Designing the Physical World with AI

In this episode, partners from a16z sit down with Alex Moden of Unlimited Industries and Davide Asnagi of Diode Computers to explore how AI is moving from code‑only tasks into the physical world. Both guests describe a new "compiler" that translates high‑level prompts into detailed circuit‑board schematics, effectively turning AI model outputs into manufacturable hardware. They argue that the biggest bottleneck isn’t compute power but the lack of structured data for electronics, and that AI‑driven design can compress the design‑to‑fabrication loop from months to days. The conversation also highlights how AI can generate thousands of design permutations, optimizing for total cost of ownership rather than just capex.

The discussion then shifts to construction, where Moden outlines a vision of fully automated building projects within ten years. He explains the current workflow: developers hand off an IFC (Issued for Construction) package after a year‑plus of multidisciplinary design. AI can explore tens of thousands of layout options, delivering a globally optimized IFC that balances cost, constructability, and long‑term maintenance. However, realizing this vision depends on aligning incentives across investors, contractors, and regulators, and on owning enough of the value chain to provide a seamless AI‑enabled interface. Vertical integration, therefore, becomes a strategic necessity to break the entrenched, siloed processes that have kept construction timelines long.

Finally, Asnagi dives into the hardware side, noting the persistent 80/20 automation gap where robots handle most tasks but manual labor still dominates complex component placement. Diode’s open‑source compiler infrastructure aims to close that gap by allowing software engineers to generate production‑ready PCB designs, turning code into physical artifacts without waiting for next‑gen robotics. By exposing the toolchain on GitHub, they invite the broader engineering community to iterate rapidly, accelerating the shift toward fully automated electronics manufacturing and, ultimately, a more agile supply chain for data‑center hardware in the United States.