AI startups are raising billions of dollars to develop "brains" for robots that could work everywhere from oil rigs to construction sites.

Why it matters: Blue-collar workers may have as much to fear from AI job disruption as do white-collar workers.

The big picture: These software "brains" understand physics and other real-world conditions — helping robots adapt to changing environments.

• Some of these AI-powered robots may be humanoids, others may not — form matters less than functionality.
• Plumbing, electrical, welding, roofing, fixing cars, making meals — there really isn't much of a limit. Think about it a bit like C-3PO and R2-D2, but without the snarky personalities.

Zoom in: There isn't yet agreement on the smartest way to apply AI to robotics.

• Some companies are gathering gobs of real-world data to train their models.
• Others are working on less expensive "world models," which are trained on simulated data.

Follow the money: Toronto-based Waabi last week raised up to $1 billion, with an initial focus on robo-taxis and self-driving trucks.

• "It's obvious that the physical AI moment is here," Waabi CEO Raquel Urtasun told Axios. "Autonomy is the first application where scale is going to happen.
• Pittsburgh-based Skild AI just raised around $1.4 billion at a $14 billion valuation. Its motto: "Any robot. Any task. One brain."
• FieldAI last month raised nearly $400 million to focus on "dirty, dull, or dangerous" industries like energy and logistics. Its software could be used by robots to help build data centers — AI enabling AI, leaving humans on the sidelines.

Reality check: It's impossible to know how many blue-collar jobs could be rendered irrelevant by "embodied AI," or over what time frame.

• Even if an AI-powered robot can outperform a human, the added hardware and switching costs may outweigh the added efficiencies.
• At least for now.

The bottom line: AI optimists argue that there won't be net job losses, regardless of collar color, because new technologies create new labor needs.

• AI critics caution that the past isn't always predicate, given that AI represents a more extreme change than we've ever before experienced. And it could extend well beyond chatbots.

OpenAI may no longer receive a $100 billion investment from Nvidia (Nasdaq: NVDA), as the WSJ reports that deal talks are "on ice."

Why it's the BFD: It's a reminder to read the fine print in AI mega-deal headlines.

Catch up quick: The two companies announced a strategic partnership last September, noting that Nvidia "intends to invest up to $100 billion in OpenAI" and that they "look forward to finalizing the details ... in the coming weeks."

• Media and markets read it as a done deal, but the process appears to have stalled "after some inside the chip giant expressed doubts."
• Nvidia now is expected to participate in an upcoming OpenAI fundrasing round, albeit with a much smaller check.

Market reax: Nvidia shares opened down more than 2% on Monday, wiping out over $95 billion in market value.

• Waymo, the robotaxi unit of Alphabet, is finalizing a $16b funding round at a $110b valuation, per the FT. Participants would include Dragoneer, Sequoia Capital, a16z, and Mubadala. axios.link/4qU05Wp

🚀 CesiumAstro, an Austin, Texas-based space and defense communications company, raised $270m. Trousdale Ventures led, joined by Woven Capital, Janus Henderson Investors, Airbus Ventures, Development Bank of Japan, MESH, and NewSpace Capital. It also secured as $200m financing package from JPMorgan and the Export-Import Bank of the U.S. axios.link/4bsRbdz

• VulcanForms, a Devens, Mass.-based digital metal manufacturing platform, raised $220m. Eclipse and 1789 Capital led, joined by Washington Harbour, Fontinalis, and IEQ Capital. axios.link/4k9n5hg

• Varo, an SF-based neobank, raised $124m in Series G funding led by Warburg Pincus, per Axios Pro. axios.link/4qXyBz9

🚑 Alan, a French health insurer, is in talks to raise more than €100m at a €5b valuation, per Bloomberg. axios.link/3ZM8EGC

• Fieldguide, an SF-based developer of AI-enabled tools for accountants, raised $75m in Series C funding at a $700m valuation led by Goldman Sachs Alternatives. axios.link/45Fu2kn

🚑 Biorce, a Barcelona-based AI clinical trials platform, raised $52m in Series A funding. DST Global Partners led, joined by Norrsken VC, YZR Capital, and Mustard Seed Maze. axios.link/4rqh2r6

• Plug, an EV marketplace, raised $20m in Series A funding. Lightspeed led, joined by Galvanize and insiders Autotech Ventures, Leap Forward Ventures and Renn Global. axios.link/4qO7Woh

• Loop AI, a provider of third-party delivery software to restaurants, raised $14m in Series A funding, per Axios Pro. Nyca Partners led, joined by Base10, Afore Capital, Converge, Alumni Ventures, Data Tech Fund, 9Yards Capital, and Operators Studio. axios.link/4bs2aE5

• Bits, a Stockholm-based provider of compliance and onboarding automation for fintechs and banks, raised €12m in Series A funding. Alstin Capital led, joined by Cherry Ventures, Unusual Ventures, and Alliance Ventures. axios.link/4tcjOSz

• Incard, a U.K. financial platform for digital companies, raised £10m in Series A funding. Smartfin led, joined by Founders Capital and MountFund. axios.link/4t8BCy5

• Architect Capital is in exclusive talks to buy a majority stake in OnlyFans at a $5.5b enterprise value, Axios has confirmed. axios.link/4rqIEwm

• Bain Capital agreed to buy Japanese personal-care group FineToday for around $1.29b from backers like CVC Capital Partners, per Nikkei. axios.link/46ivdX9

• Crestview Partners acquired Tailwind Hospitality, a Wilmington, N.C.-based operator of restaurants and retail concessions in non-hub and regional airports, from Palladin Consumer Retail Partners. axios.link/4kdIHJp

• Invio Automation, an Arsenal Capital Partners portfolio company, acquired Calvary Robotics, a Webster, N.Y.-based provider of robotics, automation solutions, and material handling systems. axios.link/4tbKgvt

• Patria Investments acquired Share Student Living, a Brazilian student housing property firm. axios.link/3MkybDI

• SunSource, a CD&R portfolio company, acquired Houston-area flow control supplier Vytl Controls Group from MiddleGround Capital. axios.link/3MfWJxI

• Tecium, a London-based provider of treasury and capital markets software, launched with a founding investment from Apax. axios.link/45L5KWd

• Thrive Holdings, an affiliate of Joshua Kushner's Thrive Capital, is investing $100m to form an IT services platform called Shield Technology Partners. axios.link/4a82SnH

🌍 Verdane and Scott Capital Partners acquired a majority stake in Bluewater Bio, a U.K. provider of sustainable solutions for water reuse. axios.link/4kaChel

Seven companies plan to go public this week on U.S. exchanges.

• Averin Capital Acquisition, a health and life sciences SPAC, filed for a $250m IPO. axios.link/3ZcKyVh

• Iron Dome Acquisition I, an Israeli tech and defense SPAC, filed for a $200m IPO. axios.link/3NPfj08

• Paloma Acquisition I, a precious metals SPAC, filed for a $150m IPO. axios.link/4thAEzG

• Moloco, a Redwood City, Calif.-based programmatic ad platform, is weighing an IPO, per Bloomberg. It's raised around $500m, most recently at a $1.6b valuation in 2024, from firms like Tiger Global, Fidelity, GPI Capital, and EDBI. axios.link/4a9oOi6

⚡ SOLV Energy, a provider of construction services for solar and battery projects, set IPO terms to 20.5m shares at $22-$25. It would have a $4.7b market cap, were it to price in the middle. It's owned by American Securities and plans to list on the Nasdaq (MWH). Flashback.

• ESAB (NYSE: ESAB) agreed to buy Canadian industrial technology distributor Eddyfi Technologies for US$1.45b from Novacap and La Caisse. axios.link/4kgRElp

🚑 Thoma Bravo hired Evercore and JPMorgan to find a buyer for Imprivata, a digital identity software provider for health care that could etch $7b, per Reuters. axios.link/4anKZT3

Giphy

🏈 Paul Allen's estate will put the Seattle Seahawks up for sale after it loses the Super Bowl, per ESPN. axios.link/4tdxtZu

• Aura, a Boston-based online safety solution that's raised nearly $1b from VCs, agreed to acquire Qoria (ASX: QOR), an Australian provider of student safety and wellbeing software. axios.link/4bxZDby

• Capgemini (Paris: CAP) is seeking to sell a unit that provides tech services to U.S. Immigration and Customs Enforcement (ICE), due to policy disagreements. axios.link/45GYMkZ

• CRH (NYSE: CRH) and Heidelberg Materials (Frankfurt: HEI) are in talks to buy the industy unit of Nordic construction company NCC AB (Sto: NCC) per Bloomberg. axios.link/3NQpKk2

• Eldorado Gold (TSX: ELD) agreed to acquire Canadian gold miner Foran Mining (TSX: FOM) for around C$3.8b. axios.link/4a7H7Eh

⚡ GeoPark (NYSE: GPRK) agreed to acquire Frontera Energy's (TSX: FEC) oil and gas exploration and production assets in Colombia for $375m in cash and up to $25m in earnouts. axios.link/3MfX2sm

• Constructor Capital, a Swiss "science-first" VC group, raised $110m for its debut fund. axios.link/464hp2D

• Qatar Investment Authority expanded its fund-of-funds program to $3b from $1b. axios.link/4rj3o96

🚑 Santé Ventures of Austin raised $330m for its fifth fund focused on health care and life sciences, per Axios Pro. axios.link/4taBkqe

• Capza promoted Antoine Druais to co-head of its midmarket flex equity team. axios.link/4asD8Ug

🚑 Connie Heil joined Brighton Park Capital as a principal focused on health care. She previously was with Arsenal Capital Partners. axios.link/49Z4qQA

• Jesse Solomon joined Paul, Weiss as a partner in the law firm's antitrust practice. He previously was with Davis Polk. axios.link/3LXGrcN

Devon Energy (NYSE: DVN) and Coterra Energy (NYSE: CTRA) today said they've agreed to merge in an all-stock deal that would create a U.S. shale producer worth around $58 billion.

• Devon shareholders would own around 54% of the combined company, with the deal expected to close in Q2.
• BFD flashback