OpenAI CEO Sam Altman is reportedly backing an AI startup named Alfred.
The startup, led by former employees of Tesla Inc. (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META), is also receiving financial backing from Khosla Ventures, SV Angel, and Chapter One, among others, reported Business Insider on Monday.
Alfred is aiming to raise funds at a $40 million valuation. The startup, co-founded by Ankit Ukil, a former Tesla designer, and Dömötör Gulyas, an ex-engineer at Meta Reality Labs, is focusing on the development of physical AI. This innovative field aims to integrate AI into machines that navigate the real world, such as robots.
The sector of physical AI has been attracting investors, with startups in the field raising approximately $5.3 billion in venture capital funding in April alone. Alfred’s team includes designers and engineers from Tesla, Ford Motors (NYSE:F), and Honda Motors. The startup, based in Hawthorne, California, was established nine months ago.
The founders are promoting a software platform that accelerates the machine-building process by reducing research and development timelines. This allows engineers to focus on enhancing features, such as those seen in the latest Chinese electric vehicles.
OpenAI did not immediately respond to Benzinga‘s request for comments.
The Trillion-Dollar Robotics Race
As per PitchBook data, over the past 15 years, Sam Altman has made more than 170 investments, including through venture fund Hydrazine Capital.
The investment in Alfred aligns with the growing interest in physical AI, a field identified by SoftBank Group Corp.'s (OTC:SFTBY) CEO, Masayoshi Son, as a potential trillion-dollar business opportunity. Son has expressed his enthusiasm for both humanoid and industrial robotics, “with physical AI as a core.”
Former Meta CTO Schroepfer has also indicated that industrial robotics will scale faster than home robots due to more controlled conditions in factories and warehouses. He suggested that restructured factory workflows built around robotics could generate "5x to 10x" productivity gains in repetitive tasks.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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