After years of investors shunning hardware, Silicon Valley is getting physical.

Robotics has become one of the hottest bets in tech as investors look beyond software for the next wave of AI. Physical AI startups — companies building machines that can act in the real world — raised a record $16.3 billion across 492 deals in the first quarter of 2026, according to PitchBook data.

Falling hardware costs, labor shortages, and pressure to reshore manufacturing are fueling a new generation of companies building for the physical world.

For Business Insider’s inaugural list of the most promising robotics startups, we asked 14 investors across the…

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