a16z Maps New Technology Cycle Driven by AI and Robotics

Venture-capital firm Andreessen Horowitz (a16z) said the buildout of AI infrastructure is shifting the technology market away from the consumer internet and asset-light software toward the physical economy, including hardware, robotics and defense. Physical AI can extend intelligence to on-site tasks in areas such as manufacturing and logistics, making it the most important investment category after software.

An analysis published on June 29, 2026, cited PitchBook data showing that investment in robotics and physical AI reached about $16 billion across nearly 500 deals in the first quarter of 2026. Both investment value and deal count set records. Compared with levels from 2021 to 2025, deal volume roughly doubled and investment value increased about 4.5-fold.