AI Startups Raise Billions for Blue-Collar Robot Brains

AI job anxiety has mostly lived in the office so far, with people worrying about what happens to analysts, support teams, and other technical roles. Now, automation may be moving into workplaces that rely on physical labor and unpredictable conditions. 

Startups are raising billions of dollars to build AI “brains” for robots that can operate in settings such as construction sites, warehouses, and energy facilities. If these systems work as intended, automation could expand into welding, inspection, materials movement, and other blue-collar tasks that have been difficult to automate until now. 

Public unease meets physical AI investment

AI job fears had largely centered on office work, and public concerns remain high. A recent Pew Research Center poll found that nearly half of US adults were more worried than excited about AI’s impact on daily life. “In fact, in many countries surveyed, a larger share of people are equally excited and concerned about the growing use of AI,” the Pew survey noted.

Warnings from business and policy leaders had underscored those concerns. According to The Economist, Kristalina Georgieva, head of the IMF, had likened AI’s labor impact to a “tsunami,” while others warned that the technology could disrupt employment patterns globally.

Axios reported that similar disruption pressure was now emerging in blue-collar industries as venture capital and corporate R&D poured money into robotics software designed for the real world. 

Billions back robot software ‘brains’

According to Axios, venture funding has flowed toward companies building software “brains” that could help robots handle a wide range of physical tasks in real-world environments. 

“The basic idea is that these software ‘brains’ would understand physics and other real-world conditions — helping the robots adapt to changing environments,” Axios wrote. The publication also noted that once a robot has the physical tools for a job, it could develop the knowledge to handle nearly any task, from plumbing to cooking.

Pittsburgh-based Skild AI has raised around $1.4 billion at a $14 billion valuation. Meanwhile, Toronto-based Waabi raised up to $1 billion in what could be the largest funding round ever for a Canadian startup focused on robotaxis and self-driving trucks. 

“It’s obvious that the physical AI moment is here,” Waabi founder and CEO Raquel Urtasun told Axios. “Autonomy is the first application where scale is going to happen,” Urtasun added. 

Axios also reported that FieldAI had raised nearly $400 million to focus on “dirty, dull, or dangerous” industries such as energy and logistics, where robots could eventually support tasks in infrastructure and data center construction. 

Unclear timeline for adoption and workforce impact

Even with a large investment, it remained difficult to predict how many blue-collar jobs could be affected on what timeline, at least for now. Axios emphasized that even if AI-powered robots outperform humans, the cost of the hardware and switching over to robots may offset those efficiency gains. 

The Economist also argued that while AI was reshaping jobs, it didn’t automatically wipe out entire categories of work. Instead, labor may shift away, with less focus on routine tasks and more on oversight, safety, and integration.

Curious about the jobs AI might replace? Read our breakdown of the top 10 jobs that face the highest automation risk. 

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