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

The National Science Foundation Directorate for Technology, Innovation and Partnerships is soliciting written proposals for the X-Labs Initiative focusing on AI for Physical Systems. This initiative seeks innovative, early-stage platform technologies at Technology Readiness Levels 2 through 4 that enable intelligent, adaptive, and scalable AI systems to interface with the physical world. Key areas of interest include robotics, embodied systems, human-robot interfaces, advanced sensing, and cyber-physical systems, with a specific emphasis on use-inspired breakthroughs such as distributed learning, edge AI, and simulation-to-reality systems. Proposals must focus on reusable platform technologies rather than single products and require hardware or wetware-in-the-loop validation. Awards will be issued as milestone-based Other Transaction contracts under 42 U.S.C. 19116, rather than FAR-based procurements. The program follows a phased structure, beginning with Phase 0, which lasts 9 to 12 months with funding up to 1.5 million dollars. Successful teams may proceed to Phase 1, lasting 24 to 36 months with potential funding up to 50 million dollars per year, and may be eligible for subsequent phases. The selection process is a two-step competitive evaluation consisting of a written proposal and an oral presentation, with a primary focus on team qualifications, mission clarity, and alignment with strategic objectives. Lead organizations must be registered in the System for Award Management and provide a Unique Entity Identifier. All proposals must include a Conflict of Interest Statement and adhere to strict research security and eligibility requirements, specifically prohibiting participation from foreign entities of concern or proscribed parties. Written proposals, limited to 8 pages, are due by January 7, 2027. Performance must take place within the United States, and any work involving human or animal interaction must comply with IRB or IACUC oversight.