HII & GrayMatter Robotics: Physical AI in US Shipbuilding

Physical AI technology is poised to transform American shipbuilding as Huntington Ingalls Industries (HII), the largest shipbuilder in the US, partners with GrayMatter Robotics to integrate autonomous manufacturing capabilities into its operations. The memorandum of understanding between the two companies signals a significant shift towards advanced automation in an industry that has historically lagged behind Asian competitors in adopting robotics and artificial intelligence.

The integration of GrayMatter’s physical AI systems into HII’s manned and unmanned shipbuilding operations could bring autonomous surface preparation, coating and inspection technologies to the forefront of American naval manufacturing. These advanced systems are designed to work alongside human operators, enhancing precision and consistency across critical manufacturing processes while reducing the physical burden of repetitive tasks.

According to the International Federation of Robotics, the US has been slow to integrate robotics into its manufacturing processes compared with Asia, where the majority of the world’s largest ship manufacturing companies are based across China, South Korea and Japan. This technological gap has contributed to significant differences in production capacity and efficiency between American and Asian shipyards.

Autonomous capabilities for shipbuilding operations

HII, recognised as the largest producer of unmanned underwater vehicles for the US Navy and the world, outlined four key areas of collaboration with the Los Angeles-based robotics engineering company. The partnership will focus on autonomous shipbuilding capability development, integration of GrayMatter technologies with existing shipbuilding technology initiatives, workforce training to extend automation and the acceleration and scaling of unmanned system production.

The collaboration represents a strategic investment in advanced manufacturing technologies that could reshape how American shipyards approach complex production challenges. By combining HII’s extensive shipbuilding expertise with GrayMatter's cutting-edge robotics capabilities, the partnership aims to create a blueprint for modernising naval manufacturing infrastructure.

According to HII, the integration of GrayMatter’s physical AI into its operations could accelerate throughput, strengthen the maritime industrial base and augment the shipbuilding workforce. Eric Chewning, HII’s EVP of Maritime Systems and Corporate Strategy, says: “We are in the midst of an American shipbuilding renaissance and we are extremely excited to partner with GrayMatter Robotics to explore incorporating their state-of-the-art physical AI models into our shipbuilding operations.”

Eric adds that the company’s shipbuilding throughput was up 14% in 2025, with plans for an additional 15% increase in 2026. “By working with new partners like GrayMatter Robotics we can further augment our workforce and speed up US Navy shipbuilding production,” he says.

These productivity gains demonstrate the potential impact of integrating advanced automation technologies into traditional manufacturing environments.

AI-driven precision manufacturing

While welding automation and other AI technologies continue to advance, much of HII’s shipbuilding work remains hands-on and highly skilled. Tasks such as sandblasting, grinding and coating require strict adherence to requirements, creating opportunities for AI-driven technologies to support these critical processes by reducing repetitive work and improving consistency.

The physical demands of shipbuilding operations have traditionally required significant manual labour, with workers performing repetitive motions that can lead to fatigue and inconsistency over extended periods. Physical AI systems offer the potential to maintain consistent quality standards throughout production runs whilst allowing human workers to focus on more complex decision-making tasks.

Ariyan Kabir, GrayMatter Robotics CEO and Co-Founder, says: “GrayMatter Robotics is proud to be leading the charge to bring factory superintelligence to bolster our national security in this partnership with HII.”

Ariyan explains that the partnership aims to solve difficult problems, drive down delivery time and build essential components rapidly.

The technology performs autonomous grinding and surface preparation tasks, demonstrating how physical AI systems can handle complex manufacturing processes that previously required human expertise. These systems utilise advanced sensors and machine learning algorithms to adapt to varying surface conditions and material properties in real time.

AI-driven technologies could offer promising opportunities to accelerate delivery timelines and meet the US Navy’s growing demand, according to HII. The ability to operate continuously with consistent quality standards could significantly reduce production bottlenecks that have historically constrained American shipbuilding capacity.

Closing the global technology gap

According to McKinsey, geopolitical tensions and potential shifts in the balance of seafaring power, as well as emerging technologies that could enable new types of military vessels, may encourage the US and other countries to consider reinforcing domestic shipyards' capacities and capabilities.

The US seeks to scale its own shipbuilding operations to compete with China.

A 2025 Executive Order titled Restoring America’s Maritime Dominance noted that the US constructs less than 1% of commercial ships globally, while China produces approximately half. The order stated: “Rectifying these issues requires a comprehensive approach that includes securing consistent, predictable and durable Federal funding, making US flagged and built vessels commercially competitive in international commerce.”

The shipbuilding industry remains largely centred in Asia, with companies like China State Shipbuilding Corporation, Hyundai Heavy Industries and Hanwha Ocean dominating the global ship manufacturing industry. These established players have benefited from decades of sustained investment in automation and advanced manufacturing technologies.

Compared to other industries, the adoption of AI has been slow in manufacturing. According to McKinsey, one-third of manufacturing COOs surveyed said their companies spent less than 1% of the cost of goods sold on digital and AI. However, 93% of respondents indicated they will spend more, with almost one-third intending to spend at least 5% on digital and AI. This shift in investment priorities suggests a growing recognition of automation’s strategic importance.

In robotics integration, China leads global deployments, representing 54% in International Federation of Robotics statistics from 2024. The IFR data shows that 295,000 industrial robots were installed in China, the highest annual figure on record. By comparison, the US installations reached 34,200, leaving a significant gap between the two competing superpowers.

The IFR suggested that while numerous US-based robot system integrators implement robotic automation solutions, the US imports most of its robots from Japan and Europe, with few domestic suppliers. This reliance on foreign robotics technology highlights the need for partnerships like the HII-GrayMatter collaboration to develop domestic capabilities.

The shipbuilding industry remains largely centred in Asia, with companies like China State Shipbuilding Corporation, Hyundai Heavy Industries and Hanwha Ocean dominating the global ship manufacturing industry. These established players have benefited from decades of sustained investment in automation and advanced manufacturing technologies.

Compared to other industries, the adoption of AI has been slow in manufacturing. According to McKinsey, one-third of manufacturing COOs surveyed said their companies spent less than 1% of the cost of goods sold on digital and AI. However, 93% of respondents indicated they will spend more, with almost one-third intending to spend at least 5% on digital and AI. This shift in investment priorities suggests a growing recognition of automation’s strategic importance.

In robotics integration, China leads global deployments, representing 54% in International Federation of Robotics statistics from 2024. The IFR data shows that 295,000 industrial robots were installed in China, the highest annual figure on record. By comparison, the US installations reached 34,200, leaving a significant gap between the two competing superpowers.

The IFR suggested that while numerous US-based robot system integrators implement robotic automation solutions, the US imports most of its robots from Japan and Europe, with few domestic suppliers. This reliance on foreign robotics technology highlights the need for partnerships like the HII-GrayMatter collaboration to develop domestic capabilities.