Nvidia Unveils Humanoid AI Brain to Address Labor Shortage

Nvidia Corporation is making a significant investment in the future of embodied AI. The company has introduced a new artificial intelligence model that is designed to enhance the cognitive abilities of humanoid robots, potentially addressing the increasing labor shortages in various sectors.

What Happened: During the GTC 2025 event held in San Jose, Nvidia announced the launch of Groot N1, a groundbreaking foundation model aimed at developing humanoid robots. CEO Jensen Huang highlighted this innovation as a pivotal advancement in the realm of embodied AI.

Groot N1 builds on the previous Project Groot showcased at last year's conference, further evolving the company's efforts in robotic intelligence.

This new model features a unique slow-thinking system that allows robots to better perceive their environments, understand instructions, and formulate responses. Complementing this is a fast-thinking system that executes the plans devised, enabling the robots to carry out complex tasks such as manipulating multiple objects.

The significance of this development cannot be overstated. Huang suggested that this technology could become one of the largest industries globally. He pointed out that by the end of the decade, the global workforce might fall short by at least 50 million workers. In this scenario, companies might find themselves needing to compensate robots similarly to human workers, potentially offering salaries around $50,000 annually.

In addition, Nvidia has made Groot N1 an open-source model, providing tools such as simulation frameworks and blueprints to generate synthetic training data that will assist in the development of humanoid robots.

During Huang's keynote, he expressed an exciting vision for the future impacts of AI across numerous fields, particularly emphasizing physical AI, which involves robotics. He shared a visual representation showcasing the growing need for Blackwell GPUs. This rise is attributed to the demand stemming from generative AI, agentic AI, and now physical AI advancements.

As the event unfolded, Huang contrasted past descriptions of GTC as the "Woodstock of AI", stating that it is now akin to the "Super Bowl of AI" due to the scale and significance of the technologies presented.

Additionally, Huang announced a partnership with General Motors to boost the development of autonomous vehicle capabilities.

Price Action: Following the announcement, Nvidia's stock experienced a 3.43% drop, closing at $115.43. After-hours trading saw further decline to $114.78. This recent downturn reflects a year-to-date decline of 16.54% in the company’s stock value.

Nvidia, AI, Robots