Generative AI transformed how machines understand and generate information. The next challenge is enabling AI to understand, reason and act in the physical world. In conversation with Financial Times San Francisco Correspondent Rafe Uddin, Wayve VP of AI Vijay Badrinarayanan explores why Physical AI is emerging as the industry's next frontier, how advances in world models and end-to-end learning are making it possible, and why Wayve chose to pursue this approach long before it entered the mainstream.