Why Nvidia, Tesla are betting on AI-powered humanoid robots

A new wave of humanoid robots is threatening to shake up the labor market. Built like humans and fueled by artificial intelligence, the machines are learning to tackle complicated tasks at a rapid rate.

The advancement of generative AI is supercharging how quickly humanoids can learn, backed by vast amounts of data and high-powered chips. Chipmaker Nvidia (NVDA) has doubled down on its future, building out an ecosystem that enables robotics makers to customize their products. The Isaac robotics platform, which includes generative AI foundation models and tools, allow developers to simulate real- world movements in the digital world, while Nvidia’s Thor system-on-a-chip (SOC) provides the computing power needed to drive the transformation.

Already, Tesla (TSLA), Amazon (AMZN) and others are incorporating humanoids in their work spaces. At a recent shareholder meeting, Tesla CEO Elon Musk said the machines had the potential to propel the EV maker into a $25 trillion market cap company.

Tesla is looking to capture the market by integrating its Optimus humanoid into factory floors. Musk has said two robots have already been deployed at the company’s Fremont, California factory and predicted “a few thousand” Optimus robots to be working by 2025.

But the company faces plenty of competition. Austin-based Apptronik has already signed partnerships with logistics firm GXO and Mercedes-Benz to deploy its humanoids to their floors, while Amazon has begun using Agility’s Digit robot in its test facility.

Watch to see what’s NEXT in humanoid robots.

If you’re going to future-proof your portfolio, you need to know what’s NEXT. In this series, Yahoo Finance will feature stories that give a glimpse at the future, and show how companies are making big moves today that will matter tomorrow.

For more on our NEXT series, click here, and tune in to Yahoo Finance Live for more expert insight and the latest market action, Monday through Friday.