Nvidia’s physical AI unit hits $10B in revenue as China drives robotics boom

Nvidia ↘ 1.51% now generates roughly $10 billion a year from its physical AI business — the branch of artificial intelligence that powers robots, self-driving cars, and drones — with China emerging as one of its most active markets, according to a report by The Wall Street Journal News Corp ↘ 0.52% published on August 28.wsj

While that sum remains a fraction of Nvidia's overall revenue, which totaled $303 billion in the four quarters ended in July, CEO Jensen Huang told the Journal he expects the physical AI segment to grow tenfold within the next decade. China, which shipped 97 percent of the world's humanoid robots in the first half of 2026, according to a Smart Analytics Global report, is central to that expansion.michaelparekh.substack+1

A $50 Trillion Bet

Huang has repeatedly framed physical AI as a generational opportunity. At Nvidia's GTC conference in March, he called manufacturing robotics "a $50 trillion industry" and said the company has spent a decade building the foundational computing systems to address it. In a later appearance in July, he declared that the "ChatGPT moment" for robots had already passed.247wallst+2

Nvidia supplies robotics and automotive chips — including its Orin and newer Thor processors — to Chinese automakers and robotics firms, even as U.S. export controls continue to restrict the sale of its most advanced data center GPUs to China. The company also restarted manufacturing of H200 processors for the Chinese market earlier this year after receiving regulatory clearance.telemetryagency+1

China's Robotics Surge

Chinese companies have been among the earliest adopters of Nvidia's automotive and robotics platforms. The relationship runs deep: when Huang demonstrated a robotic version of Olaf, the Disney snowman, at GTC in March, the robot relied on motion components from Chinese manufacturer Unitree.wsj+1

At Nvidia's March event, more than 100 robotic systems were on display, and the company said it is working with "literally every single company that we know of building robots". Nvidia also unveiled new Isaac simulation frameworks and Cosmos open models designed to help the industry develop and deploy intelligent robots.nvidianews.nvidia+1

The physical AI push marks Nvidia's effort to diversify beyond its data center GPU business, which still accounts for the vast majority of revenue. Whether the $50 trillion market Huang envisions materializes will depend on how quickly autonomous machines move from factory floors and test tracks into everyday use — a transition China appears determined to lead.