OpenAI CEO Sam Altman is quietly backing Alfred, a stealth physical AI startup developing software for robots and autonomous vehicles. The company, run by former Tesla designer Ankit Ukil and former Meta Reality Labs engineer Dömötör Gulyas, is seeking to raise funds at a valuation of $40 million. Internal documents confirm that Alfred is also backed by prominent venture capital firms including Khosla Ventures, SV Angel, and Chapter One. Alfred represents the surge of capital flowing into physical AI, a sector focused on integrating artificial intelligence into moving machines. According to Crunchbase data, physical AI startups raised approximately $5.3 billion in venture funding in April alone. This trend aligns with broader industry moves, as major technology companies like Nvidia recently announced plans to release standard humanoid robot blueprints for researchers by late 2026. Altman, who views robotics as OpenAI's next frontier, supports the sector both through OpenAI's strategy and his private investments. Through his venture capital firm, Hydrazine Capital, Altman provided early backing to Alfred. Ukil noted that Altman believed in his vision even before the company officially existed. The startup aims to streamline the manufacturing process by offering a software platform that reduces research and development timelines. This allows engineers to bypass mundane tasks and focus on innovation, such as enhancing vehicle features similar to those seen in advanced electric vehicles from China. Based in Hawthorne, California, just across from the SpaceX factory, Alfred was founded nine months ago. Its team comprises designers and engineers from major automotive and robotics firms including Tesla, Ford, and Honda. The company is currently developing its flagship platform and is in active discussions with various automakers, defense contractors, and robotics companies, though specific partners remain undisclosed. Altman's extensive investment history includes over 170 stakes across industries ranging from social media to clean energy. While he holds no equity in OpenAI, his venture portfolio has contributed significantly to his net worth. Neither Altman nor OpenAI has commented on Alfred's activities. As the race for physical AI intensifies, startups like Alfred are positioning themselves at the intersection of automotive engineering and advanced robotics, with Altman's endorsement highlighting the strategic importance of this emerging field.