‘From science project to scalable platform’: Cibus Capital on why Physical AI is reshaping investment

Agtech investment has shifted from a growth-at-all-costs approach to one prioritizing capital efficiency and proven commercial traction, resulting in a sector shakeout where only companies with strong unit economics and real-world integration survive. The rise of Physical AI—combining robotics, automation, and adaptive intelligence—is now delivering tangible on-farm value, driven by labor shortages and advances in AI that enable scalable, reliable automation. Key investment themes include precision agriculture through genetics, physical AI, and soil health, with a focus on solutions that align farmer profitability with sustainability. However, regulatory and capital hurdles, particularly in the UK, continue to challenge the sector’s full potential.