UnternehmerTUM Accelerator, Microsoft, Infineon and NVIDIA have launched Physical AI Growth Lab, an equity-free accelerator for European startups in physical AI, robotics and industrial AI. The program was unveiled on October 22, 2026 in Munich, will run from January to April 2027, and is accepting applications until November 13, 2026.
Physical AI Growth Lab in 30 seconds
- It’s a European accelerator for physical AI, robotics and industrial AI startups, backed by four partners.
- It will select 10 to 15 companies for a program running from January to April 2027, with in-person sessions in Munich.
- Each startup gets $350,000 in Azure credits, NVIDIA tools and access to Infineon hardware.
- Applications close on November 13, 2026, and the program is equity-free.
Physical AI is the kind that moves off screens to run machines, robots, factories and logistics networks, combining foundation models, simulation and robotics. The partners say Europe will hold around 22.5% of the global physical AI market in 2026, pointing to the regulatory clarity of the EU AI Act and Germany’s high-tech strategy. That figure comes from the announcement itself, which doesn’t detail its source.
Which startups can apply
The program is run by UnternehmerTUM Accelerator, the accelerator linked to the Technical University of Munich. It’s open to startups based in Europe, the Middle East and Africa, or developing products for that region, provided they meet several requirements:
- Have a working prototype or a minimum viable product.
- Have at least one technical co-founder.
- Have a team of up to 20 people.
- Have been founded within the last three years.
The format is hybrid, with in-person sessions in Munich. Selected startups will get access to mentorship from more than 170 deep tech experts, direct pitches to enterprise customers, and contact with a network of more than 200 investors. More information is on the program’s website.
What each partner brings
Microsoft is offering the benefits of Microsoft for Startups, including $350,000 in Azure credits, plus its AI and cloud infrastructure and its enterprise customer network. NVIDIA is contributing its physical AI stack and open models, covering everything from training and simulation to edge deployment, along with the perks of its Inception program for startups. Infineon is providing its power semiconductors, microcontrollers, sensors and connectivity solutions, which it describes as the electronic foundation that turns intelligence into motion.
UnternehmerTUM says startups that have gone through its accelerator have raised nearly €4 billion, citing Sereact, RobCo and Sewts as examples. Inga vom Holtz, UnternehmerTUM’s head of startups and investments, argued that Europe’s physical AI market is growing fast and that now is the time to back startups with capital, infrastructure and technology.
Agnes Heftberger, CEO of Microsoft Germany and Austria, placed Germany’s next big economic opportunity at the intersection of AI and industrial expertise. Eran Rosenberg, NVIDIA’s head of physical AI startups for EMEA, said robotics and industrial AI founders need early access to the right tools while their products are still taking shape. Allan Frederiksen, Infineon’s head of technology and innovation, said the future of robotics will be built through collaboration and that the company sees physical AI as a major growth opportunity.
Germany bets on physical AI
The announcement comes days after NVIDIA and the German government unveiled an alliance along the same lines, as cloudnews.tech reported in NVIDIA and the German Government Join Forces to Advance Physical AI. Infineon, for its part, has stepped up its push into AI data centers with deals such as its acquisition of C2i Semiconductors, and cloudnews.tech has also covered Infineon’s new factory for European AI and energy in Dresden.
Frequently asked questions
What is Physical AI Growth Lab?
It’s an equity-free accelerator from UnternehmerTUM, Microsoft, Infineon and NVIDIA for European startups in physical AI, robotics and industrial AI.
Until when can startups apply?
Applications are open until November 13, 2026. The program runs from January to April 2027.
What requirements must startups meet?
Be based in or target the EMEA market, have a prototype or minimum viable product, at least one technical co-founder, a team of up to 20 people, and less than three years since founding.
What do selected startups receive?
$350,000 in Azure credits, access to NVIDIA tools and models, Infineon hardware, mentorship, and connections with customers and investors.
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