Eclipse Ventures Bets Big on “Physical AI” with $1.3 Billion Fund, Targeting the Next Technological Era

Eclipse Ventures, the Palo Alto-based venture capital firm known for its aggressive investments in the “physical world,” has just closed a staggering $1.3 billion in fresh capital. This massive war chest is split between a $591 million early-stage incubation fund and a growth-oriented vehicle, signaling the firm’s unwavering commitment to what it sees as the next great technological wave: the convergence of artificial intelligence with the tangible, physical world.

A quick scan of Eclipse’s recent portfolio reveals a clear strategic direction. The firm has been pouring money into companies that are redefining industries by merging advanced AI with real-world applications. From Arc, the electric boat developer making waves in sustainable marine transport, to Redwood Materials, the battery recycling powerhouse backed by Google, Eclipse is all-in on startups that are building the infrastructure of tomorrow. Other notable investments include Bedrock Robotics (self-driving construction vehicles), Wayve (autonomous vehicle technology), and Mind Robotics (industrial AI-powered robots). These aren’t just bets on innovation—they’re bets on the future of how we live, work, and move.

According to Jiten Behl, a partner at Eclipse, we are on the cusp of a new technological era. “Over the last two decades, we’ve seen multiple waves of innovation,” Behl explains. “The internet, mobile cloud, and social media eras have all transformed our digital lives. But this is the first time where innovation is moving from our screens into the physical world. We’re going to see advanced levels of intelligence, along with actual actions, in terms of solving problems in the real, physical world.”

This shift is being driven by a perfect storm of talent, technological breakthroughs, surging demand, supportive policy, and, crucially, capital. The term “physical AI” has become ubiquitous, reflecting a broader recognition that AI is no longer confined to data centers and smartphones—it’s now powering robots, vehicles, energy systems, and more. Eclipse’s new fund is a bold statement of intent: the firm is ready to back the pioneers who will build this new physical AI ecosystem.

But Eclipse isn’t just following the crowd. While many investors are chasing the latest AI hype, Eclipse’s approach is distinctive. The firm is looking to invest across all physical sectors—transportation, energy, infrastructure, compute, and defense—with a unique twist: building a web, or ecosystem, of startups in overlapping fields that will likely become partners as they scale. “Scale is so important,” Behl emphasizes. “If you can put it together in a way where companies partner early on to build scale, to build proof points, it just then enables them to go after the next set of demand.”

In some cases, these startups will be incubated directly within Eclipse. The firm plans to build companies from this new fund, and while Behl is tight-lipped about specifics, he confirms that the process has already begun. “We’re definitely working on a couple of really cool ideas,” he hints, noting that Eclipse is particularly interested in startups that work across enterprises. The vision is to connect sectors, build scale across industries, and use data from multiple domains to train smarter AI models—creating a moat that benefits a broader group.

This ecosystem approach is more than just smart investing; it’s a blueprint for the future. By fostering partnerships between portfolio companies and their partners, Eclipse aims to accelerate the adoption of physical AI technologies and create a self-reinforcing cycle of innovation and growth. It’s a strategy that could redefine how industries operate and how we interact with the world around us.

As Eclipse Ventures doubles down on physical AI, the message is clear: the next era of technological innovation isn’t just digital—it’s physical, intelligent, and transformative. With $1.3 billion in fresh capital and a bold vision for the future, Eclipse is positioning itself at the forefront of this revolution, ready to back the startups that will build the intelligent physical world of tomorrow.

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