As you all know, the Physical AI theme is now the second theme I am covering on here, along with Optics.
I’ve gotten a lot of new subs lately, so I wanted to lay everything out in 1 article and show where we are at so far!
We are very early in this theme. I am in no rush to expedite the research or take positions before finding the highest quality.
I am really spending time here and doing diligence and making sure I explain everything that I am seeing in depth.
I have only invested 9% of my target allocation so far. (See portoflio tracker).
So here are all the different pieces I have written so far in order:
Intro to the theme
Portfolio Tracker
Unpacking Layer 1
Investment # 1
Unpacking Layer 2
Investment # 2
I have cleaned up my website homepage, which is best viewed on a desktop browser.
If you click on ‘Physical AI’ at the top, you will see all the articles about Physical AI that I tagged.
So going back, you should see the pattern here with how I am going about this.
After the foundation is set, I then peel back each layer.
Once I peel back a layer, I then present an investment from that layer.
Then I move on to the next layer.
Rinse and repeat.
There are 11 layers I will go through for this.
Some layers will have multiple investments.
Some won’t have any.
There are a couple companies that I am still interested in from Layer 1 + Layer 2 to invest in. I need to conduct some more diligence and decide on the right price for entry. As always, I will release a full deep dive when I do.
This week I will also be presenting Layer 3 and Layer 4 in depth.
I also want to reiterate that I think about Physical AI very broadly. Here is a post I made on X:
It is clear to me that I see this theme differently.
When I started positioning into the optical supercycle my focus was on the supply chain.
Raw materials
Susbtrates
Epitaxy
Testing
etc.
Chokepoints / Bottlenecks
But when I am going about building my Physical AI portfolio, I am looking at it through a different lens
Yes you can have a literal supply chain for humanoids or warehouse robots from the smallest pieces to the deployed system. And that is part of it
But I am looking at it through LAYERS
What are all the different sub-industries that will benefit as Physical AI gets adopted?
And when I think about Physical AI, I am thinking broadly about AI interacting with the physical environment
That is very vast.
And that’s why the research is so exciting
You can have exposure to data / simulation companies like
PL 0.00%↑ INOD 0.00%↑ BKSY 0.00%↑ U 0.00%↑ TASK 0.00%↑
You can have exposure to edge like OSS 0.00%↑ CEVA 0.00%↑ AMBA 0.00%↑
You can have exposure to lidar like OUST 0.00%↑
There are so many layers to have exposure to that will benefit as AI gets adopted in the physical world.
Some make money now
Others won’t make money for years
So there is opportunity across the spectrum
Thank you to everyone that is along for this ride!
It definitely carries a lot of responsibility & weight to build out a portfolio with thousands of people watching, in a very volatile market. That is why I really want to make sure I am taking the time to build this out as optimally as possible.
Because if I do, I think we can have something really powerful here.