The startups behind Southeast Asia’s physical AI push

AI has learned how to write, draw, code, and talk like humans.

Humanoid robots that dance on stage and run marathons have also become familiar showcases, particularly in China. But turning those demonstrations into AI systems that can reliably perform real-world tasks at scale, and at a cost businesses or individuals can afford, is still a major challenge.

Industry players call this physical AI: AI systems that can perceive their surroundings and interact with the physical world through machines such as robots and drones.

While the race among AI models dominates the daily conversation, investors around the world are scrambling to ensure they don’t miss the ChatGPT moment for physical AI.

Globally, robotics and physical AI startups raised US$16.3 billion across 492 deals in the first quarter of 2026, according to PitchBook. Asia accounted for 54% of the deals but only about 25% of their value, reflecting the region’s smaller funding rounds on average.

Still, the money is reaching Southeast Asia. Most recently, in early July, Singapore-based dConstruct Technologies raised US$125 million in series A funding. Its software helps robots navigate and operate in complex environments where GPS is unreliable, such as construction sites and logistics facilities.

Our findings show that the region is home to 35 physical AI startups, which can be split into six different categories. Together, they’ve raised US$496.5 million in funding.

To organize them, we adapted Nvidia’s framework for the physical AI ecosystem, which includes both autonomous machines and the software, data, and simulation systems used to develop them. We grouped machine builders by the design and use case of their main commercial product.

The distribution shows where Southeast Asia’s strengths currently lie. Mobile and service robots – together with physical AI software, data, and simulation – make up nearly half the companies on our list. Humanoid and general-purpose robot builders account for only five.

Rather than trying to replicate the top-funded humanoid companies in the US and China, most Southeast Asian players are tackling narrower commercial jobs or building the infrastructure needed to train and deploy machines.

Teaching robots to see and feel

The deployment bottleneck