“The biggest industry in the history of the planet.”

Today, when most people think of AI, they envision chatbots and large language models—text‑based systems that digitally converse or generate content. But comments like Mr. Andreessen’s in our title, and NVIDIA CEO Jensen Huang—who was in Paris this week and said “this is going to be the decade of robotics and autonomous machines”—suggest that the real disruption is only just beginning.

The next frontier is embodied AI: robots, drones, and machines that move, sense, act, and transform the physical world.

This shift won’t just change tech. It will rewire global industry—logistics, defense, healthcare, agriculture, construction, energy. 

Where software once ate the world, physical AI will now build, repair, and secure it.

The signals are here.

• Skild AI, a robotics startup backed by Samsung and NVIDIA, raised fresh millions at a $4.5 billion valuation.

• Gecko Robotics secured $125 million to scale its fleet of infrastructure-inspecting machines—already used in U.S. power plants and military ships.

• 1X Technologies unveiled Redwood, a new AI model powering its humanoid robot, NEO. Trained on real-world home data, Redwood will enable NEO to autonomously handle domestic tasks like laundry, answering the door, and navigating familiar spaces.

• Universal Robots launched its fastest collaborative robot yet, powered by U.S.-based AI

• Anduril is gearing up to manufacture tens of thousands of autonomous defense systems annually at its new Arsenal-1 facility

Meanwhile, China isn’t standing still.

While U.S. companies fight for market share and venture capital, China is mobilizing at a national scale. Xi Jinping has declared humanoid robotics a strategic priority, publicly visiting AI robotics factories and linking the sector to China’s future industrial dominance. Over 30 Chinese companies are now building humanoid robots—compared to fewer than 10 in the U.S. These robots are priced aggressively, with some models starting at $12,000, thanks to vertically integrated supply chains and state-backed manufacturing.

That is on top of the Chinese government flooding the sector with financial support—including over ¥1 trillion (~$137 billion) in AI and robotics subsidies and a 40x jump in government procurement.

This isn’t just competition—it’s a coordinated campaign to dominate the global embodied AI stack. If China captures this market, they won’t just make the hardware—they’ll control the interfaces, data flows, and behavioral norms of the physical world.

Washington is behind

As technologies and VCs increasingly understand embodied AI as both a national security and economic imperative, the U.S. government is still treating it like a science fair. It’s time to catch up.

Here are a couple ideas for policymakers to consider:

• Banning CCP-affiliated robotics companies from critical sectors, ensuring these machines have no presence near U.S. military bases, research laboratories, or other sensitive infrastructure. We need a clear market signal restricting imports of Chinese humanoid robots, similar to the Huawei playbook, which would push investment toward American and allied alternatives.

• Leveraging the Defense Production Act to accelerate the production of domestic robotics, focusing on key inputs like rare earth minerals, magnets, and affordable raw materials like steel and aluminum that will be needed to build this fleet of autonomous devices. Additionally, establishing a “Clean Robotics” standard, similar to the Clean Networks initiative in 5G, could set a framework for safe, transparent, U.S.-aligned embodied AI systems.

Zoom Out.

Simply put, the stakes couldn’t be higher. Imagine chip fabs powered by smart robots working around the clock, homes outfitted with humanoids trained on daily routines, or battlefields that deter war with larger numbers of smaller systems. We’re moving beyond the age of pure software and entering one where power is measured in silicon, steel, and autonomy. The critical question now is: who will build the machines that run the world?

POLICY SPOTLIGHT: Drone Revolution Incoming: What Trump’s EO Means for American Tech and Security

President Trump's June 6 executive order "Unleashing American Drone Dominance" declares war on the bureaucratic inertia that has kept American innovation grounded. Within 30 days, we'll see proposed rules for Beyond Visual Line of Sight operations – meaning companies will no longer need special waivers to test long distance drone operations. Within 240 days, final implementation. No more waiting years for permission to build the future.

Industrial Sovereignty

The order mandates that federal agencies prioritize American-manufactured drones to the maximum extent permitted by law while directing Commerce to secure our drone supply chain against foreign exploitation within 90 days. American drones, built with American components, powered by American innovation.

The Defense Innovation Unit's Blue UAS List—previously a niche procurement tool—now becomes the backbone of military drone strategy. Every compliant platform gets streamlined access to military installations. Every military department must identify legacy programs ripe for drone replacement.

Racing Toward Tomorrow

Just days before this executive order, Western researchers achieved something remarkable: an autonomous drone defeated three world champion human pilots in international drone racing competition. Using only a single camera and neural networks that command motors directly, TU Delft's AI reached speeds of 95.8 km/h on a challenging course.

Delivery drones that think faster than human pilots. eVTOL aircraft that navigate urban airways with superhuman precision. Cargo systems that optimize routes in real-time. The same AI that outflew world champions will soon deliver life-saving medical supplies across rural America and transport passengers above traffic-choked cities.

The executive order's eVTOL Integration Pilot Program launches within 90 days. Five pilot projects. Ninety days to operational status. Real flights serving real communities with advanced air mobility, medical response, and rural access.

Speed and Stakes

Autonomous systems operating at superhuman speeds with split-second decision-making will reshape both commerce and conflict. Ukraine is demonstrating that low-cost, high-performing drones democratize precision capabilities once reserved for major powers. The President’s executive order puts emphasis on securing American supply chains, reflecting this reality—in an era where commercial drones can become military assets, controlling the technology stack means controlling the future.

⚡️ALFA is a platform for ideas and technologies that enhance American life. Are you a technology company or policy advisor working on something that pulls society forward? Drop us a line at [email protected].

Thanks for reading and have a great day.

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