OpenAI’s Chief Executive Officer, Sam Altman, has privately invested in a new physical AI startup, injecting fresh energy into a sector that is quickly becoming a hotspot for venture capital. The startup, named Alfred, is led by former employees of Tesla and Meta, with Altman being one of its initial supporters, as reported by Business Insider.
Ankit Ukil, a former designer at Tesla, and Dömötör Gulyas, a former engineer at Meta Reality Labs, co-founded Alfred. The company is developing a software platform aimed at helping engineers speed up the process of creating physical machines, reducing the time typically spent on research and development in manufacturing. Ukil mentioned to Business Insider that the primary objective is to empower engineers to avoid repetitive tasks and concentrate on more valuable activities, like enhancing vehicle features.
Alfred is currently in the midst of a fundraising round at a valuation of $40 million, with investments coming from Khosla Ventures, SV Angel, Chapter One, and other backers. Altman participated in the funding through his venture capital firm, Hydrazine Capital, although the specific amount of his contribution has not been disclosed.
Headquartered in Hawthorne, California, Alfred’s team comprises professionals from Tesla, Ford, and Honda. The company is engaged in talks with undisclosed automakers, defense contractors, and robotics firms, as it continues to develop its flagship platform, according to Business Insider.
This investment comes amidst a growing excitement surrounding physical AI. In April alone, startups in this sector secured about $5.3 billion in venture funding, based on data from Crunchbase. Major tech companies are also joining the fray, with chipmaker Nvidia unveiling a standard humanoid robot blueprint for academic researchers at the recent Nvidia GTC Taipei conference, set for release later this year.
Altman has been vocal about his aspirations. He recently shared on X that robotics is the next frontier for OpenAI, outlining immediate plans for machines aiding skilled workers and a long-term vision of personal robots for the masses. With over 170 investments in 15 years, according to PitchBook, Altman’s diverse portfolio has contributed to his billionaire status. Business Insider’s requests for comments from Altman and OpenAI went unanswered.
