Why Physical AI Is the Next Big Opportunity | Deep Dives with a16z
a16z Deep Dives · 2026-04-23 · 49 min
https://www.youtube.com/watch?v=faqaOVQ5AxkVideo summary
Diode Computers aims to automate circuit-board design in two years, while Unlimited Industries targets end-to-end construction automation within a decade.
On a16z’s Deep Dives, Erin Price-Wright speaks with Diode Computers CEO Davide Asnaghi and Unlimited Industries CEO Alex Modon about bringing AI into physical industries. Modon says AI could generate optimized construction plans from site requirements and automate construction end to end within a decade, cutting project timelines that can stretch years. Asnaghi expects some circuit-board design to be fully automated in two years; Diode says its tools already make board development 90% more efficient, while AI-designed boards could help automate manufacturing and expand US capacity. Both founders describe using code, structured models, and simulation to handle real-world constraints, but disagree on whether the main remaining obstacle is scarce training data or better reinforcement-learning methods. They also discuss robotics, skilled-trade shortages, and how faster, more abundant US manufacturing and construction could restore the ability to build ambitious projects.
Chapters
- 0:00Introductions & Physical World AI: Diode Computers and Unlimited Industries
- 2:00Automating Construction End to End: AI-Generated IFC Packages for Large Facilities
- 4:36Automating Circuit Board Design & Manufacturing: Two-Year Design Automation and Manufacturable Boards
- 10:16Changing Entrenched Industries & Vertical Integration: Construction Finance Incentives and Unlimited’s Integrated Team
- 14:53Changing Entrenched Industries & Vertical Integration: Diode’s Open Compiler and Schedule-Driven Value
- 19:21Getting AI to Understand Real-World Physics: Code-Based Board Design and Validated Data
- 24:38Getting AI to Understand Real World Physics: Training Models with Simulation and Hardware Checks
- 29:28Do We Need a Breakthrough to Close the Last Gap? Data, Search, and End-to-End Design
- 34:24Humanoids, Robotics & the Future of Physical Automation: Factory Arms, Soldering, and Skilled Work
- 40:08Humanoids, Robotics & the Future of Physical Automation: Electrician Shortages and AI-Ready PCB Manufacturing
- 44:54Second Order Effects & Why This Work Matters: Easier Hardware Startups and Rebuilding US Industry
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