BlackBerry pivots to physical AI and robotics software

From phones to physical AI

BlackBerry has undergone a significant transformation since its days as a dominant force in the smartphone market. While the company was once known for handheld devices with physical keyboards, it has reinvented itself as a provider of underlying software for complex systems. CEO John Giamatteo describes this shift as moving toward products that are pervasive around the world rather than being held in a person's hand.

The company is now focusing on what it calls physical AI. Unlike generative AI, which is designed to create text or images, physical AI enables machines and robots to interact with and navigate the physical world. BlackBerry aims to provide the software foundation that allows these machines to operate with high levels of safety and reliability.

This transition is a primary driver of the company's current growth strategy. By leveraging its history in the automotive sector, BlackBerry is positioning itself to be a key player in the emerging market for robotics. The company is looking to expand its reach into government systems, medical instrumentation, and complex supply chains.

The QNX software foundation

At the heart of BlackBerry's current business is the QNX operating system. This software provides the underlying instructions for a wide range of critical functions, including braking systems and certain semi-autonomous driving features in cars. Because of its reliability, QNX is currently embedded in more than 275 million vehicles worldwide.

The success of QNX in the automotive space has created a significant financial tailwind for the company. BlackBerry recently reported that its QNX royalty backlog surpassed $1.2 billion, which represents an increase of more than $250 million over just two quarters. This growth is being fueled by several factors, including the transition of automakers to more advanced computing systems and an expanded suite of software offerings.

The company is also seeing a surge in demand for applications involving physical AI. By providing the software that helps machines move and react in real-time, BlackBerry is building on the same safety standards it developed for cars. This experience is now being applied to a broader range of industrial and commercial machines.

Expanding into robotics

Robotics has already emerged as one of the fastest-growing segments within the QNX business. The company is identifying specific opportunities in the movement of goods and automated labor. This includes automated mobile robots (AMRs), autonomous forklifts, and even skateboards designed to transport pallets to docking stations.

A key factor in this expansion is BlackBerry's partnership with Nvidia. The relationship began in the automotive sector, but it has since expanded to include other types of machinery. Giamatteo noted that Nvidia has standardized on QNX as the platform of choice for its Halos Safety Stack, which provides a framework for safe machine operation.

This partnership has opened a significant pipeline of opportunities for the company. By becoming the standard for safety stacks in these machines, BlackBerry can reach a wider variety of industries. The goal is to move beyond the car and into any environment where a robot needs to move safely through a physical space.

Market recovery and outlook

Investors have reacted positively to BlackBerry's pivot and its shift away from the smartphone era. Following years of struggle after the rise of touchscreen devices, the company's stock has seen a significant turnaround. Shares have surged 142% in 2026, reflecting a renewed interest in its industrial software capabilities.

The scale of the company's comeback is notable when compared to its peak. In 2008, a year after the first iPhone launched, BlackBerry's market cap reached nearly $85 billion. While its current market cap is approximately $5.4 billion, the company is finding new ways to generate value through its software royalties and industrial partnerships.

Looking forward, the company's growth depends on its ability to capture the emerging demand for physical AI. As more industries look to automate their supply chains and manufacturing processes, BlackBerry's experience with safety-critical software becomes increasingly relevant. The company is betting that its software will become the invisible backbone of the next generation of robotics.