Bosch outsells nearly every software company in the automotive industry, but nobody in Silicon Valley thinks of Bosch as a software company. That blind spot is the entire thesis of this episode: the physical world runs on trillions of dollars of GDP that AI has barely touched, and the founders who win there won’t come from the industries they’re disrupting.
In this episode, Bilal Zuberi explains why we’re entering the era of Physical AI, where intelligence moves beyond screens and becomes embedded inside machines, factories, vehicles, robots, and infrastructure.
While thousands of startups compete to automate office work, some of the biggest opportunities are emerging inside industries that have historically been underserved by modern software. Automotive, aerospace, construction, defense, manufacturing, logistics, and healthcare are all undergoing fundamental transformation as AI becomes deeply integrated into physical systems.
Inside the episode:
Why Physical AI may become the largest AI opportunity of the next decade
Why software is only the beginning of AI’s economic impact
How AI could accelerate breakthroughs in chemistry, healthcare, materials science, and scientific research
Why manufacturing, automotive, defense, construction, and industrial systems are becoming AI’s next frontier
Mike Maples’ framework for why some founders looked at GPS on the iPhone 4 and saw Uber and DoorDash while everyone else just saw a map
How a nation-state cyberweapon created an entire industrial cybersecurity category, and how a company built on discovering unpatched machines on operational networks became a billion-dollar acquisition by Mitsubishi Electric
The investment philosophy Bilal has followed through multiple technology cycles
The enormous market size hiding behind traditional physical industries
Real portfolio examples spanning industrial cybersecurity, autonomous mobility, and defense technology
Practical advice for founders building companies at the intersection of AI and the physical world
Watch Full Episode on YouTube:
About Bilal Zuberi
Bilal Zuberi is the Founder and Managing Partner of Red Glass Ventures, an early-stage venture firm investing in AI, robotics, industrial technology, defense, healthcare, and other sectors transforming the physical world. Previously, he spent nearly 12 years as a General Partner at Lux Capital, where he backed companies including Applied Intuition, Nozomi Networks, Saildrone, Desktop Metal, Aurora Solar, and Nominal. A graduate of MIT with a background in physical chemistry and materials science, Bilal is known for his investment thesis that the next generation of category-defining companies will emerge at the intersection of AI and the physical economy.
Connect with Bilal Zuberi: https://www.linkedin.com/in/bzuberi/
About the Host
Nilanjana Bhowmik is a General Partner at Converge and host of the Post Money Podcast, where she speaks with founders, investors, and industry leaders shaping the future of technology, innovation, and venture capital. Through in-depth conversations, Post Money explores the ideas, decisions, and trends driving the next generation of transformative companies.
Connect with Nilanjana Bhowmik: linkedin.com/in/nilanjanabhowmik
Converge VC website: converge.vc
