The White House hosted its “first humanoid robot guest” on Wednesday, with first lady Melania Trump appearing alongside a robot from robotics upstart Figure AI.

The robot, identified as Figure 3, accompanied the first lady during the second day of the Fostering the Future Together Global Coalition Summit, a gathering focused on technology and children’s education. 

The machine greeted attendees in multiple languages and described itself as “a humanoid built in the United States of America,” according to widely circulated footage from the event.

The display represented one of, if not the, highest-profile showcases of humanoid robotics in the U.S. to date and highlights how the tech is becoming a national priority amid global tech competition. Beijing has also promoted humanoid robots at highly publicized events this year.

The first lady used the robot to promote her push for artificial intelligence in children’s education, suggesting that the robots could one day act as interactive educators at home. However, Figure AI says its third-generation humanoids are also applicable for more general purposes, including commercial and household tasks. 

The White House spotlight is likely to boost the brand of Nvidia-backed Figure AI, a lesser-known robot company compared to larger humanoid players like Tesla‘s Optimus and Boston Dynamics, though some of its team comes from those competitors, as well as tech giants like Apple.

Figure AI was founded in 2022 by Brett Adcock, a tech entrepreneur and billionaire who previously co-founded the publicly traded drone company Archer Aviation and a digital hiring marketplace Vettery. 

Powering its robots is the firm’s in-house Helix AI system, a vision-language-action model that powers its robots and enables learning through observation and verbal commands.

Amid growing investor excitement for physical AI, the firm raised more than $1 billion in its Series C funding round in September led by Parkway Venture Capital with participation from other notable investors such as Nvidia, Intel Capital, Qualcomm Ventures and Salesforce. That gave it a post-money valuation of $39 billion. 

The fundraising is expected to be put towards the firm’s aim to deploy thousands of robots in homes and logistics over the coming years — a goal that has likely been made easier by a major endorsement from the White House. 

Figure AI has already begun work with its first commercial customer in BMW, deploying its robots for tasks like handling sheet metal parts in manufacturing facilities.

It’s possible that Melania’s endorsement of Figure AI’s robots as potential educators will trigger a reexamination of an ongoing lawsuit the company found itself in last year. 

In November, Figure AI was sued by its former head of product safety, who alleged he was fired after warning executives that the company’s robots were powerful enough to fracture a human skull.

Gruendel also alleged that one robot had carved a gash into a steel refrigerator door during a malfunction. Figure AI contends that Gruendel had been fired for poor performance, and described the allegations as “falsehoods.” Figure AI countersued in January, saying Gruendel failed in his role to help the company build a safe robot.

The lawsuit drew attention to broader questions about safety standards in humanoid robotics development and remains pending. 

Interestingly, the White House event on Wednesday wasn’t the first time that a company connected to Adcock received some major shine from the Trump administration. 

Shares of the drone company he co-founded, Archer Aviation, surged in June last year after U.S. President Donald Trump signed an Executive Order directing the establishment of a program to promote the safe integration of electric air taxis in U.S. cities.

Archer is participating in the initiative and is working on projects involving aircraft demonstrations. Following the June 2025 executive order, Archer raised $850 million in a registered direct stock offering. 

He remains a shareholder, according to investment research platform Business Quant, but he has no active executive, board, or advisory position at the company. 

Microsoft said Tuesday that it’s bringing together the engineering groups for its commercial and consumer Copilot assistants, which have yet to gain broad adoption.

Jacob Andreou, a former Snap executive who works in Microsoft’s artificial intelligence unit, will become an executive vice president in charge of the consumer and commercial Copilot experience, CEO Satya Nadella wrote in a memo to employees.

Andreou will report to Nadella. Executives Ryan Roslansky, Perry Clarke and Charles Lamanna, who will also report to Nadella, will lead Microsoft 365 applications and the Copilot platform, Nadella wrote.

The Copilot moves will free up executive Mustafa Suleyman, a former co-founder of AI lab DeepMind that Google bought in 2014, to focus more on building new models.

“The next phase of this plan is to restructure our organization to enable me to focus all my energy on our Superintelligence efforts and be able to deliver world class models for Microsoft over the next 5 years,” Suleyman wrote in a memo. “These models will enable us to build enterprise tuned lineages that help improve all our products across the company.”

Since arriving at Microsoft through the Inflection deal in 2024, Suleyman has spent time working on Copilot for consumers, among other initiatives.

Microsoft’s Copilot app had 6 million daily active users in February, while OpenAI’s ChatGPT had 440 million and Google’s Gemini had 82 million, according to data from app analytics company Sensor Tower.

Sensor Tower said that so far in March, Anthropic’s Claude, which has gotten extensive media attention because of Anthropic’s standoff with the U.S. Department of Defense, has reached 9 million daily users, while Copilot still stands at 6 million.

Microsoft incorporates generative AI models from Anthropic and OpenAI. About 3% of commercial users with Office productivity software subscriptions have access to the Microsoft 365 Copilot add-on. Google is pushing Gemini to both consumers and corporations.

In November, Microsoft announced the formation of a superintelligence group under Suleyman, who said Tuesday that frontier model development has always been his main focus and passion.

He said he will “stay directly involved in much of the day-to-day operation” of the broad Microsoft AI group that includes products such as the Bing search engine.

Google controlled 90% of search engine market share in February, while Bing had about 5%, according to estimates from web analytics company StatCounter.

“We are doubling down on our superintelligence mission with the talent and compute to build models that have real product impact, in terms of evals, COGS reduction, as well as advancing the frontier when it comes to meeting enterprise needs and achieving the next set of research breakthroughs,” Nadella wrote.

The shake-up comes as pressure mounts on software companies to show a return on AI investments, as investors worry that the models could disrupt software incumbents.

The iShares Expanded Tech-Software Sector Exchange-Traded Fund is down about 19% so far this year, with Microsoft falling 17% in that period.

Microsoft is constructing models for generating source code, images and audio, and for reasoning, which produces answers that people can find more thoughtful but requires more time, Suleyman said.

At the same time, Microsoft will keep drawing on OpenAI intellectual property. In October, Microsoft said it has IP rights for OpenAI models and products through 2032.

“I’m genuinely thrilled about this change precisely because most of the future value is going to accrue to the model layer, and my job is to create highly COGS-optimized, highly efficient enterprise specific model lineages for Microsoft over the next three to five years,” Suleyman said in an interview, using the acronym for cost of goods sold. “That is singularly the objective, precisely because the model is the product, right? That is the future direction of all the IP.”

WATCH: Microsoft shifts from OpenAI exclusivity and expands its AI basket

AI robots will exceed the working population within a few decades as more firms adopt AI agents and continue to squeeze costs, a former Citi executive warned on Monday.

Rob Garlick, Citi Global Insights’ former head of innovation, technology, and future of work, told CNBC’s “Squawk Box Europe” that as leaders continue to prioritize profitability, their human workers will be left in the dust.

“We have a leadership system in the economic terms and business terms that celebrates profitability,” Garlick said in a conversation with CNBC’s Steve Sedgwick and Ben Boulos.

“When you marry profitability up with the technology progress, we have the biggest trade in history coming, which is basically that artificial intelligence will be able to do more and more, better and better, cheaper and cheaper, and that will be able to substitute for people.”

Garlick, who recently authored “AI – Anarchy or Abundance? Why the Future of Work Needs Pro-Human Leaders,” explained that his previous research at Citi showed that the number of AI robots is going to skyrocket as a result of these business decisions.

“We’re going to go over the next couple of decades to more moving robots than the working population, and then you add on agents, little agents, and it is going to explode,” he added.

AI robots ranging from humanoids to domestic cleaning robots and autonomous vehicles are forecasted to increase to 1.3 billion by 2035, according to a 2024 Citi report led by Garlick. The number of AI robots would quickly increase to over 4 billion by 2050, per the insights.

The Citi report even measured how long it would take for a robot to pay for itself through the money saved by replacing a human worker, for example, a $15,000 robot would break even in 3.8 weeks for a $41 an hour human job, or 21.6 weeks for a $7.25 human job. Meanwhile, a robot that costs $35,000 would have a payback time of 8.9 weeks for a $41 an hour human job.

“You can already buy a humanoid today, which gives you a payback period versus human workers of less than 10 weeks,” Garlick told CNBC, citing a figure from his book. “Humans can’t compete on this basis.”

Microsoft’s Work Trend Index report showed that 80% of leaders expect AI agents to be largely integrated into their AI strategy within the next 12 to 18 months. AI agents are a type of software program that can make decisions and complete tasks without much human direction.

Meanwhile, McKinsey & Company’s global managing partner, Bob Sternfels, noted that the company currently employs 20,000 agents alongside 40,000 humans, in an interview with Harvard Business Review. A year prior, the company only had 3,000 agents, and Sternfels predicts that in 18 months from now, there will be an equal number of employees and agents.

Tesla CEO Elon Musk also shared similar views at the World Economic Forum’s flagship conference in Davos last month, saying that AI will likely surpass human intelligence by the end of this year.

“My prediction is, in the benign scenario of the future, that we will actually make so many robots in AI that they will actually saturate all human… there will be such an abundance of goods and services because my prediction is that there’ll be more robots than people,” Musk said.

Fears around AI replacing workers have mounted in the past year as major firms, including Amazon, Salesforce, Accenture, Heineken, and Lufthansa, have cited the technology as part of the reason for eliminating thousands of roles.

Kristalina Georgieva, managing director at the International Monetary Fund, told CNBC in January that AI is “hitting the labor market like a tsunami” and warned that “most countries and most businesses are not prepared for it.”

In the U.S., AI played a role in almost 55,000 layoffs in the U.S. in 2025, according to December data from consulting firm Challenger, Gray & Christmas.

However, some leaders are striking a more positive tone. Nvidia’s CEO Jensen Huang predicts that the “AI boom” will create six-figure salaries for the workers building AI and chip factories. Huang said the technology will boost skilled trade work, such as for plumbers, electricians, construction, and steel workers.