Physical AI Hits Inflection Point as NVIDIA Adds Reasoning and Robots Drop to $25K

NVIDIA this week unveiled GR00T N1.6, a robot AI architecture that plans a full sequence of movements before acting, replacing the older reactive sensor-to-action model. Alongside it, NVIDIA released open-source Isaac GR00T models and the RoboLab benchmark, positioning itself as foundational infrastructure for robot manufacturers rather than a robot maker itself. Unitree has cut its humanoid robot price from $85,000 in 2023 to $25,000 in 2026, with a production target of 20,000 units this year, opening the market to mid-size buyers who could not justify earlier price points. US-based 1X Technologies also began serial production of its NEO humanoid in Hayward, California, marking the first domestic shift from R&D to volume manufacturing for a humanoid platform. Industry data from Capgemini shows 79 percent of organizations are now actively engaging with physical AI, while venture capital funding in the sector reached a record $37 billion through May 2026.