NexCOBOT Targets Safety Gap as Big Tech Fuels 'Physical AI' Surge

The transition of artificial intelligence from digital environments into physical forms is accelerating, driven by a wave of Big Tech acquisitions and a shift toward AI-native robotics. Jenny Shern, General Manager of NexCOBOT, suggests this evolution is creating a critical tension between the speed of software development and the rigorous safety requirements of industrial hardware.

This market acceleration is evidenced by aggressive M&A activity from major technology firms. According to The Robot Report, Mobileye acquired Mentee Robotics for $900 million in January 2026, followed by Amazon's acquisition of Fauna Robotics in March and Meta's purchase of Assured Robot Intelligence in May. Shern noted that such acquisitions are likely to continue as robotics becomes increasingly central to the strategies of major tech companies.

The Rise of AI-Native Systems

Central to this shift is the emergence of "AI-native" robots. Unlike traditional robotic systems that rely on predefined instructions to perform repetitive tasks, AI-native robots are structured with AI as a core component for perception, decision-making, and interaction. This allows for more adaptable, learning-based systems capable of operating in dynamic environments.

However, the adoption of these systems in industrial settings faces a significant hurdle: reliability. While AI software can be updated in days or weeks, industrial hardware must meet strict certification and safety standards that typically involve long development cycles. In some cases, conventional in-house development for these systems can take up to five years.

Bridging the Hardware-Software Divide

NexCOBOT, a New Taipei City, Taiwan-based company under the NEXCOM Group, is attempting to solve this bottleneck through its certified functional safety controllers. By providing an open system, the company aims to help developers decouple AI iteration from hardware redesigns.

Shern argues that utilizing modular platforms and standardized interfaces allows new AI capabilities to be deployed onto existing robotic systems without the need to wait for entirely new hardware generations. This approach is designed to shorten the overall development cycle for robot manufacturers, allowing them to integrate advanced AI while maintaining the safety certifications required for industrial use.

Future Outlook

As the industry moves toward more autonomous industrial systems, the focus is shifting from whether AI can perform a task to whether it can do so safely and consistently. The market will likely watch whether open-standard safety controllers can become the industry norm, potentially lowering the barrier to entry for smaller robotics firms competing with Big Tech. While the software capabilities of Physical AI are advancing rapidly, the pace of industrial adoption will ultimately depend on the ability to prove these systems are safe for human-centric environments.