Sereact, a startup focused on developing physical artificial intelligence (AI), has successfully raised $110 million in funding. This investment aims to enhance the capability of industrial robots to adapt to previously unencountered tasks through a new software architecture that enables real-time reasoning and consequence modeling.
The company’s primary focus is on its Cortex 2.0 model, which is designed to function similarly to large language models developed by OpenAI and Anthropic, but tailored for interaction with physical objects. Robots operating under this system do not require explicit instructions for every movement; they can comprehend the context of their tasks.
“The new model will allow robots to anticipate potential errors before they occur and act accordingly—much like a person tightening their grip on a coffee cup to prevent spills,” said Ralph Gühlde, CEO of Sereact.
Investors view Sereact’s technology as a significant step in the evolution of AI. While text-based models have reached a peak, the field of physical AI is just beginning to expand. Notably, investment in this sector soared to $27.6 billion in 2025.
Sereact’s software currently operates over 200 systems globally, ranging from simple manipulators to complex mobile platforms. One of the most promising applications for the company is in retail return processing. Sereact is in discussions with H&M to train robots to autonomously assess the condition of items and manage restocking through visual analysis.
To achieve this level of flexibility, Sereact integrates its proprietary technology with innovations from Nvidia, enabling machines to understand the laws of physics at an algorithmic level. With offices in Stuttgart, Zurich, and Boston, Sereact aims to become the ‘brain’ behind a new generation of industrial machines. Notably, former Formula 1 champion Nico Rosberg has invested in the startup.
Sereact has raised $110 million to enhance its physical AI technology, enabling robots to adapt to new tasks through advanced reasoning capabilities. The startup is exploring applications in retail and aims to integrate its systems with innovations from Nvidia.