Nvidia, a dominant player in the AI chip market, is shifting its focus to robotics as it faces increased competition in the sector. Known for powering the rise of artificial intelligence (AI), Nvidia is preparing to launch the next iteration of its compact computers for humanoid robots, called Jetson Thor, in the first half of 2025. This strategic move is aimed at capitalizing on what Nvidia believes is an impending robotics boom.

Deepu Talla, Nvidia’s Vice President of Robotics, spoke about the company’s vision, stating, “The ChatGPT moment for physical AI and robotics is around the corner,” emphasizing that the market is at a tipping point. With rivals like AMD, Google, and Amazon intensifying competition for its chips, Nvidia sees an opportunity to lead in the robotics space by providing the hardware necessary for robotics companies to scale.

The company’s robotics push follows its involvement in funding humanoid robotics firm Figure AI, which was valued at $2.6 billion in a February funding round that included Microsoft and OpenAI. Nvidia’s efforts are aimed at building a comprehensive ecosystem to support robotics startups, hoping to secure its place in what it believes will be a transformative shift in technology.

Although Nvidia does not disclose specific revenue figures for its robotics division, the FT report revealed that its data center business constitutes the bulk of its revenue, accounting for around 88% of the $35.1 billion in sales reported in the third quarter. Despite the smaller contribution from robotics, the company is betting on the sector’s future growth.

The robotics space is seeing significant advances, especially with the help of AI. At MIT, researchers have developed a groundbreaking AI system that enables warehouse robots to handle complex tasks. The system, known as PRoC3S, allows robots to work in crowded spaces with odd-shaped packages, while also ensuring safety for human workers. This technology could help robots overcome challenges that previously required human dexterity and spatial awareness, opening up new possibilities for automation in logistics and eCommerce.

As the demand for automation in industries like retail and logistics continues to surge, robotics and AI technologies are becoming crucial. Nvidia’s strategic pivot into robotics signals the company’s long-term vision, with AI and robotics poised to converge in the near future. While the market for robotics currently represents a smaller portion of Nvidia’s overall revenue, its investment in this sector could position it as a leader in the coming AI-driven revolution.