Why Physical AI Is the Next Big Opportunity | Deep Dives with a16z

Erin Price-Wright speaks with Alex Modon, cofounder and CEO at Unlimited Industries, and Davide Asnaghi, CEO at Diode Computers, about how AI is moving from software into the physical world. They discuss automating construction and electronics design, using code and simulation to model real-world systems, and how incentives and manufacturing constraints shape adoption. They also examine what it takes to scale infrastructure, reduce build times, and unlock more abundant industrial capacity in the United States. Timestamps: 00:00 - Trailer 00:51 - Introductions & What is Physical World AI 02:00 - Automating Construction End to End 04:36 - Automating Circuit Board Design & Manufacturing 10:16 - Changing Entrenched Industries & Vertical Integration 19:21 - Getting AI to Understand Real World Physics 29:28 - Do We Need a Breakthrough to Close the Last Gap? 34:24 - Humanoids, Robotics & the Future of Physical Automation 44:54 - Second Order Effects & Why This Work Matters Read the full transcript here: https://www.a16z.news/s/podcast Resources: Follow Alex on X: https://x.com/alexmodon Follow Davide on X: https://x.com/davideasnaghi Follow Erin on X: https://x.com/espricewright Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X: [https://x.com/a16z](https://x.com/a16z) Find a16z on LinkedIn: [  / a16z  ](  / a16z  ) Listen to the a16z Podcast on Spotify: [https://open.spotify.com/show/5bC65RD...](https://open.spotify.com/show/5bC65RD...) Listen to the a16z Podcast on Apple Podcasts: [https://podcasts.apple.com/us/podcast...](https://podcasts.apple.com/us/podcast...) Follow our host: [https://x.com/eriktorenberg](https://x.com/eriktorenberg) Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see [a16z.com/disclosures](http://a16z.com/disclosures).