Applied Intuition aims to bring AI into the physical world

A startup located in the Bay Area wants AI to move beyond chat and engage with the real world.

Applied Intuition, a software firm from Silicon Valley that focuses on autonomous systems, recently held an event called Physical AI Day to showcase the automation potential for mines, farms, and trucks.

Unlike AI that operates exclusively online, Applied Intuition is integrating its software with existing equipment that must function within the physical world.

The challenge faced by these machines is operating within highly unpredictable environments, such as miles of highways, expansive farming fields, or underground mining areas.

Marc Andreessen, a prominent partner at Andreessen Horowitz and an early investor in Applied Intuition, discussed the potential and challenges of the technology during Physical AI Day as businesses strive to transition bits to atoms.

During a conversation with CEO Qasar Younis and CTO Peter Ludwig, Andreessen noted that the AI revolution arrives in two phases: "the virtual phase and the physical phase."

"The virtual phase is relatively simple to grasp — all you need is a keyboard," Andreessen stated.

"However, the world is structured around physical human experiences. How do you design a humanoid to adapt to this environment?"

Andreessen once bought a robotic dog for his child from a Chinese company, only to find out that it weighed 150 pounds, required support when not in use, and posed safety risks if it toppled over.

"The tangible aspect of existing in the physical world is vastly different," said Andreessen.

Established as a software company in 2017, Applied Intuition specializes in simulation and infrastructure tools for self-driving vehicles.

It reached a valuation of $15 billion in June 2025 due to contracts with the US military and global car manufacturers and aims to bring autonomy to agriculture, mining, and personal passenger vehicles.

Joe Forcash, the head of mining, construction, and agriculture at Applied Intuition, said during a presentation, "The future doesn't include more human labor as the answer."

Forcash also noted that some critical roles in mining and agriculture are fundamentally undesirable because of the harsh working environments, but achieving automation is complicated by the dynamic and unpredictable nature of the surroundings in those industries.

Rather than building equipment from scratch, Applied Intuition collaborates with existing trucking and mining companies like Komatsu and Isuzu, customising its software to fit their equipment.

During the Physical AI Day event, large machines like excavators and trucks were showcased, although they mostly stayed stationary.

Malhar Patel, Applied Intuition's deputy CTO, highlighted during his talk that physical world AI presents both "the biggest opportunity and gap" and remarked that the simple successes in AI are already obtained.

In Japan, the company recently introduced its second-generation autonomous Isuzu trucks for freight services along nearly 250 miles.

Masanori Katayama, Isuzu Motors' CEO, refers to autonomous trucking as "essential" for Japan's logistics sector, given the shortage of drivers.

Despite the challenges in physical AI, Applied Intuition wishes to assure you that it isn't aiming to eliminate the enjoyment of being on the road.

"Rest easy," said Vijaysai Patnaik, general manager at Applied Intuition. "When your kids signal for a horn on the highway, our smart truck will still respond with a honk."