BlackBerry bets big on robotics with $950 million QNX software backlog as physical AI takes center stage

BlackBerry's Transformation from Phones to Physical AI

BlackBerry, once synonymous with keyboard smartphones and BBM messaging, has undergone a remarkable reinvention that's now paying dividends. The company's share price has doubled this year as investors embrace its strategic pivot toward safety-critical software1

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. BlackBerry CEO John Giamatteo told CNBC that while their products can no longer be held in the palm of your hand like the old devices, the core values of security, trust, and innovation remain central to their software and services today1

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. After the iPhone launch in 2007 transformed the smartphone industry, BlackBerry fought to keep its consumer mobile division alive but ultimately lost that battle, officially stopping smartphone design in 2016 to focus fully on software5

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QNX Software Dominates Automotive and Expands to Robotics

Two businesses now drive BlackBerry's revenue: secure communications for governments and QNX, which provides operating systems and embedded software for cars. QNX has become a strong player in automotive software and is embedded in 275 million vehicles worldwide2

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. The software underpins features ranging from braking systems to semi-autonomous driving functions, establishing BlackBerry as a leader in safety-critical systems. BlackBerry's transformation became official in the early 2010s when it began rebuilding around software, but the company has now positioned itself for future growth in physical AI, which encompasses autonomous cars and robotics5

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Robotics Emerges as Fastest-Growing QNX Segment

Robotics is now one of BlackBerry's fastest-growing businesses within the QNX portfolio, according to Giamatteo2

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. The company has accumulated a royalty backlog of orders for QNX worth $950 million, with a portion coming from robotics, though specific numbers weren't disclosed2

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. Giamatteo emphasized that robotics could be an even faster-growing segment than automotive applications, particularly for industrial settings like warehouses, robotic forklifts, and medical devices1

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. The CEO clarified that BlackBerry isn't targeting humanoid robots like those gaining attention in China, but rather focuses on industrial automation and medical instruments where safety-certified software becomes increasingly important2

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Strategic Partnership with Nvidia Accelerates Physical AI Push

In April, BlackBerry announced an expanded partnership with Nvidia to deploy QNX software alongside Nvidia's systems in robotics, medical technologies, and industrial applications3

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. This collaboration positions BlackBerry to capitalize on the convergence of specialized hardware with AI-driven software in modern robotic platforms. BlackBerry argues that QNX's long track record in automotive safety-critical systems makes it well-suited to compete in these emerging markets3

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. Giamatteo stated that robotics is going to shift in a hardcore way and expressed excitement about the opportunity ahead2

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. The company's expertise in software-defined vehicles translates directly to the requirements for autonomous vehicles, warehouse robots, surgical systems, and industrial automation where machines must respond predictably and meet rigorous safety standards4

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Why BlackBerry's Robotics Bet Matters

As more machines become connected and AI-powered, the need for encryption technology and cybersecurity grows exponentially. BlackBerry's dual focus on secure communications through its SecuSUITE platform and safety-critical embedded systems positions it uniquely for the physical AI era5

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. The company's experience with software-defined vehicles, where a software glitch can be dangerous, translates directly to robotics applications in warehouses, factories, and medical settings. Giamatteo sees these applications around robotics, medical instruments, and industrial automation as representing a tremendous growth opportunity that BlackBerry is well-positioned to address2

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. With investors rewarding the company's focus on critical software and improving margins driving profitability, BlackBerry's transformation from smartphone icon to physical AI enabler demonstrates how legacy tech companies can successfully navigate industry disruption through strategic pivots.