AI is leaving the screen and entering the real world.

In this episode, Martyn Briggs, Director at Bank of America Global Research and Head of the Thematic Investing team, breaks down what "Physical AI" actually means, why $41 billion was invested in it last year, and what comes next.

We cover:

• World models and the shift from generative AI to physical AI
• Why vehicles are being redesigned as robotic platforms, not mechanical ones
• The 158+ active robotaxi deployments worldwide and the path to commercial scale
• How to value AV companies
• China vs. the US: two very different playbooks for scaling autonomy
• Why Uber, Lyft, and others are locking in AV supply through offtake deals
• Could AV fleets be financed like REITs?
• Humanoid robots entering automotive factories, and why OEMs could become producers, not just buyers
• The bottlenecks that could slow everything down: regulation, vehicle supply, public acceptance

Timestamps:

• 00:00 - Introduction to physical AI and autonomous driving
• 02:00 - Defining physical AI: perception, reasoning, action in the real world
• 04:00 - Technologies enabling physical AI: sensors, models, edge compute
• 06:00 - World models: what they are and their importance beyond GPT-like models
• 08:00 - Who leads in developing world models: startups vs. hyperscalers
• 10:00 - From software-defined to AI-defined vehicles: design implications for OEMs
• 12:00 - Supply chain and chip ecosystem shift towards centralized compute
• 14:00 - Cross-industry transfer: trucks, mining, agriculture, defense
• 16:00 - Commercial deployment pace of robo-taxis and delivery vehicles
• 18:00 - Valuations and investment metrics for AV companies
• 20:00 - Cost reduction trends in sensors, especially LiDAR
• 22:00 - China's rapid scaling of AVs and international geopolitical implications
• 24:00 - International expansion and regional regulatory differences
• 26:00 - Valuations: milestones and fleet economics
• 28:00 - Asset light vs. asset heavy models: pros and cons
• 30:00 - Private ownership and shared mobility convergence
• 32:00 - Financing, autonomy REITs, and infrastructure investments
• 34:00 - Broader applications: humanoid robots in factories and logistics
• 36:00 - Overlap between automotive and robotics supply chains
• 38:00 - Commercialization challenges: regulation, energy, consumer acceptance
• 40:00 - Future tech: simulation, synthetic data, accelerating deployment
• 45:00 - Key players in humanoid robotics and their strategic moves
• 48:00 - Cost trajectory for humanoid robots and industrial applications
• 50:00 - Business models: leasing, service, and integration strategies
• 52:00 - Critical constraints for autonomous driving: regulation, energy, public acceptance
• 55:00 - Major innovations to watch: simulation and synthetic data
• 56:00 - Final thoughts and upcoming innovations in physical AI
  
  ABOUT AUTONOMY INSIDERS: Autonomy Insiders is the podcast where global industry leaders in autonomous driving unpack their real-world insights. Hosted by Daniel Abreu Marques, focusing on the markets others overlook: Europe, China, and the Middle East.
  

  Newsletter: The AV Market Strategist
  LinkedIn: Daniel Abreu Marques

Most automakers are racing to master the most critical component of autonomous driving: the semiconductor.

Augustin Friedel, Associated Partner at MHP and an expert in software-defined vehicles, advanced driver assistance systems, and AI-enabled mobility, exposes how industry giants like Tesla, Rivian, and Chinese OEMs are not just buying chips—they’re designing their own to unlock better performance, lower costs, and greater control.

But what does it really take to build a competitive chip program? And why are industry-wide collaboration and strategic control points the future of automotive silicon? In this episode, Augustin breaks down the complex landscape of chips powering tomorrow's vehicles.

You'll discover why high-performance systems on a chip (SoCs) are vital to processing the massive amounts of sensor data—LiDAR, radar, cameras—that autonomous vehicles rely on for real-time decision-making.

We delve into the competitive dynamics among global chip providers—Nvidia, Mobileye, Qualcomm—and how regional geopolitics shape the supply chain. Augustin reveals why automakers are increasingly pushing toward in-house chip development, with companies like Xpeng and Rivian seeking to reduce dependency on Western suppliers, while others form joint ventures to share the hefty R&D costs.

Why does chip scarcity shape strategic decisions? Augustin discusses the wake-up call from the recent semiconductor shortages and what it means for securing supply chains in an uncertain geopolitical climate. Plus, he explores the evolving role of Tier 1 suppliers, the ecosystem lock-ins created by software layers, and the choice OEMs face between vertical integration and modular solutions.

Get ready to understand the race for automotive silicon leadership—because in autonomous driving, chips aren’t just components, they’re the foundation of the future.

Timestamps

00:00 - Introduction to the role of chips in autonomous driving
00:17 - Why OEMs are driving in-house semiconductor programs
01:53 - What is a System on a Chip (SoC) and why is it critical?
03:08 - The importance of high-performance chips for self-driving cars
04:00 - Criteria for choosing autonomous driving chips: performance, energy efficiency, thermal management
07:12 - Major players in autonomous driving computing platforms besides Nvidia
08:20 - Regional differences in chip providers: Nvidia, Mobileye, Chinese local players
09:23 - Distinguishing between SAE Level 2+, Level 3, and Level 4 chips
10:31 - Cost considerations and chip price ranges for autonomous vehicles
11:44 - Why OEMs are developing in-house chips (Tesla, Rivian, Xiaopeng)
13:16 - The role of scale and volume in chip design investments
15:22 - Vertical diversification: robotics and other verticals feeding into chip strategy
16:27 - Competitive landscape: Will Nvidia and Mobileye maintain dominance?
18:17 - Software ecosystems and integration lock-in effects in chip selection
20:38 - OEMs' differentiation strategies: performance, cost, supply security
22:43 - Market penetration of high-performance chips in current global vehicle fleets
24:16 - Regional differences: China’s lower-speed focus and localized chip strategies
25:27 - The geopolitical aspects of in-house chip development in China
33:33 - Ecosystem of semiconductor design: TSMC, foundries, and supply chain dependencies
36:41 - Can OEMs produce chips entirely in-house? The necessity of foundries like TSMC
37:45 - Why smaller node sizes (4nm vs 6nm) matter for performance and energy efficiency
39:24 - The challenge of selecting the "best" chip for Level 4 autonomous vehicles
41:18 - Strategic questions for OEMs: build, partner, or buy?
44:54 - Final thoughts: navigating the complex semiconductor landscape for sustainable growth

Charlotte Eisner, Head of Commercialization and Partnerships at Bolt, joined Daniel Abreu Marques on Autonomy Insiders to discuss Bolt's autonomous strategy, strategic partnerships with Pony AI and Stellantis, and their ambitious plan to deploy 100,000 autonomous vehicles across Europe by 2035. The operational backbone of Bolt’s strategy is leveraging strategic partnerships and policy expertise to overcome the challenges of homologation and regional disparities in autonomous vehicle adoption. By collaborating with Pony AI for software and Stellantis for vehicle platforms, Bolt aims to create a scalable, safe, and efficient autonomous fleet without building its own technology from scratch.

In the field, Bolt is rigorously preparing to apply its strategy across various European cities, navigating complex regulatory environments and ensuring data sovereignty. Bolt’s approach focuses on creating a seamless integration of autonomous technology into urban mobility, enhancing safety and operational efficiency.

Looking ahead, Charlotte envisions a future where Bolt's autonomous fleet significantly contributes to making cities more livable, reducing the number of vehicles on the road, and providing sustainable mobility solutions. This evolution aims to transform urban transportation by integrating autonomous vehicles into everyday life, enhancing safety, and providing efficient mobility options.

Chapters

00:00 Intro

00:44 Introduction Guest

05:06 Charlotte's Mission in Mobility

09:33 Challenges in the European Autonomous Vehicle Market

12:44 The Global Context of Autonomous Vehicles

25:36 Bolt's Strategic Intent in Autonomous Driving

30:02 Bolt's Ambitious Goals for Autonomous Vehicles

34:59 The Power of Demand and Data

36:43 Navigating Regulations and Market Complexity

40:43 Strategic Partnerships and Technology Integration

41:59 Addressing Data Sovereignty Concerns

46:03 Collaborating with Stellantis for AV Platforms

48:33 Liability in Autonomous Vehicle Operations

50:15 Preparing for City Deployments

53:16 User Experience in Autonomous Rides

55:30 The Role of ECAVA in European Mobility

58:42 Europe's Position in the Global AV Landscape

01:00:52 Future Projections for Autonomous Rides

01:03:18 Summary & Closing Thoughts

Welcome to Autonomy Insiders!

Autonomy Insiders goes behind the headlines of the autonomous vehicle industry. Your Host Daniel Abreu Marques talks to the leaders shaping AV, with a special focus on the markets most media ignores.