Robots and Physical AI systems are entering a breakthrough moment, evolving from experimental demonstrations into practical tools that operate, react and make decisions in the physical world. Their rapid advancement underscores a major shift underway. AI is moving to the edge, becoming embedded in the devices and machines that surround us.
In fact, UBS predicts the market will reach up to $1.7 trillion by 2050 for humanoid robots alone. But behind this transformation lies a critical foundation: the massive investment cycle in AI data centers, which is now opening the door to Physical AI and reshaping semiconductor requirements. This is where GlobalFoundries comes in, delivering the essential semiconductor technology needed to bring Physical AI applications to life.
The data center investment cycle
What might look like sudden excitement around Physical AI is really the natural next step in a long‑running infrastructure build‑out. Every major leap in our industry starts this way: the foundation gets built first and then the applications explode. And that’s exactly what’s happening now, AI infrastructure is finally primed to push intelligence out of the cloud and into the physical world.
Now, massive investments in AI data centers are driving forward a new investment cycle, but the real market opportunity is the next phase of the cycle: Physical AI, aimed at enabling billions of physical devices — from wearable devices to autonomous vehicles — to sense, think, act and communicate in real time. This cycle is accelerating at breakneck speed—market projections indicate an explosive annual growth rate of 33.49% from 2025 to 2034, an opportunity too urgent to ignore.
