Morgan Stanley estimates the market potential for humanoid robotics could be worth $5 trillion by 2050, with a potential 1 billion humanoid robots worldwide by that year. Nvidia appears to be the clear winner between Nvidia and Tesla in this space. Nvidia CEO Jensen Huang said that "every industrial company will become a robotics company," and management believes its physical AI opportunity could be its next big tech opportunity. Nvidia developed Isaac GR00T, a universal, open-source AI foundation model for humanoid robots, and debuted its Halos full-stack safety system for robots in June. Its Jetson Thor supercomputer is used by leading robotics companies, including Boston Dynamics and Amazon Robotics, for AI inference training and robotic simulation. Huang said on the Y Combinator podcast in July that Nvidia's physical AI revenue has reached an annual run rate of $10 billion, adding that in less than 10 years, "this will be our next $100 billion business." Nvidia currently has $48.5 billion in free cash flow at the end of its first quarter.