As Silicon Valley shifts its focus from software-driven Large Language Models (LLMs) to integrating AI with the physical world, JaeKwon Son, CEO of TheMiilk, shared critical insights that Korea must seize the strategic opportunities in the emerging ‘Physical AI’ era.
On April 21st, the National AI Research Lab (NAIRL) and KAIST’s Kim Jaechul Graduate School of AI co-hosted a distinguished lecture featuring JaeKwon Son at the Seoul AI Hub. The lecture was themed “Why Silicon Valley Bets on Physical AI: Robotics, Manufacturing, and Korea’s Moment.”
Reflecting the intense interest in the next wave of AI innovation, the event drew approximately 260 attendees. While 120 KAIST students and researchers participated on-site at the Seoul AI Hub, another 140 joined online, further fueling the enthusiasm for the session.
Son, a veteran Silicon Valley correspondent and tech media founder, sharply diagnosed that the AI industry is moving beyond the constraints of traditional scaling laws into the realm of ‘Agentic AI’ and ‘World Models.’ He noted, “With the era of ‘Token Maxing’ and an explosion of AI agents, the ultimate bottleneck is shifting toward hardware, energy, and physical infrastructure.”
In particular, he highlighted robotics, autonomous driving, and space/defense tech as key investment sectors driving this paradigm shift. Son emphasized that in the impending Physical AI era, Korea’s existing strengths in semiconductors, precision manufacturing, and industrial infrastructure offer a realistic and powerful moat. He urged attendees to look beyond just foundational models and focus on the ‘extreme co-design’ of systems where AI meets the real world.
The presentation was followed by a dynamic Q&A session where KAIST students posed sharp questions. Attendees inquired about the feasibility of world models versus LLMs, the strategic position of Korean startups, and the future of hardware supply chains. Son responded generously, sharing vivid perspectives directly from the frontlines of Silicon Valley.
NAIRL plans to continue taking the lead in fostering an ecosystem where domestic researchers can create innovative business value based on cutting-edge technology, through ongoing exchanges with global-level investors and industry leaders.
