8991%Needs better exception handling
Site 3, plant4688%Two stops a week; service slow
Site 4, hospital61294%Staff like it; wants more routes
What the report concludes
Utilization is 50% across the 30 robots (hours a day ÷ 24); payback holds above 60%. The service model is the gap.

Sample report with fictional data: it ties what customers say to hours and uptime.

SUB-CHAPTER 3.5

How an engagement runs

From scope to report, with the people involved.

A diligence engagement in five steps.

106

What you receive and who does the work.

107

3 FINDING THE RIGHT INVESTMENTS · 3.5 HOW AN ENGAGEMENT RUNS

A diligence engagement in five steps.

Typical timing; scope sets the actual schedule.

  1. 1Scope

    Agree questions, scope and timing. Week 1

  2. 2Screen

    Market map and short list. Weeks 1 to 2

  3. 3Diligence

    Technical, commercial and economics review. Weeks 2 to 5

  4. 4Field validation

    Site visits and customer reference checks. Weeks 4 to 6

  5. 5Report

    Memo, scorecard and committee support. Weeks 6 to 7

A typical engagement runs six to eight weeks; scope sets the timing.

3 FINDING THE RIGHT INVESTMENTS · 3.5 HOW AN ENGAGEMENT RUNS

What you receive and who does the work.

Deliverables and team.

  • Market map and short list.
  • Diligence memo and scorecard.
  • Field validation and reference report.
  • Briefing for your committee.

What you receive

  • A senior lead with M&A and operating experience.
  • Engineers who test the technology.
  • Field contacts at buyers and clients.

Who works on it

You get one team, one set of answers and a report your committee can use.

Chapter 4

Keeping track of what you own

Tracking framework, reporting and early warning, market intelligence, value creation, platforms, m&a and exits.

SUB-CHAPTER 4.1

Tracking framework

Why monitoring physical AI is different and what to measure by company type.

Machines in use tell you more than logos.

110

Metrics by company type.

111

4 KEEPING TRACK OF WHAT YOU OWN · 4.1 TRACKING FRAMEWORK

Machines in use tell you more than logos.

Why monitoring physical AI is different.

  • Revenue follows machines in use, not contracts signed.
  • Utilization and uptime move before revenue does.
  • Service and integration costs surface late.

What changes with physical AI

  • Deployments, utilization and uptime by site.
  • Revenue per machine and margin by line.
  • Backlog, cash runway and milestones.

What Atomgigs tracks

Field metrics lead financial metrics by a quarter or more.

4 KEEPING TRACK OF WHAT YOU OWN · 4.1 TRACKING FRAMEWORK

Metrics by company type.

Lead metrics and early warnings.

Company typeLead metricsEarly warning
Robot and drone makersUnits shipped, deployments, gross marginMargin stuck, pilots not converting
Robots-as-a-service operatorsUtilization, revenue per robot, uptimeIdle machines, rising service cost
Integrators and service firmsBacklog, hours per site, marginOverruns, technician turnover
Fleet softwareFleet size, recurring revenue, retentionCustomer churn, flat fleet
Data center and infrastructure assetsPreleasing, power delivered, cost per MWPower delays, tenant concentration

Track the metrics that fit the business model, not one template.

SUB-CHAPTER 4.2

Reporting and early warning

Cadence, a sample dashboard and the flags that matter.

Four reporting rhythms.

113

Six early-warning flags.

115

A sample dashboard.

114

4 KEEPING TRACK OF WHAT YOU OWN · 4.2 REPORTING AND EARLY WARNING

Four reporting rhythms.

Cadence for monitoring.

  1. 1Weekly

    Signals: deployments, news, risk flags. Short note.

  2. 2Monthly

    Dashboard: KPIs against plan. For the deal team.

  3. 3Quarterly

    Committee pack: performance, risks, actions. Plus market update.

  4. 4Annually

    Review: thesis check and exit options. Findings for the committee.

Four cadences keep your committee informed without flooding it.

4 KEEPING TRACK OF WHAT YOU OWN · 4.2 REPORTING AND EARLY WARNING

A sample dashboard.

Fictional company and data.

94%

Fleet uptime, month

52%

Average utilization

$410K

Revenue per site, month

14 mo

Cash runway

MeasurePlanActualFlag
Active sites1210Amber: two installs slipped
Gross margin28%24%Amber: service cost
Backlog$18M$21MGreen

Sample dashboard with fictional data: plan, actual and a flag for each measure.

4 KEEPING TRACK OF WHAT YOU OWN · 4.2 REPORTING AND EARLY WARNING

Six early-warning flags.

Triggers and meaning.

FlagTriggerWhat it means
Pilot purgatoryPilots over six months with no paid rolloutProduct or buyer fit problem
Idle machinesUtilization below plan two months runningRevenue at risk
Margin slipGross margin down two quartersService or parts cost
ConcentrationOne customer above 40% of revenueContract risk
CashRunway under nine monthsFinancing or cost action needed
Safety eventAny reportable incidentDeployment may stop

Flags tell the committee early, while action is still cheap.

SUB-CHAPTER 4.3

Market intelligence

What is hot, what is cooling and what is coming.

Hot, cooling and coming.

117

Intelligence from the field.

118

4 KEEPING TRACK OF WHAT YOU OWN · 4.3 MARKET INTELLIGENCE

Hot, cooling and coming.

Market intelligence themes.

  • Defense and dual-use autonomy
  • Data center build-out
  • Robot intelligence rounds

What is hot

  • Consumer and companion robots
  • Hardware-only models with thin margins
  • Pilots without paid rollouts

What is cooling

  • Public listings: Unitree and Agility now listed
  • Strategic consolidation
  • Robots as a service at scale

What is coming

Intelligence is useful when it changes how your committee reads its holdings.

4 KEEPING TRACK OF WHAT YOU OWN · 4.3 MARKET INTELLIGENCE

Intelligence from the field.

Where it comes from and what you get.

  • Pilots and field work at buyers and clients.
  • Contacts at makers, contractors and operators.
  • Funding, deal and regulatory tracking.

How Atomgigs knows

  • A monthly market note by sector.
  • Alerts on deals, rules and failures.
  • Briefings before investment committee meetings.

What you receive

The field network turns news into signals that matter to your holdings.

SUB-CHAPTER 4.4

Value creation

Five levers and the board or observer role.

Five ways to add value.

120

Board and observer roles.

121

4 KEEPING TRACK OF WHAT YOU OWN · 4.4 VALUE CREATION

Five ways to add value.

Operating support.

  1. 1Clients

    Introductions to buyers who need the product

  2. 2Channel partners

    Contractors and integrators who deliver it

  3. 3Talent

    Technicians, pilots and supervisors

  4. 4Suppliers

    Components, service and second sources

  5. 5Pilots

    Paid pilots that prove the case

Five levers move a company from pilot to fleet.

4 KEEPING TRACK OF WHAT YOU OWN · 4.4 VALUE CREATION

Board and observer roles.

Two ways to stay close.

  • Governance and strategy.
  • Monthly operating review.
  • Introductions and hiring help.

Board seat

  • Attend meetings and review reports.
  • Advise on pilots, channel and talent.
  • No vote; lighter time commitment.

Observer or adviser role

Roles are set case by case, with the board and your investment team.

SUB-CHAPTER 4.5

Platforms, M&A and exits

Roll-ups, exit readiness and support.

Platforms, roll-ups and exits.

123

Exit and M&A support.

125

Exit readiness.

124

4 KEEPING TRACK OF WHAT YOU OWN · 4.5 PLATFORMS, M&A AND EXITS

Platforms, roll-ups and exits.

Routes to scale.

  1. 1Platform

    One company adds services and products

  2. 2Roll-up

    Combine integrators or operators for scale

  3. 3Strategic partner

    A buyer with a platform thesis

  4. 4Public listing

    IPO or SPAC when scale and revenue support it

Four routes to a larger company or an exit.

4 KEEPING TRACK OF WHAT YOU OWN · 4.5 PLATFORMS, M&A AND EXITS

Exit readiness.

What buyers look for.

Readiness itemWhat buyers look forAtomgigs help
DeploymentsMachines running at paying sitesReference checks
Recurring revenueService, software, RaaS contractsContract review
MarginClear path to margin by lineModel review
TeamOperators able to run at scaleHiring support
Data roomClean metrics and contractsPreparation

Exit readiness is built over years, not months.

4 KEEPING TRACK OF WHAT YOU OWN · 4.5 PLATFORMS, M&A AND EXITS

Exit and M&A support.

Experience behind the support.

$20B+

M&A deal value facilitated

30

Years in management consulting

10

Years focused deeply on M&A

$100M+

Business impact delivered

  • Buyer lists and outreach.
  • Positioning and materials.
  • Process management to close.

Exit support

  • A field network buyers recognize.
  • M&A depth from a long record.
  • An engineering background that reads the technology.

Atomgigs strengths

M&A experience is applied to physical AI exits and consolidation.

Chapter 5

Working with Atomgigs

Engagement models, independence and confidentiality, how an engagement starts, why Atomgigs.

SUB-CHAPTER 5.1

Engagement models

Four ways to work together.

Four ways to engage.

128

Consulting, not investment advice.

129

5 WORKING WITH ATOMGIGS · 5.1 ENGAGEMENT MODELS

Four ways to engage.

Engagement models in plain terms.

  1. 1Advisory retainer

    Ongoing access to the team Market intelligence and portfolio monitoring Monthly rhythm

  2. 2Project

    Fixed scope and timing Diligence, market map or field validation One report

  3. 3Board or observer role

    Seat at the table Governance and operating support Agreed with the company

  4. 4Milestone-linked

    Part of the advisory fee tied to agreed milestones Milestones set in the written scope Agreed up front

Models can be combined; scope and terms are agreed before work starts.

5 WORKING WITH ATOMGIGS · 5.1 ENGAGEMENT MODELS

Consulting, not investment advice.

Roles and licensing.

  • Atomgigs provides consulting and field evidence.
  • Your team makes every investment decision.
  • Atomgigs is not a registered investment adviser.

How Atomgigs works

  • Atomgigs works alongside a licensed adviser or counsel.
  • A licensed professional is brought in for the engagement.
  • Roles are written into the engagement terms.

Where a license is required

Clear roles keep consulting separate from investment advice.

SUB-CHAPTER 5.2

Independence and confidentiality

How Atomgigs works with your team.

Principles for every engagement.

131

5 WORKING WITH ATOMGIGS · 5.2 INDEPENDENCE AND CONFIDENTIALITY

Principles for every engagement.

Confidentiality, conflicts, independence and ownership.

  1. 1Confidentiality

    Agreement before any deal information is shared Need-to-know team

  2. 2Conflicts

    Interests disclosed up front Clear rules on client overlap

  3. 3Independence

    Findings follow the evidence Honest ratings, including low scores

  4. 4Ownership

    You own the deliverables made for you

Investors share sensitive information; the terms protect it.

SUB-CHAPTER 5.3

How an engagement starts

Five steps from first call to first deliverable.

How an engagement starts.

133

What happens before kickoff.

134

5 WORKING WITH ATOMGIGS · 5.3 HOW AN ENGAGEMENT STARTS

How an engagement starts.

Five steps.

  1. 1Intro call

    Your thesis, sectors and questions.

  2. 2Scope

    Questions, deliverables and timing.

  3. 3Agreement

    Terms and confidentiality.

  4. 4Kickoff

    Team, data and access.

  5. 5First deliverable

    Market map or first dashboard.

A first deliverable arrives within weeks.

5 WORKING WITH ATOMGIGS · 5.3 HOW AN ENGAGEMENT STARTS

What happens before kickoff.

Preparing together.

  • Your investment focus and sectors.
  • The decision you face.
  • Who needs to see the result.

First call

  • Written scope and timing.
  • Agreed team and access.
  • Confidentiality in place.

Before kickoff

Clear scope first, then work.

SUB-CHAPTER 5.4

Why Atomgigs

Field network, team and experience.

What sits behind Atomgigs.

136

Experience behind the team.

137

5 WORKING WITH ATOMGIGS · 5.4 WHY ATOMGIGS

What sits behind Atomgigs.

Four strengths.

  1. 1Senior pod

    Leaders with operating and deal experience A named lead for your account

  2. 2Field network

    Makers, buyers and clients Contractors and integrators

  3. 3Vetted contract experts

    Technicians, pilots and engineers Available to test and validate

  4. 4M&A depth

    A long record of transactions Exit and consolidation support

Humans in the lead, physical AI in the loop: the same principle runs through our own work.

5 WORKING WITH ATOMGIGS · 5.4 WHY ATOMGIGS

Experience behind the team.

Headline credentials.

$20B+

M&A deal value facilitated

30

Years in management consulting

10

Years focused deeply on M&A

$100M+

Business impact delivered

  • Electrical and electronics engineering.
  • Consulting and C-suite operating roles.
  • M&A across many industries.

Background

  • Technology read by someone who builds.
  • Deals read by someone who has closed them.
  • One senior contact for the engagement.

What it means for you

Engineering and M&A experience in one team.

Chapter 6

Outlook and ten things to remember

Outlook, key takeaways and next steps.

SUB-CHAPTER 6.1

Outlook

Signals to watch and a maturity map.

Four signals to watch.

140

A maturity map.

141

6 OUTLOOK AND TEN THINGS TO REMEMBER · 6.1 OUTLOOK

Four signals to watch.

Outlook as signals, not forecasts.

  1. 1Capital

    Mega-round concentration Mid-market funding Debt-funded build

  2. 2Deployment

    Paid sites for humanoids Utilization data Service attach

  3. 3Rules

    Drone and VTOL rules Safety standards for new robots State data center laws

  4. 4Exits

    More listings Strategic buyers Consolidation

Four signals show whether proof is catching up with capital.

6 OUTLOOK AND TEN THINGS TO REMEMBER · 6.1 OUTLOOK

A maturity map.

Proof by sector.

SectorProof levelWhy
Industrial armsScaled603K installed in 2025
Warehouse systemsCommercialAmazon 1M+ robots; Symbotic backlog
Drone survey and inspectionCommercialRoutine use
Service robotsCommercial~250K shipped in 2025
Construction machinesEarly commercialFew vendors at scale
HumanoidsPilotFew paying sites
Passenger VTOLEarlyCertification in progress

Maturity differs by a wide margin; do not treat physical AI as one market.

SUB-CHAPTER 6.2

Key takeaways and next steps

Ten things to remember and how to start.

Ten things to remember.

143

Go deeper.

145

How to start.

144

6 OUTLOOK AND TEN THINGS TO REMEMBER · 6.2 KEY TAKEAWAYS AND NEXT STEPS

Ten things to remember.

Key takeaways.

01

Capital has arrived

$27B+ in Jan–Sep 2026, above any prior full year.

02

The pace is rising

$9.9B in Q3 2026, against $4.3B a year earlier.

03

Proof trails money

Humanoids have few paying sites.

04

Utilization decides

Machines pay back only if they work enough hours.

05

Services and people matter

Deployment succeeds or fails on service and talent.

06

Mid-market is thin

Ten companies took over 40% of 2025 funding.

07

Field evidence beats demos

Sites, hours and uptime show the truth.

08

Track machines, not logos

Deployments and utilization lead revenue.

09

Exits are open

Listings, SPACs and strategic sales are all active.

10

Consulting, not advice

Atomgigs supports your team; you decide.

6 OUTLOOK AND TEN THINGS TO REMEMBER · 6.2 KEY TAKEAWAYS AND NEXT STEPS

How to start.

A first conversation.

  • A thesis review for one sector.
  • A diligence on one company.
  • Monitoring for your current holdings.

Where to start

Reach Atomgigs

Start with one question and one deliverable.

6 OUTLOOK AND TEN THINGS TO REMEMBER · 6.2 KEY TAKEAWAYS AND NEXT STEPS

Go deeper.

The other Atomgigs primers, one address each.

#PrimerAddressWhat it covers
00Value Propositionatomgigs.comHow Atomgigs works and who it serves.
01Roboticsatomgigs.com/robotsEvery robot type: makers, proof and economics.
02OEMs, Drones and VTOLatomgigs.com/oemsDrones, VTOL, IoT and automation makers.
03Talentatomgigs.com/talentThe experts who run, repair and supervise machines.
05Enablersatomgigs.com/enablersFinancing, insurance, platforms and standards.
06Channel Partnersatomgigs.com/channel-partnersContractors and integrators who take machines to projects.
07Data Centersatomgigs.com/data-centerHow data centers are built, run and paid for.
08Manufacturing and Logisticsatomgigs.com/manufacturingHow goods are made, stored and moved.
09Construction and Infrastructureatomgigs.com/constructionHow we build and run the physical world.
10Public Safety and Defenseatomgigs.com/public-safetyMachines that extend public safety and defense teams. No weapons.
11Commercial Servicesatomgigs.com/commercialRobots and drones in service businesses.
12Physical AI Labsatomgigs.com/labsReal-site data for training robots.
13Physical AI Technologyatomgigs.com/technologyCompute, sensing, control, AI models, simulation and deployment.
Appendix A

About us and notes

The primers, Atomgigs, Mavengigs, Monty Pandey, notes.

A APPENDIX: ABOUT US AND NOTES · A.1 THE PRIMERS

The primers, one address each

Every primer is readable on atomgigs.com or in presentation mode.

#PrimerAddressWhat it promises
00Value Propositionatomgigs.comWhy Atomgigs, and how it works.
01Roboticsatomgigs.com/robotsEvery robot type, for every application.
02OEMs, Drones and VTOLatomgigs.com/oemsEverything that helps people work in the physical world, other than robots.
03Talentatomgigs.com/talentThe experts who work alongside physical AI.
04Investorsatomgigs.com/investorsWhere physical AI capital is going, and how to find and track deals.
05Enablersatomgigs.com/enablersThe organizations that pay for, insure, run and approve machines at work.
06Channel Partnersatomgigs.com/channel-partnersWinning and delivering projects with physical AI.
07Data Centersatomgigs.com/data-centerHow data centers are built, run and paid for, and who buys them.
08Manufacturing and Logisticsatomgigs.com/manufacturingHow goods are made, stored and moved.
09Construction and Infrastructureatomgigs.com/constructionHow we build and run the physical world.
10Public Safety and Defenseatomgigs.com/public-safetyExtending public safety and defense teams with machines. No weapons.
11Commercial Servicesatomgigs.com/commercialWhere robots, drones and automation work in service businesses.
12Physical AI Labsatomgigs.com/labsPhysical AI data for training robots, only with customer approval.
13Physical AI Technologyatomgigs.com/technologyThe stack behind robots, from silicon to fleet.
A APPENDIX: ABOUT US AND NOTES · A.2 ATOMGIGS

Atomgigs: Physical AI Delivered as Jobs Done

Machines and people as one hybrid workforce, to scale up what you build and run. Primers hold the details.

What Atomgigs is

  • Robots, drones, VTOL, IoT and automation, with people, as one hybrid workforce.
  • Humans in the lead, physical AI in the loop.
  • Not a machine builder: it sources from makers, then staffs, integrates, deploys and operates.

The sources

  • Robots: every robot type, profiled in depth.
  • Everything other than robots: drones, VTOL, IoT and automation, from many makers.
  • The humans: role families across the trades, engineering and safety, every person a contractor.

Who we work with

  • Investors: consulting before and after the deal.
  • Enablers: financiers, insurers, platforms and regulators behind every deal.
  • Channel partners: engineering, design, MEP and construction firms.

Buyer groups

  • Data centers
  • Manufacturing and logistics
  • Construction and infrastructure
  • Public safety and defense (no weapons)
  • Commercial services
  • Physical AI labs

How it works

  • Consulting engagement, then a short pilot, then production.
  • One scope, one site, one metric in the pilot.
  • A small senior pod runs every site, with a named human manager for every robot.

How we are paid

  • Pilot, managed crew, outcome-based or advisory.
  • No capital outlay for machines and no long-term headcount.
  • Pay for capacity and outcomes; scale up as results are proven.

Atomgigs is a Mavengigs venture. Atomgigs is a division of Panvisage Inc.

A APPENDIX: ABOUT US AND NOTES · A.3 MAVENGIGS

Mavengigs: the Scale Up Guys

Consulting, Capital and Ventures.

$20B+M&A deal value
30+Years consulting
50+Companies scaled
$100M+Business impact

Mavengigs Consulting

  • Strategic M&A, transformation and optimization
  • Focused on the part of M&A that begins after everyone shakes hands
  • Built for PE-backed and Fortune 500 teams

Mavengigs Capital

  • An independent sponsor platform
  • Family office strategy and management

Mavengigs Ventures

  • Funding and mentorship for founders we back
  • Panmedical: digital health in India, run as CEO
  • Atomgigs, Mavens Life and Mavens Health

Mavengigs is a division of Panvisage Inc.

A APPENDIX: ABOUT US AND NOTES · A.4 MONTY PANDEY

Monty Pandey: Founder and CEO

Founder, CEO and driving force behind Atomgigs

Monty Pandey: Founder and CEO

Career and experience

  • 30+ years of management consulting: managed major M&A deals totaling $20 billion; scaled 50+ companies for $100 million of impact
  • Deep expertise in M&A consulting, including integrations and divestitures
  • 2018 to present: Mavengigs: Consulting, Capital and Ventures
  • 2004 to present: Founded Panvisage, CEO for 22 years
  • 2024 to present: Panmedical CEO (digital health)
  • 1998 to 2004: Oracle, led 14 enterprise programs
  • 1994 to 1996: Rolled out nationwide cell networks
  • 1992 to 1994: Car and truck design (CAD, CAM, CIM)
  • 1991: B.E. Electrical and Electronics Engineering
  • 1989 to 1991: Designed robots, AGVs and manufacturing transfer lines
  • Data centers: built one from scratch in 2000; data center migration in 2008; Equinix in 2020
  • E&C companies: WSP, Jacobs, Worley, Halliburton, Fluor, Brown & Root
  • Managed the buildout of a manufacturing plant and a distribution center

Monty Pandey

  • Founder and CEO, Atomgigs
  • Founder and CEO, Mavengigs
  • Co-founder and CEO, Panmedical
Selected transactionsValueRole
GE Appliances / Haier$5.6BReadied for sale
Jacobs / CH2M / Worley$3.3BIntegration, Divestiture
ITW Signode / Carlyle$3.2BCarve-out, then sale
AMLI / Morgan Stanley$2.1BTake-private
Fortune Brands / ACCO / GBC$2BDivestiture, Integration
Equinix / Packet$335MIntegration
A APPENDIX: ABOUT US AND NOTES · A.5 NOTES

Notes on use

Three things to keep in mind when reading this deck.

Not investment advice

Atomgigs provides consulting. We are not an investment advisor, so you make your own decisions on investments.

Products belong to their owners

Company, product and robot names, logos and photos are used as examples and belong to their owners. This deck is for information only and is not a contract or an offer.

About the numbers

Numbers come from publicly available sources and are the latest available at publication. Costs, prices and returns are typical ballpark values, not quotes; they will be updated for your specific engagement.

Appendix B

Visual guide and reference

Diagrams, glossary, quick reference.

SUB-CHAPTER B.1

Diagrams

The stack, the proof ladder and the life cycle.

The physical AI stack.

154

The investment life cycle.

156

The proof ladder.

155

B VISUAL GUIDE AND REFERENCE · B.1 DIAGRAMS

The physical AI stack.

Five layers.

  1. 1Sense

    Cameras, LiDAR, sensors

  2. 2Connect

    Wi-Fi, 5G, satellite

  3. 3Decide

    Edge and cloud AI, fleet software

  4. 4Act

    Robots, drones, motors

  5. 5Twin

    Live model of the site

Five layers turn a machine into finished work.

B VISUAL GUIDE AND REFERENCE · B.1 DIAGRAMS

The proof ladder.

Five levels of proof.

  1. 1Concept

    Demos and pre-orders

  2. 2Pilot

    Trials, limited paid use

  3. 3Early commercial

    A few paying customers

  4. 4Commercial

    Many paying sites

  5. 5Scaled

    Thousands of units

The proof ladder runs from concept to scaled.

B VISUAL GUIDE AND REFERENCE · B.1 DIAGRAMS

The investment life cycle.

Where Atomgigs helps.

  1. 1Find

    Market map and short list

  2. 2Diligence

    Technology, economics, field

  3. 3Invest

    Terms and committee

  4. 4Monitor

    Dashboard and flags

  5. 5Exit

    Buyers and process

Atomgigs supports the work before the deal and after it.

SUB-CHAPTER B.2

Glossary

Physical AI, operations and investing terms.

Physical AI terms.

158

Investing terms.

160

Operations terms.

159

B VISUAL GUIDE AND REFERENCE · B.2 GLOSSARY

Physical AI terms.

Machines and technology.

TermMeaning
Physical AIAI that senses, decides and acts in the physical world through machines
AMRAutonomous mobile robot that navigates a changing floor
AGVAutomated guided vehicle that follows a fixed route
CobotRobot arm built to work near people
HumanoidRobot with a human-like body, walking or on wheels
TeleoperationA person controls or assists a robot remotely
Digital twinLive model of a site or machine
BVLOSBeyond visual line of sight, a drone flight rule
Terms are used the same way throughout the Atomgigs primers.
B VISUAL GUIDE AND REFERENCE · B.2 GLOSSARY

Operations terms.

Running machines.

TermMeaning
UtilizationHours a machine works divided by hours available
UptimeShare of time a machine is ready to work
OEEOverall equipment effectiveness of a plant or line
IntegratorFirm that installs and connects machines at a site
RaaSRobots as a service: pay by month, hour or task
PilotA limited trial to prove a machine at a site
PaybackTime for savings to repay the cost
eVTOLElectric vertical take-off and landing aircraft
Terms are used the same way throughout the Atomgigs primers.
B VISUAL GUIDE AND REFERENCE · B.2 GLOSSARY

Investing terms.

Deals and finance.

TermMeaning
Mega-roundFunding round of $100M or more
Pre-money valueCompany value before new funding
Enterprise valueEquity value plus debt, less cash
SPACListed shell company that merges with a private company
Tuck-inSmall acquisition that adds a capability
Roll-upCombining many small firms into a larger one
BacklogContracted work not yet delivered or billed
RunwayMonths of cash left at the current burn rate
Terms are used the same way throughout the Atomgigs primers.
SUB-CHAPTER B.3

Quick reference

Key numbers, rules of thumb and organizations.

Key numbers.

162

Industry organizations.

164

Rules of thumb.

163

B VISUAL GUIDE AND REFERENCE · B.3 QUICK REFERENCE

Key numbers.

Reference figures.

MeasureFigureContext
Industrial robots installed worldwide603,3072025
Robots operating in factories5.08M2025
Professional service robots shipped~250K2025
Robotics startup funding (Crunchbase)$27B+Jan–Sep 2026
Four hyperscalers’ 2026 capex$720B+Outlook
U.S. construction spending$2.19TSep 2026 annual rate
U.S. defense appropriations$839BFY2026
Open U.S. manufacturing jobs584KSep 2026

Key numbers used in this primer.

B VISUAL GUIDE AND REFERENCE · B.3 QUICK REFERENCE

Rules of thumb.

Simple tests.

Rule of thumbFormulaUse it for
Break-even hoursCost per year ÷ loaded wageDoes a robot earn more than it costs
UtilizationHours run ÷ hours availableRobots as a service economics
Hardware shareAbout half of mobile robot costTotal cost quotes
Proof levelConcept to scaledUnderwriting
MarginGross margin by lineHardware versus service

Simple tests that hold across sectors.

B VISUAL GUIDE AND REFERENCE · B.3 QUICK REFERENCE

Industry organizations.

Standards and statistics.

OrganizationWhat it doesWhy it matters
IFRInternational Federation of RoboticsRobot installation statistics
A3Association for Advancing AutomationRobotics standards and data
ISO and ANSIStandards bodiesRobot and machine safety
FAAU.S. aviation regulatorDrone and VTOL rules
OSHAU.S. workplace safety agencySafety rules at sites
NISTU.S. standards instituteMeasurement and AI frameworks
IEEEEngineering societyTechnical standards

Where to find standards and statistics.

Start a pilot

Have a project that needs hands and machines?

Tell us about the site, the scope and the schedule. We will come back with a pilot proposal.