Physical AI = AI soft power × Physical hard power × Form factor × Real user needs
The brain — what the product understands, reasons, and generates
The body — sensors that capture data phones cannot reach
The interface — shape that fits naturally into human life
The market — real pain point with willingness to pay
T1=mature, T2=12-18mo, T3=reject. One model release can shift T3→T1 overnight.
Per-interaction cost. Token cost is the fastest variable: ~10x annual decline.
🟢 form accelerates · 🟡 neutral · 🔴 10x+ value needed.
“Successful Physical AI products enhance existing behaviors. Failed ones try to create new behaviors.”