Google DeepMind’s Partnership With Boston Dynamics Might Have Kicked Off the Humanoid Robot Race

CES 2026 has come and gone, and while there was certainly a slew of fantastic showcases, I’d argue that one of the biggest developments came from Boston Dynamics as it unveiled its partnership with Google DeepMind (whose parent company is Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction)). Undoubtedly, 2026 might be the year when physical AI and robotics finally start to gain considerable momentum. And while Boston Dynamics’ Atlas robot is arguably stealing the show, I certainly wouldn’t bet against Google DeepMind as it looks to become the brains of the next generation of capable robots.

Undoubtedly, it’s just a matter of time before AI finds its way into the physical realm, either through AI PCs, AI smartpens (like the one being worked on by OpenAI), AI wearables, or robots. Undoubtedly, humanoid robots seem to show the most potential, especially as the technology shows promise for automating domestic chores and some work tasks that aren’t so easily automatable.

With shares of Tesla (NASDAQ:TSLA) gaining significant momentum, partially on the back of the promise of its Optimus humanoid robot, which could change the game entirely, I think it’s time to start considering the broader basket of robotics innovators that might challenge the EV titan as the physical AI race starts to gain some momentum in the next three years. 

Google looks like a massive winner as robotics looks to hit an inflection point

As impressive as Boston Dynamics’ new Atlas robot was, it’s still a ways away from commercialization. Undoubtedly, perhaps safety more than capability is a bigger concern as the humanoid robots look to be embraced by everyday consumers. Arguably, Google DeepMind is the frontier AI innovator that could help such a robot make the safe jump. Either way, the physical form and flexibility of the Atlas robot itself were incredible, but what needs to be even more incredible is the model that goes underneath the hood.

Arguably, it’s the AI model that’s been the limiting factor that’s prevented robotics from really taking off. As Google DeepMind looks to get Gemini to a spot where it can be trusted to run in a physical form factor, I do think Alphabet is poised to be at the forefront of yet another emerging market.

The big question is whether it’s Google that will have the gold standard for robotics smarts when humanoid robotics are finally ready for mass commercialization. Arguably, licensing the intelligence layer to other robotics firms could be the high-margin earnings growth engine that helps make Alphabet the most valuable company on Earth.

Nvidia is also investing heavily in physical AI

With Nvidia (NASDAQ:NVDA) also heavily investing in its own robotics platform (think the impressive world-foundation model platform Cosmos), I do think that many are not yet ready for how quickly the disruptive wave of robotics will move in.

Consumer and industrial robots still sound sci-fi, even though the latter is hard at work in various factories. But so too was an innovation like ChatGPT around five years ago. Either way, I think Jensen Huang is right in that robotics isn’t too far from its own “ChatGPT moment.” Perhaps AI will pave the way for many more such moments in the coming decade. 

At this juncture, Alphabet stock still seems like a relative bargain at just shy of 33.0 times trailing price-to-earnings (P/E), given all it stands to gain from robotics. The Google DeepMind-Boston Dynamics partnership, in particular, might yield a product that ends up dominating the industry, at least in its earlier days.