Robotics Near a physical AI breakthrough, DeepMind CEO says

Intermediate | January 31, 2026

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A Big Claim From Davos: “Physical Intelligence” Is Close

At Bloomberg House in Davos, Google DeepMind CEO Demis Hassabis said robotics is “on the cusp of a breakthrough moment in physical intelligence.” He explained that he spent much of the past year looking closely at robotics—and he thinks the industry may be about 18 months to two years away from a real physical AI breakthrough. (Bloomberg video; Investing.com summary)

What Does “Physical AI” Actually Mean?

Most people think of AI as chatbots, image tools, or software that lives on a screen. “Physical AI” is different: it means AI that can understand the real world and act inside it, like a robot learning to pick up objects, move safely, and complete tasks reliably. Hassabis compared the moment we’re heading toward to an “AlphaFold moment for the physical world,” meaning a major leap that unlocks lots of progress at once. (Bloomberg video)

Why It’s Hard: The Real World Is Messy

Robots don’t operate in perfect conditions. Floors are slippery, objects are different shapes, people walk through the workspace, and lighting changes. That’s why a true physical AI breakthrough isn’t just about smarter software—it’s about combining strong AI models with sensors, hardware, and training systems that can handle messy reality.

The Boston Dynamics Angle

Hassabis also pointed to Google’s collaboration with Boston Dynamics and suggested that we could see impressive demonstrations “in a year or two” that could eventually be scaled up. If that happens, it could move robotics from cool demos to real business value—especially in warehouses, factories, delivery networks, and even healthcare settings. (Investing.com summary)

Why a physical AI breakthrough Matters for Business

If robots become more capable and reliable, companies could automate more work that is currently too unpredictable for machines—like sorting items, loading trucks, stocking shelves, or doing simple maintenance tasks. That can mean lower operating costs, faster logistics, and better safety in risky environments. But it also raises tough questions about investment timing: if a physical AI breakthrough is truly close, companies don’t want to be late to the party.

Vocabulary

cusp (noun) – the edge of a big change; almost happening.
Example: “He said robotics is on the cusp of a major shift.”
breakthrough (noun) – a big, important discovery or improvement.
Example: “A breakthrough can change what a whole industry can do.”
physical intelligence (noun) – the ability to understand and act in the real world.
Example: “Physical intelligence means a robot can deal with real-life messiness.”
reliable (adjective) – dependable; working well again and again.
Example: “Businesses want robots that are reliable, not just impressive once.”
sensor (noun) – a device that detects light, movement, pressure, etc.
Example: “Robots use sensors to understand their environment.”
scale up (verb) – to grow something from small tests to wide use.
Example: “The challenge is to scale up robotics beyond demos.”
automation (noun) – using machines to do work instead of people.
Example: “Automation can speed up warehouse operations.”
operating costs (noun) – the ongoing costs of running a business.
Example: “Faster robotics could reduce operating costs.”
logistics (noun) – organizing and moving goods efficiently.
Example: “Logistics becomes cheaper when sorting is automated.”
investment timing (noun phrase) – choosing when to spend money on something.
Example: “Investment timing matters when technology is changing fast.”

Discussion Questions (About the Article)

What did Hassabis mean by a “breakthrough moment in physical intelligence”?
Why did he estimate 18–24 months for progress instead of saying “right now”?
What makes robotics harder than software-only AI?
What role could Boston Dynamics play in this push?
Why might businesses care about this even if they don’t build robots?

Discussion Questions (About the Topic)

Where would robots create the most value first: warehouses, hospitals, homes, or construction sites?
What jobs should never be automated, even if we can automate them?
How should companies prepare for big technology shifts without wasting money?
What new skills will workers need if robotics expands quickly?
What’s more important: making robots smarter, or making them safer?

Related Idiom or Phrase

“The next big thing” – the next major trend everyone will talk about.

Example: “If Hassabis is right, physical AI could be the next big thing after chatbots.”

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This article was inspired by: Bloomberg (video clip, Jan 20, 2026), and Investing.com’s write-up of the same Davos interview.