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International Business Times
International Business Times

The Billion-Dollar Pivot: Why the Biggest Bets in AI Are Moving From Software to Sensors

Brandon Barbello, co-founder of Archetype AI, speaks at the recent NTT Upgrade 2026 conference in Silicon Valley. (Credit: Ana Sofia Herazo)

In April, Jeff Bezos's Project Prometheus closed a $10 billion funding round at a $38 billion valuation. While just five months old at the time, and with no products shipped and no research published, its investors included some of the most prominent in the world, including JPMorgan and BlackRock.

But more attractive to investors that current sales was the bet Prometheus is making: building AI systems that simulate the behavior of materials, machines, and physical processes, a burgeoning category known as physical AI.

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