Google parent company Alphabet (GOOG / GOOGL) is expanding into robotics and physical artificial intelligence (A.I.), which it sees as the new technology frontier.
According to reports, Alphabet is adopting a similar playbook with robotics that it used to expand into the smartphone market.
Alphabet became a major player in smartphones by creating the Android operating system and partnering with handset makers in need of an answer to Apple’s (AAPL) iPhone.
That’s essentially how the company is now planning to dominate robots and physical A.I.
Last week, Alphabet announced that “Intrinsic,” an internal robotics software project, is being moved from its “Other Bets” category into the main company for further development.
Just as Android runs across phones and tablets made by companies such as Samsung (SSNLF) and Motorola (MSI), Intrinsic does the same for robotic systems.
Intrinsic is partnering with companies such as FANUC, Universal Robots, and KUKA, which primarily focus on industrial robots.
Consultants McKinsey & Co. project that the market for general purpose robots could reach $370 billion U.S. by 2040.
That’s a potentially large opportunity for Alphabet as A.I. moves from the online world of chatbots to the physical world of manufacturing plants and warehouses.
Competitors of Alphabet in robotics and physical A.I. include Amazon (AMZN) and Tesla (TSLA).
Intrinsic has said that it’s building an operating system so manufacturers “can focus more on solving the problem, and not the plumbing.”
By moving inside Alphabet, Intrinsic will be closer to the company’s A.I. models, infrastructure, and cloud tools. It will operate as a distinct group within Alphabet.
In 2025, Alphabet debuted two new A.I. models, Gemini Robotics and Gemini Robotics-ER (extended reasoning), bringing generative A.I. into industrial robots.
Last month, Google teamed up with company Boston Dynamics to integrate its Gemini A.I. into Atlas humanoid robots that are used for manufacturing.
GOOGL stock has risen 87% over the last 12 months to trade at $311.76 U.S. per share.
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