Silicon Valley sees resurgence in hardware as venture capital flows into deep tech

Venture capital is flooding into deep tech startups that build physical things: robots, semiconductors, and the infrastructure required to keep AI systems running at scale. Robotics and physical AI startups raised $16.3 billion across 492 deals in Q1 2026, followed by $18.6 billion across 450 deals in Q2 2026, according to PitchBook data. Hardware companies now account for nearly one-third of US venture capital resources deployed this year. The numbers tell a clear story Global funding in robotics and physical AI climbed from roughly $4 billion in 2019 to $26 billion in 2025. By mid-2026, the sector had already surpassed $23 billion, with half the year still ahead. SVB’s 2026 Physical AI and Robotics Report projects $120 billion in total VC investment into hardware companies for the full year if the current pace holds. Andreessen Horowitz raised a dedicated $1.1 billion fund in August 2026 called “Machine Age,” focused exclusively on chips and robotics infrastructure. Recent rounds include a $10 million seed for Robocurve, a robotics benchmarking firm, in September 2026, alongside multiple megadeals scattered across the sector. Defense autonomy is also emerging as a major funding m...