Physical AI Investment Surge

VCs poured $47.4B into physical AI (robotics, autonomous systems, hardware) in H1 2026, a 4x increase from H2 2025. Investors cite improving economics and hardware-as-distribution model. Signals maturation of real-world AI deployment beyond software. Reach Capital raises $265M Fund V for AI founders building to expand human potential, indicating continued LP appetite for sector-focused AI funds.