NSF X-Labs Initiative – AI for Physical Systems Topic Announcement

The National Science Foundation's Directorate for Technology, Innovation and Partnerships seeks written proposals for the NSF X-Labs Initiative focused on AI for Physical Systems, with proposals due January 7, 2027 and questions due November 16, 2026. Awards will be made as Other Transactions under 42 U.S.C. 19116, outside traditional FAR requirements.

The solicitation targets innovative, early-stage platform technologies that advance intelligent, adaptive, and scalable AI systems operating in or interfacing with the physical world, including robotics, embodied systems, human-robot interfaces, advanced sensing, and cyber-physical systems. Eligible mission areas include distributed learning and swarming technologies, adaptive behavior without connectivity, novel sensor integration algorithms, edge AI capabilities, bio-inspired robotics, mass-customizable robotic manufacturing platforms, and training data solutions for real-world variability. Out-of-scope efforts include pure computational solutions without physical integration, incremental advancements, narrow single-product technologies lacking generalized platform capabilities, simulation or digital-twin work without sim-to-real transfer plans, and fully commercialized technologies.

Performance of work is restricted to the United States. The NAICS code is 541715, Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology); PSC is AJ12. An eligible organization may submit a maximum of two written proposals as a lead organization per topic. Senior and Key Personnel are limited to one proposal per topic and must comply with research security requirements prohibiting participation by entities or individuals with connections to China, North Korea, Russia, Iran, malign foreign talent programs, and entities on U.S. government sanctions and debarment lists.

The program structure spans three phases: Phase 0 (9 months) with awards up to $1.5 million for concept development; Phase 1 (24 to 36 months) with awards up to $50 million per year for core mission execution; and Phase 2 (variable) for high-performing teams. Phase 0 begins July 2027; Phase 1 Go/No Go selection occurs in February 2028 with Phase 1 start in April 2028. Written proposals must not exceed 8 single-sided pages, 12-point font, single-spaced, formatted as PDF without cover letter. An informational webinar is scheduled October 14, 2026 at 1 p.m. Eastern.