Microsoft, NVIDIA and Infineon launch physical AI lab for startups

Bridging the gap from digital to physical

The Physical AI Growth Lab represents a new effort to move artificial intelligence beyond screens and into the physical world. This field, known as physical AI, combines foundation models with robotics and simulation to power machines in factories and logistics networks. The goal is to turn digital intelligence into actual motion and industrial action.

The initiative is a joint effort between UnternehmerTUM Accelerator, Microsoft, Infineon Technologies, and NVIDIA. These four partners aim to provide the necessary infrastructure for startups to scale their products. By combining cloud computing, semiconductor hardware, and industrial expertise, they hope to create a complete path from a prototype to a commercial product.

The program is specifically designed to support startups based in Europe, the Middle East, and Africa (EMEA). It targets companies that are building for these regions and have already developed a working prototype or minimum viable product. This focus ensures that the technology being developed has a clear path toward real-world application in industrial settings.

The technical stack for robotics

Startups selected for the program will receive a comprehensive suite of tools from the four lead partners. Microsoft will provide USD 350,000 in Azure Credits along with access to its global enterprise network. Additionally, startups will gain access to NVIDIA's SDKs, open models, and the benefits of the NVIDIA Inception program for early-stage companies.

Infineon plays a critical role by providing the hardware foundation required for physical AI systems to function. This includes a semiconductor stack consisting of power semiconductors, microcontrollers, sensors, and connectivity solutions. These components are what allow an AI model to actually interact with and move objects in the physical environment.

NVIDIA will deploy its full physical AI stack to help startups with training, simulation, and edge deployment. This means companies can test their robotics in virtual environments before moving them to the real world. By using one platform for these different stages, startups can scale their operations more efficiently without switching between different technology providers.

Targeting the European market

The partners believe that Europe is uniquely positioned to lead in the physical AI space. The region is expected to hold approximately 22.5% of the global physical AI market in 2026. This growth is supported by regulatory clarity from the EU AI Act and Germany’s High-Tech Strategy 2025.

The program aims to help startups become category leaders before the market consolidates around a few dominant platforms. By providing early access to enterprise customers and a network of 200+ investors, the lab seeks to accelerate commercial success. This support is intended to help founders navigate the complexities of industrial adoption and large-scale manufacturing.

UnternehmerTUM Accelerator, which is ranked as Europe’s leading startup hub for the third consecutive year, will lead the program. They bring a network of over 170 deep tech experts to provide mentoring. The accelerator has a history of launching scalable companies and has helped previous startups raise almost 4 billion EUR in funding.

Timeline and eligibility

The Physical AI Growth Lab will run from January to April 2027 in a hybrid format. This means that while much of the work will be remote, there will be specific in-person sessions held in Munich. The program is designed to be intensive, offering a concentrated period of growth for 10 to 15 selected startups.

To be eligible, startups must have been founded within the last three years and have a team of up to 20 people. They must also include at least one technical co-founder to ensure the team can handle the complex engineering requirements of robotics. The program is equity-free, meaning the partners are providing resources and mentorship without taking ownership of the companies.

Interested founders can apply now, with a deadline set for November 13, 2026. The goal is to identify the most promising startups that can turn prototypes into market-ready solutions. This collaboration marks a significant step in strengthening Germany's position as a hub for industrial AI and autonomous robotic systems.