Introduction
The World Economic Forum (WEF) has long been a crucible for ideas that shape the future of industry, and in 2025 it continued that tradition by hosting the New Drivers of Industry Transformation Meeting. Among the speakers was DEEPX, a rising star in the semiconductor arena, whose CEO Lokwon Kim presented a bold vision he calls “Physical AI.” This concept, which seeks to embed artificial intelligence directly into the physical fabric of devices and systems, promises to redefine how businesses harness machine learning. By championing ultra‑low‑power AI chips, DEEPX aims to bring the intelligence that once lived in cloud data centers to the edge, where real‑time decisions can be made with minimal latency and energy consumption. The WEF’s decision to spotlight DEEPX as the first AI semiconductor company to receive this platform underscores the growing importance of hardware innovation in the AI ecosystem. In this post, we unpack the implications of Physical AI, explore DEEPX’s technological approach, and examine how this development could accelerate industry transformation across sectors ranging from automotive to manufacturing.
The Vision of Physical AI
Physical AI is more than a marketing buzzword; it represents a paradigm shift in how artificial intelligence is integrated into everyday objects. Traditionally, AI models are trained on powerful servers and then deployed to devices that merely act as sensors or actuators. Physical AI flips this relationship by embedding lightweight, yet highly capable, neural processors directly into the hardware that performs the tasks. This integration allows devices to process data locally, reducing the need to transmit large volumes of information to remote servers. The result is a system that is faster, more secure, and far more energy efficient.
DEEPX’s articulation of Physical AI focuses on three pillars: low power consumption, high integration density, and seamless interoperability with existing manufacturing processes. By achieving these goals, the company envisions a future where AI is not an add‑on but a native component of every electronic system. Imagine a factory floor where each sensor, conveyor belt, and robotic arm contains its own AI engine, capable of predictive maintenance and adaptive control without waiting for cloud‑based instructions. Or consider autonomous vehicles that rely on on‑board AI chips to interpret sensor data in real time, dramatically reducing reaction times and improving safety.
DEEPX’s Ultra‑Low‑Power AI Chips
At the heart of Physical AI are DEEPX’s ultra‑low‑power AI chips. These semiconductors are engineered to deliver high computational throughput while consuming a fraction of the power required by conventional GPUs or CPUs. The company leverages advanced process nodes and custom architecture to achieve this balance. One of the key innovations is the use of mixed‑precision arithmetic, which allows the chips to perform calculations with reduced bit widths without sacrificing accuracy. This technique is particularly effective for inference workloads, where the model’s parameters can be stored in lower precision formats.
Another critical aspect of DEEPX’s design is its focus on hardware‑software co‑design. By collaborating closely with AI framework developers, the company ensures that its chips can run popular deep learning models with minimal modification. This compatibility lowers the barrier to adoption for enterprises that already have established AI pipelines. Moreover, the chips support a range of neural network topologies, from convolutional networks used in computer vision to recurrent architectures employed in natural language processing.
Energy efficiency is not merely a technical specification; it is a strategic advantage in the context of edge computing. Devices that operate on battery power, such as drones, wearables, and remote sensors, can now run sophisticated AI models for extended periods. This capability opens new markets for DEEPX, including environmental monitoring, precision agriculture, and smart city infrastructure.
Implications for Industry Transformation
The introduction of Physical AI has far‑reaching implications for multiple industries. In manufacturing, the ability to embed AI directly into machinery can lead to unprecedented levels of automation and quality control. Machines can detect defects in real time, adjust parameters on the fly, and predict component failures before they occur. This proactive approach reduces downtime, lowers maintenance costs, and improves product consistency.
In the automotive sector, on‑board AI chips are essential for the next generation of autonomous vehicles. The latency introduced by sending data to cloud servers is unacceptable for safety-critical decisions. By processing sensor inputs locally, vehicles can respond to obstacles, traffic signals, and road conditions with millisecond precision. Additionally, the reduced power draw of ultra‑low‑power chips aligns with the growing emphasis on electric vehicles, where every watt saved translates to longer range.
Healthcare also stands to benefit from Physical AI. Implantable medical devices, such as pacemakers or glucose monitors, can incorporate AI to monitor patient data continuously and alert clinicians to anomalies. The low power consumption ensures that these devices can operate for years without requiring surgical replacement of batteries.
Beyond these sectors, the democratization of AI through edge chips could spur innovation in consumer electronics, robotics, and even space exploration. As more devices become intelligent, the line between hardware and software blurs, creating a new ecosystem where intelligence is distributed rather than centralized.
Challenges and Opportunities
While the promise of Physical AI is compelling, several challenges must be addressed. One of the foremost is the need for robust security mechanisms. Embedding AI into physical devices increases the attack surface, making it imperative to incorporate hardware‑level encryption and secure boot processes. DEEPX has acknowledged this concern and is reportedly developing a secure enclave architecture to protect model weights and inference data.
Another challenge lies in the standardization of interfaces. For Physical AI to achieve widespread adoption, industry players must agree on common communication protocols and performance benchmarks. The WEF’s platform provides an opportunity for stakeholders to collaborate on these standards, ensuring that devices from different vendors can interoperate seamlessly.
On the opportunity side, the convergence of AI and hardware opens new revenue streams for semiconductor companies. By positioning themselves as enablers of edge intelligence, firms like DEEPX can capture value across multiple verticals. Moreover, the shift toward Physical AI aligns with global sustainability goals, as lower power consumption translates to reduced carbon footprints.
The World Economic Forum’s Role
The WEF’s decision to feature DEEPX at the New Drivers of Industry Transformation Meeting signals a broader recognition of hardware’s role in AI’s future. By bringing together policymakers, industry leaders, and technologists, the forum creates a fertile ground for cross‑sector collaboration. The dialogue generated at such events can accelerate the adoption of Physical AI by aligning regulatory frameworks with technological capabilities.
Furthermore, the WEF’s emphasis on responsible innovation ensures that the deployment of AI chips is guided by ethical considerations. Discussions around data privacy, algorithmic bias, and workforce displacement are integral to shaping a future where AI benefits all stakeholders.
Conclusion
DEEPX’s unveiling of Physical AI at the World Economic Forum marks a pivotal moment in the evolution of artificial intelligence. By marrying ultra‑low‑power semiconductor technology with edge computing, the company is poised to transform industries that rely on real‑time decision making. The vision of embedding intelligence directly into physical devices promises faster, safer, and more energy‑efficient systems across manufacturing, automotive, healthcare, and beyond. While challenges such as security and standardization remain, the opportunities for innovation and sustainable growth are immense. As the world moves toward a future where AI is no longer a distant cloud service but a ubiquitous component of everyday objects, Physical AI stands at the forefront of this transformation.
Call to Action
If you’re an industry professional, investor, or technology enthusiast, now is the time to engage with the Physical AI movement. Explore how DEEPX’s low‑power chips can be integrated into your products or services, and consider collaborating with other stakeholders to shape the standards that will govern this emerging field. Attend upcoming WEF sessions, participate in industry working groups, and stay informed about the latest developments in AI hardware. By actively contributing to the dialogue and adoption of Physical AI, you can help accelerate a future where intelligent systems are seamlessly woven into the fabric of our world.
