Designing the Physical World with AI

2026-06-11 · Source: The a16z Show · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Construction Technology & Building · Depth: Advanced, extended

Summary

A discussion featuring Alex Modon of Unlimited Industries and Davide Asnaghi of Diode Computers explores the shift of AI from software to the physical world, focusing on automating construction and electronics design. Unlimited Industries aims to automate end-to-end pre-construction, generating globally optimized IFC packages by exploring thousands of design permutations, with a 10-year vision for fully automated construction. Diode Computers uses AI to design and manufacture custom circuit boards faster, reframing electronics design as code for AI models. They anticipate full automation for a sub-segment of circuit board design within two years, leveraging existing robotics and open-sourcing their core compiler toolchain (diodink/PCB). Both companies address challenges like entrenched industry practices, misaligned incentives, and the scarcity of physical world data by emphasizing vertical integration and model-led approaches.

Key takeaway

For Directors of AI/ML or entrepreneurs aiming to disrupt traditional physical industries, this discussion highlights that success hinges on vertical integration and reframing complex physical design problems as code. Focus on building infrastructure that allows AI models to generate manufacturable outputs, even if it means owning more of the value chain. Your ability to reduce project timelines and costs, rather than just engineering expenses, will drive adoption in sectors like construction and electronics manufacturing.

Key insights

AI is transitioning from software to physical world applications, automating complex design and manufacturing processes by treating physical systems as code.

Principles

• Reframing physical design as code simplifies AI integration.
• Vertical integration is crucial for industry change.
• Incentive structures dictate technology adoption.

Method

Unlimited Industries uses AI agents to generate code within a robust ontological model, exploring thousands of design permutations for optimized IFC packages. Diode Computers developed a compiler that allows AI models to write Python-like code for circuit board design, bootstrapping with validated blocks.

In practice

• Automate pre-construction to generate globally optimized IFC packages.
• Use AI to design manufacturable circuit boards for 100% automation.
• Open-source core toolchains to foster data generation.

Topics

• Physical World AI
• Construction Automation
• Electronics Design
• Circuit Board Manufacturing
• AI in Manufacturing
• Vertical Integration
• Generative Design

Best for: AI Engineer, Director of AI/ML, Entrepreneur

Related on AIssential

• How AI is Transforming Manufacturing End-to-End — AI is rapidly integrating into manufacturing, collapsing design and production cycles and improving operational efficiency.
• STOP TREATING AI AS A BOLT-ON: CONSTRUCTION BUSINESSES MUST EMBED IT TO THE CORE TO UNLOCK OUTCOMES — AI must be embedded as core infrastructure, not a standalone tool, to achieve transformative outcomes in construction.
• Solving the Expertise Gap with AI in Manufacturing - with Antoine Bisson of Poka — Digitizing tribal knowledge with AI transforms manufacturing training and operations, bridging expertise gaps.
• NVIDIA and Partners Showcase the Future of AI-Driven Manufacturing at Hannover Messe 2026 — AI, accelerated computing, and robotics are converging to transform manufacturing design, simulation, and factory operations.
• Industrial AI Development: How Smart Automation is Reshaping Manufacturing Efficiency — Industrial AI transforms manufacturing into intelligent, data-driven ecosystems for predictive optimization and cost reduction.
• AI Can See You Through Walls Now — Practical considerations, not just grand theories, will shape AI's integration into daily life and regulatory frameworks.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by The a16z Show.