Innovation in artificial intelligence no longer lives only inside data centers or cloud platforms. It now moves machines, guides robotic arms, powers industrial sensors, and transforms physical systems across manufacturing, healthcare, and logistics. On February 16, 2026, DIC Corporation took a decisive step into that future. The global chemicals and materials company partnered with Switzerland-based investment firm Emerald to accelerate business creation in the rapidly expanding Physical AI sector.
DIC and Emerald announced a $62 million initiative designed to support startups that integrate artificial intelligence with real-world hardware systems. The partnership focuses on building companies that combine advanced materials, robotics, machine learning, and industrial automation into scalable solutions.
Physical AI represents the next frontier of artificial intelligence. Software-driven AI models have reshaped digital services, but industries now demand intelligent systems that operate in factories, warehouses, hospitals, and energy plants. Companies require machines that adapt in real time, analyze complex data streams, and make decisions at the edge. DIC and Emerald recognize this shift and position themselves at the center of this transformation.
Why Physical AI Matters Now
Manufacturing leaders face mounting pressure to increase productivity while reducing waste and emissions. Supply chains demand flexibility and real-time monitoring. Healthcare systems need precision tools that support surgeons and laboratory technicians. Physical AI enables all these advancements by embedding intelligence directly into equipment and processes.
Robotics companies increasingly integrate machine learning models that allow machines to adjust movements instantly. Smart materials respond dynamically to environmental changes. Vision systems detect microscopic defects in production lines. These applications require deep collaboration between hardware engineers, AI developers, and materials scientists.
DIC brings decades of materials science expertise to the table. The company manufactures specialty chemicals, pigments, and advanced materials that serve industries worldwide. Emerald contributes global venture investment experience and a strong network across European and international startup ecosystems. Together, they aim to identify promising founders and provide both capital and strategic guidance.
The Structure of the Initiative
The $62 million platform will invest in early-stage and growth-stage startups focused on Physical AI solutions. The initiative emphasizes sectors such as advanced manufacturing, robotics, sustainable industrial systems, and smart materials.
Emerald will lead investment operations and sourcing activities. The firm will scout emerging startups across Europe, North America, and Asia. DIC will offer technical validation, industrial partnerships, and commercialization pathways. Startups will gain access to DIC’s research infrastructure, materials expertise, and global customer base.
This model goes beyond traditional venture funding. The partnership integrates industrial know-how with venture capital discipline. Founders will receive mentorship from industry veterans, engineers, and product development specialists. They will test prototypes within real industrial environments rather than simulated labs.
Strategic Timing in a Competitive Landscape
Global investment in AI continues to surge, but investors increasingly seek tangible applications that deliver measurable industrial impact. Physical AI startups attract attention because they bridge the gap between digital intelligence and operational efficiency.
Governments across Europe and Asia support industrial digitization initiatives. Policymakers encourage automation and sustainable manufacturing. This environment creates strong tailwinds for companies that develop robotics platforms, sensor-driven analytics systems, and intelligent production equipment.
DIC and Emerald act at a time when industrial transformation accelerates worldwide. Companies no longer experiment cautiously with AI; they deploy solutions aggressively to maintain competitiveness. Factories integrate AI-driven predictive maintenance. Warehouses deploy autonomous mobile robots. Chemical plants rely on sensor arrays that optimize processes continuously.
The new fund aims to capture this momentum and channel it into scalable ventures.
Collaboration as a Competitive Advantage
Startups in Physical AI face complex technical challenges. They must integrate hardware engineering, firmware development, AI model training, and regulatory compliance. Few founders can manage these tasks alone.
DIC offers a powerful advantage through its deep domain knowledge. The company understands industrial production lines, materials behavior, and performance standards. When a startup develops a new smart coating or sensor-embedded material, DIC can provide immediate technical validation.
Emerald complements this capability with its global investor network. The firm has backed numerous sustainability and industrial technology companies. Its experience in scaling hardware-focused startups strengthens the initiative’s execution capacity.
The partnership model encourages co-creation rather than simple financial backing. Startups will collaborate directly with industrial clients. They will refine solutions in live environments. This approach reduces commercialization risk and accelerates market adoption.
Focus on Sustainability and Efficiency
Physical AI also supports global sustainability goals. Intelligent systems can reduce material waste, lower energy consumption, and enhance process optimization. AI-powered monitoring systems identify inefficiencies instantly. Robotics can minimize hazardous exposure for workers while improving precision.
DIC has committed to advancing sustainable materials and circular economy practices. The company sees Physical AI as a tool that enables smarter resource management. Emerald has invested extensively in climate tech and sustainable innovation. The fund aligns naturally with environmental and efficiency objectives.
By targeting startups that combine intelligence with sustainable design, the initiative aims to deliver financial returns alongside measurable environmental impact.
Potential Startup Categories
The initiative may support companies developing:
- AI-enabled robotic systems for precision manufacturing
- Smart materials embedded with real-time sensing capabilities
- Autonomous quality control platforms
- Predictive maintenance systems powered by edge computing
- Industrial IoT platforms that integrate machine learning models
- Sustainable process optimization tools
Each of these categories represents a high-growth opportunity. Demand continues to rise as industries pursue digital transformation.
Global Reach with Local Execution
Emerald operates from Switzerland and maintains strong connections across European innovation hubs. DIC maintains a global footprint across Asia, Europe, and the Americas. The partnership will leverage this global reach to identify promising startups regardless of geography.
At the same time, the initiative will emphasize local industrial partnerships. Startups will benefit from regional pilot projects and on-the-ground collaboration. This balance between global vision and local execution increases the likelihood of scalable success.
Long-Term Vision
DIC and Emerald do not view Physical AI as a short-term trend. They see a structural shift in how industries operate. Over the next decade, AI will integrate deeply into machinery, materials, and industrial infrastructure. Companies that move early will shape standards and capture market leadership.
The $62 million initiative serves as a foundation for long-term ecosystem development. It may evolve into a broader platform that connects researchers, manufacturers, and entrepreneurs. By fostering early-stage innovation today, DIC and Emerald aim to build a pipeline of next-generation industrial technology leaders.
Conclusion
DIC Corporation’s partnership with Emerald signals a strong commitment to the future of intelligent industry. The $62 million Physical AI initiative combines capital, expertise, and global reach. It supports startups that merge artificial intelligence with tangible systems and industrial processes.
Physical AI will redefine how machines operate and how industries create value. Through strategic collaboration and focused investment, DIC and Emerald position themselves at the forefront of this transformation. Their initiative highlights a clear message: the next wave of AI innovation will not stay confined to code. It will move, sense, adapt, and build in the real world.
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