BlackBerry CEO John Giamatteo is betting the company's future on physical AI—robots and machines that interact with the real world—rather than chasing generative AI's crowded lane.
The Canada-based firm's QNX operating system already runs in over 275 million vehicles globally, handling critical functions like braking and semi-autonomous driving. Now Giamatteo is extending that safety-critical software into robotics, where reliability and liability matter as much as they do in cars.
The math is compelling. QNX's royalty backlog recently crossed $1.2 billion, up more than $250 million in two quarters. Giamatteo attributed the surge to three drivers: automakers adopting advanced computing, expanded software offerings, and demand for physical AI applications.
BlackBerry's partnership with Nvidia has accelerated the shift. Nvidia standardized QNX as the platform for its Halos Safety Stack, opening a pipeline of opportunities including automated mobile robots, autonomous forklifts, and robotic skateboards for warehouse logistics.
The stock reflects investor appetite for the pivot. BlackBerry shares have risen 142 percent in 2026, a striking reversal from years of decline. The company's market cap now stands at approximately $5.4 billion, a fraction of its 2008 peak of nearly $85 billion when it dominated smartphones.
The bet hinges on whether BlackBerry's automotive expertise translates into a sustainable moat in physical AI. Safety-critical systems in robotics command premium pricing and switching costs similar to automotive—but the competitive field is still forming, and larger players like Amazon and Tesla have deeper capital for robotics investment.
