Pittsburgh-based Skild AI has raised around $1.4 billion at a $14 billion valuation, signaling a major influx of capital into the development of AI systems designed to automate physically demanding jobs.
Public Concerns Rise as AI Moves Beyond Office Walls
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Automation is no longer limited to white-collar roles, sparking anxieties about the future of blue-collar work.
- Venture capital is pouring into startups building “brains” for robots intended for construction, warehouses, and energy facilities.
- A Pew Research Center poll revealed that nearly half of U.S. adults are more worried than excited about the impact of AI on daily life.
- While AI may not eliminate entire job categories, experts predict a shift in labor needs, emphasizing oversight, safety, and integration.
- Toronto-based Waabi raised up to $1 billion, potentially the largest funding round for a Canadian startup focused on autonomous vehicles.
AI-driven job anxiety has largely centered on office roles, with concerns about the impact on analysts, support teams, and other technical positions. Now, automation is poised to disrupt workplaces reliant on physical labor and unpredictable conditions. Startups are attracting billions in investment to create AI “brains” for robots capable of operating in challenging environments like construction sites, warehouses, and energy facilities. If successful, this technology could automate tasks such as welding, inspection, and materials movement – jobs previously considered difficult to automate.
Billions Fuel Development of Robot Software
Venture funding is rapidly flowing to companies developing the software that will power these robots, enabling them to handle a wide range of physical tasks in real-world settings. According to reports, this software aims to give robots a deeper understanding of physics and other real-world conditions, allowing them to adapt to changing environments. Once equipped with the necessary physical tools, robots could potentially learn to perform almost any task, from plumbing to cooking.
Beyond Skild AI’s substantial funding, Waabi, based in Toronto, secured up to $1 billion in a funding round that could represent the largest ever for a Canadian startup specializing in robotaxis and self-driving trucks. “It’s obvious that the physical AI moment is here,” Waabi founder and CEO Raquel Urtasun told Axios. “Autonomy is the first application where scale is going to happen,” she added.
FieldAI has also raised nearly $400 million to concentrate on “dirty, dull, or dangerous” industries, including energy and logistics, with the goal of supporting tasks in infrastructure and data center construction.
Timeline for Widespread Adoption Remains Uncertain
Despite the significant investment, predicting the extent and timeline of the impact on blue-collar jobs remains challenging. Even if AI-powered robots outperform humans, the high cost of hardware and the logistical challenges of transitioning to robotic systems may offset potential efficiency gains. Experts suggest that AI is more likely to reshape jobs than eliminate them entirely, shifting the focus from routine tasks to oversight, safety, and integration.
What jobs are most at risk from AI automation? According to recent analysis, roles involving repetitive physical tasks and data processing are particularly vulnerable to being replaced by AI-powered systems.
