From Black Box to Glass Box: AV 3.0, Physical AI, and the Future of Long-Haul Trucking 

From Black Box to Glass Box: AV 3.0, Physical AI, and the Future of Long-Haul Trucking 

In 2025, Torc introduced AV 3.0, our framework for building autonomous software that is safe, scalable, and designed specifically for long-haul trucking autonomy. It powers TorcDrive, the physical Al virtual driver software that perceives, reasons, and navigates the real world in real-time.

We’ve had a lot of questions about our AV 3.0, evolution and how it differs from, and surpasses, the autonomous software industry as a whole. Here’s a breakdown of all the predecessors to our AV 3.0, what makes TorcDrive different and distinctive, and why we believe it sets the benchmark for state-of-the-art ADS systems.

Rules-Based Approaches and AV 1.0: Open Books and the First Learned Models

It all began with rules-based, open book software. In 2007, the Torc team VictorTango drove Odin, a 2005 Ford Escape hybrid designed to navigate complex urban environments without human intervention. The system successfully drove through roundabouts, intersections, and cross-traffic using a rule-based architecture, where the vehicle behavior was governed by pre-programmed, deterministic logic (if-then statements). Such early systems were highly interpretable and traceable. Each decision could be linked back to a specific rule, sensor input, or subsystem. This made it possible to diagnose failures with precision. In the mid-2010s, the emergence of deep learning enabled the initial move to AI with a massive improvement in perception performance, allowing vehicles to better detect objects, understand lane structure, and interpret complex scenes. This is what we refer to as AV 1.0, a hybrid approach combining learned perception models with rule-based prediction and planning. These architectures operated on inputs from cameras, lidar, radar, high-definition maps, and hand-coded rules of the road. However, these systems were inherently brittle, since downstream behavior prediction and planning components remained largely hand-engineered. It’s nearly impossible to imagine every scenario in advance and code appropriate rules to handle it. As a result, this architecture, combining first-generation learned perception models with rules-based prediction and planning, were not capable enough for the complexity of fully autonomous driving. Operating with distinct rules in silos, AV 1.0 vehicles were often stymied by simple situations that a human would negotiate without a second thought, like a misplaced construction cone or worn-away lane markings. AV 1.0 was far from being a scalable commercial product that could replace drivers.
Fear of a Machine You've Never Met

Most Americans are anxious about how quickly AI is advancing. That anxiety is especially pronounced with physical AI—machines that use sensors to perceive, reason, and move around in the real world in real time—like TorcDrive. But few Americans have directly interacted with any Physical AI systems.

According to polling, 87% of Americans have never ridden in an autonomous vehicle, or even know someone who has.

Not All Autonomy Is the Same

Much of society is limited to forming opinions based heavily on eye-catching headlines hyped by algorithms eager for clicks and eyeballs. All of us benefit from learning about the fundamental differences between the powerful physical AI quietly driving autonomous freight trucks and the AV systems in private vehicles and robotaxis making the evening news.

AV 2.0: A Magic Black Box

In the last five years, we’ve seen a massive leap in vehicle capabilities with AV 2.0 end-to-end learned platforms. This is one of the leading directions in AV research, moving beyond heavily rule-based planning and map-dependent architectures toward unified learned systems. Instead of relying on hand-designed rules for each part of the driving stack, AV 2.0 driving solutions leverage advances in deep learning, generative modeling, and large-scale data to train models that can run in-vehicle and connect perception, prediction, planning, and control within a single learned framework. Like the large language models we increasingly use every day, these systems are capable of impressive results. But that capability comes with a major tradeoff: opacity. In a highly integrated end-to-end model, it can be difficult to determine why the vehicle behaved a certain way, where an error originated, or how to make a targeted correction without affecting other parts of the system. A change intended to improve behavior in one scenario can introduce regressions elsewhere, requiring large-scale retraining, validation, and testing. This makes development more expensive, slows iteration, and creates uncertainty around how behavior may shift from one model update to the next. For long-haul trucking, the challenge is even greater. Safe physical AI for heavy trucks requires more than what is sufficient for robotaxis or passenger vehicles. Trucks operate with longer stopping distances, reduced maneuverability, different visibility constraints, and a need for long-range perception, prediction, and planning. The next generation of autonomous trucking must combine the deterministic confidence and traceability of rule-based autonomy, the modular structure and debuggability of AV 1.0, and the performance gains of the end-to-end approach in AV 2.0.

AV 3.0: The Transparent Glass Box

The next generation of autonomy should not force a choice between the traceability of rules-based systems and the performance of modern end-to-end AI. Torc’s approach combines modular approaches, deterministic guardrails, and end-to-end training into what we call AV 3.0: a transparent architecture for autonomous trucking. Rather than a black box approach to autonomy, AV 3.0 is designed as a “glass box”, a system whose major components can be inspected, validated, and improved with precision. This approach is structured to provide visibility into how the truck perceives the world, predicts the behavior of other road users, and selects a safe driving plan. To develop AV 3.0, Torc has the high-powered simulation and data loop needed to train, test, and validate TorcDrive before we deploy it on public roads. The result is a scalable autonomous trucking software product designed for the complexity, safety requirements, and operating realities of long-haul freight.
A graphic describing the three parts of Torc's AV 3.0

1. A Verifiable AI stack

TorcDrive automated driving software is organized around three core functional modules: Perception, Prediction, and Planning. Together, these modules allow the system to understand the driving environment, anticipate how surrounding actors may behave, and generate safe driving plans for the truck. This forms a modular learned software stack that is learned in an end-to-end manner, and is supported by deterministic, rule-based guardrails and clearly defined safety criteria. This modular structure makes the system more inspectable, testable, and verifiable than a single black-box end-to-end model. Engineers can examine intermediate outputs from each stage of the stack and validate whether the different components are responding appropriately to the input. When changes need to be made, Torc can target specific elements of the stack, validate at the module-level output, and then test the full system in closed-loop conditions before deployment. Equally important as the modular structure of the AI stack is how TorcDrive is trained and validated.

2. Immersive AI Training and Validation

Before it reaches the road, TorcDrive is trained and tested through a large-scale data and simulation loop designed to expose the system to the complexity of real-world trucking. This can be seen as the autonomous trucking equivalent of a CDL driver-education program, except the system is specifically tested in rare, complex, and safety-critical scenarios at a scale no human driver could encounter in a lifetime. Torc accomplishes this using our proprietary generative simulator trained on real-world data captured by production-intent sensor suites on over-the-road trucks. Torc’s generative AI and data-loop environment creates a large and continually expanding set of challenging driving scenarios grounded in real-world data and physics-based modeling. These scenes include cars, trucks, pedestrians, animals, varied road geometries, changing conditions, and rare edge cases that are difficult to collect repeatedly through road testing alone. Our immersive training environment accelerates TorcDrive’s ability to learn new routes and autonomous hub layouts, allows it to quickly adapt to regional driving conditions, and prepare for challenging scenarios such as severe weather, unexpected pedestrian encounters, or rare vehicle behaviors. Simulation does not replace real-world validation, but it greatly expands the range of situations TorcDrive can experience before deployment.

3. Seamless Hardware Integration

In 2019 Torc Robotics became an independent subsidiary of Daimler Truck NA, the world’s largest and leading OEM, bringing together extensive experience in freight industry manufacturing and relationships with Torc’s experience in developing autonomous vehicle solutions. This is the first strategic alliance between an autonomous vehicle technology firm and a truck original equipment manufacturer (OEM), gathering all of the essentials needed to create a scalable Class 8 SAE Level 4 truck. Together, Torc and Daimler Truck have developed a truck purpose-built for fully self-driving autonomous operation in long-haul trucking and production at scale. It combines a Verifiable AI stack hosted on a proprietary NVIDIA-powered embedded compute platform provided by Flex, with sensors, other hardware, and Daimler’s autonomous-ready 5.0 Freightliner Cascadia. This chassis is specifically designed for SAE Level 4 autonomous operation, with all the essential compute stack components and sensors installed on the production line. Complete with necessary redundancies for safety-critical components, the vehicle and platform have been proven and validated for highway operations. This is the first autonomous freight vehicle to fully transition to a production-ready, purpose-built platform—the autonomy validated from the wheels up from the beginning, not bolted-on after the fact.

Riding Along as the Future Unfolds

Over the coming weeks, we’ll be sharing more detailed pieces of our product and how it has been developed on the Al-powered technology wave. What’s down the road? Connect with us to see what’s next.

Digital AI vs. Physical AI: What’s the Difference and Why It Matters

Digital AI vs. Physical AI: What’s the Difference and Why It Matters

Have you used AI to streamline your work or generate a list for you? Have you been fooled by an AI image? The technology we’ve been watching in movies for 20 years is now in our homes, cars, phones, and schools. Artificial intelligence is no longer theoretical. Most people—across industries and age groups—interact with tools like ChatGPT, Claude, or Gemini. Work apps like Zoom now offer AI summaries, and Microsoft and Adobe have generative AI tools built into their products. This widespread exposure has created a shared baseline: AI is useful, real, and improving quickly.

But there’s a critical distinction that’s still not widely understood—digital AI vs. physical AI.

Digital AI:

Intelligence On-screen

Digital AI operates in a purely virtual environment. It processes text, images, and data to:
• Answer questions
• Generate content
• Analyze patterns
• Support decision-making

Its rapid rise wasn’t accidental. Digital AI benefited from a massive, ready-made dataset: human language and images. For decades, we’ve been writing, storing, and digitizing information—emails, documents, books, photos, websites. It’s been trained on the Internet: the largest repository of language and visuals in human history.

Once that data became accessible, AI systems could be trained quickly and at scale.

That’s why digital AI feels like it “appeared overnight.” It was trained “in the cloud” of ever-expanding data centers, allowing for rapid iteration.  

Physical AI:

Intelligence in the Real World

Physical AI takes the same foundational technologies as digital, on-screen AI—machine learning and neural networks—and applies them to real-world interactions.

Instead of predicting the next word, physical AI must decide:
• What object am I seeing?
• How do I move around safely?
• How hard should I grip this item?
• What action should I take next?

This introduces massive complexity. Instead of just structured data, physical AI must work within the real, unstructured environment, around people and things that don’t always follow the rules. The real world isn’t just data—it’s dynamic, unpredictable, and only governed by physics.

Physical AI needs to account for the 3D space of dimensions, with sensors, actuators, and an understanding of interactions and their outcomes.

Why Physical AI Is Slower to Scale (for Now)

When we built digital AI systems, we chose the right dataset by only using some parts of the internet. Chatbots were built using mostly social media data; Coding Agents were built using mostly open source code data.

Physical AI also requires special data for real world use cases. The world is extremely complex, and the sensors that “see” it can also be complex. But, this time, we can’t just look on the Internet to “find” it. The sensors we use, the environments in which robots move, and the special situations we have to prepare for have simply not been recorded.

Unlike digital AI, physical AI lacks a rich historical dataset like the Internet. There’s no ready made data set for how humans move through environments, how objects behave under force, or how tasks are physically completed. All the physical data must be created, not just collected.

The same generative tools that you use in digital AI can be applied within a simulated world, using real-world, grounded physics, and the physical AI hardware (robots and sensors) can be built alongside the AI. We don’t always have to wait for a robot to go out into the world, record the data, and bring it back to us – the robot isn’t ready yet! Companies like NVIDIA, Tesla, and Amazon are accelerating this by combining compute power, simulation, and real-world data collection.

At Torc, our autonomous driving system, TorcDrive, is being trained to work in the real world using both real-world data (recorded camera and lidar images of on-road driving) as well as complex simulated images created from those same on-road recordings, simultaneously.

The Key Insight: Same Brain, Different Body

The most important takeaway is this: digital AI and physical AI are built on the same core technology. Digital AI is proving what’s possible and adaptable by humans, and most importantly, helpful. Physical AI extends that capability into the real world. Everything you’ve seen AI do on a screen—learning, adapting, improving—will eventually happen in the physical world.

What This Means for the Freight Industry

For freight, logistics, and operations, digital AI helps companies and people think better … physical AI can help you perform better.

At Torc, physical AI is manifested in our autonomous driving software, TorcDrive, and powered by AV 3.0, on our trucks today, after being trained by millions of hours of real world and simulated scenarios. It’s the realization of the promises of hundreds of years of technology and human invention. We are still in early days of building physical AI but the trajectory is clear. Digital AI and physical AI aren’t separate revolutions. They are one and the same.

Meet Your First Physical AI

A physical AI machine you might be familiar with is the in-house robot vacuum. The simplest vacuum has the most basic sensors to register the world around it. If it bumps into something, the computer registers the bump against the moveable panel and turns the wheels to rotate itself in a different direction. Other more expensive models can use sensors to determine floor material, and then adjust how they clean accordingly.

More Going On Under the Hood

There are robot vacuum models with self-emptying functions, pet sensors, and even self-cleaning controls. One of the newest models introduced at CES 2025 even has a robotic arm to pick up socks. As we transition to a more physical AI world, how physical AI “understands” and interacts with its surroundings is very different “under the hood” (or dust bin, in this analogy). It’s becoming more complex, and smarter, and importantly, more applicable and helpful.

Not All Physical AI Thinks the Same

How different physical AI instances and machines “think” and how they must act on their sensors vary widely. It is critical to keep in mind that systems are running ever-increasing AI models, trained on real world and simulation data, designed to interact with the physical world in more capable ways, far exceeding the scalability (and capability) of the first physical AI technologies.

Freight Industry Physical AI Key Applications and Workflows
  • Autonomous Warehouse Operations
  • Intelligent Fleet Management & Safety
  • Dynamic Load Optimization
  • Automated Material Handling
  • And of course … Autonomous Vehicles
AV3.O
Scaling Physical AI for Autonomous Trucking Today: Torc’s First-to-Production Embedded Hardware

Scaling Physical AI for Autonomous Trucking Today: Torc’s First-to-Production Embedded Hardware

Flex Jupiter unit for Torc

In the first article about Torc’s AV 3.0 technology, we covered the different system components of AV 3.0: the virtual driver software, and the advanced data loop and generative AI simulation infrastructure to train and test it. AV 3.0 is the robust technology needed to safely and efficiently create an autonomous trucking product.

However, AV 3.0 is more than just world class autonomous software. We’re running this physical AI product on high-volume embedded compute in production-ready vehicles today.

We’re the first in the industry to deploy our system on a production-intent platform — Daimler Truck’s autonomous-ready Freightliner Cascadia. By running our AV 3.0 system on this autonomy-specific redundant chassis, Torc is setting the industry standard in the autonomous trucking space and leading the way to commercially scalable and viable freight solutions.

A graphic describing the three parts of Torc's AV 3.0

The Embedded Hardware Engine of AV 3.0

Freight movement presents unique challenges that require unique trucking solutions. Systems like long range perception, long-distance-actor prediction, and extended behavior planning are non-negotiable. Add in that the physical compute platform needs to hold up to running millions of miles in harsh long-haul trucking environments.

We worked with Flex to optimize the performance, cost, power, and reliability of our embedded compute platform to meet the stringent requirements needed for running Torc’s AV 3.0 virtual driver. This is no commercial server rack setup packed full of GPUs in the cab.

 It’s optimized to drive the future of autonomous freight and nothing else.

Our multi-chip adaptable architecture leverages:

  • Flex’s Jupiter platform
  • NVIDIA DRIVE AGX
  • NVIDIA DRIVE Orin system-on-a-chip
  • NVIDIA DriveOS operating system

Rishi Dhall, Vice President of Automotive at NVIDIA (when the partnership was announced in March 2025 ) said, “NVIDIA DRIVE AGX has been industry-proven in full production for automotive real-time applications at the edge. It delivers the high compute performance, low latency, and multi-sensor connectivity needed for Torc’s sophisticated autonomous trucking software, delivering robust perception, prediction, and planning for safe and reliable operation. Torc is on a clear path to scalable production for its commercial launch in 2027.”

Mike Thoeny, President of automotive at Flex, was also quoted at the time: “Our collaboration with Torc, Daimler Truck, and NVIDIA illustrates how Flex partners across the full ecosystem to enable mobility companies to launch next-generation technology with greater resilience and speed. We appreciate the trust Torc and Daimler Truck have placed in Flex through leveraging our Jupiter compute platform and advanced manufacturing capabilities to deliver autonomous long-haul trucking at scale.”

Torc’s work to achieve AV 3.0 has been intense, and the timeframe impossibly short, but this necessary step was anticipated years ago and well executed by the hundreds of dedicated Torc’rs that made it possible. Torc has staked our claim amongst the competition as the first autonomous freight company to fully shift to a production embedded platform.

FLEX unit
MarsII unit by Flex for Level 2
Advanced Driver-Assistance System (ADAS) Applications.
Image courtesy of Flex.
Jupiter-T unit for Torc. Image courtesy of Flex

Jupiter-T unit for Torc. Level 4 ADAS. Image courtesy of Flex

“The incredibly intensive, time-consuming, and technically challenging effort that it took to take the virtual driver software that runs on ‘unlimited’ datacenter server racks and make it work on the highly reliable Flex embedded compute platform, all while not sacrificing performance, is a technological marvel.”

– Stephan Vargas, Torc Technology Vice President (Compute Foundation)

Pieces of the Whole

In 2019, Torc made history by partnering with Daimler Truck, creating the first OEM relationship in the business. Torc’s leaders knew this partnership was the only path to delivering a safe and scalable product on time. Both companies knew the Cascadia Freightliner would be the top choice to house the industry’s best-in-class autonomous truck – and it’s all been realized.

Follow along as we map out what happened over the last year and why it’s important now.

October 2024: Torc Robotics Performs Successful Fully Autonomous Product Validation

In October 2024, the driverless production-intent truck, redundant components, AD Kit, and the first release of the production-intent virtual driver took to the road on a closed multi-lane test track. Clocking in at over five hours in highway settings, the test was conducted at full operating speeds of up to 65 mph to optimize fuel efficiency and emulate commercial timings and conditions for future long-haul routes. The test signaled a sea-change for Torc, shifting cycles from development to productization. This occasion was no demonstration. It was the proof point for years of work. The fully robotic from hub-to-surface-to-ramp-to-highway and back production intent hardware and software were successfully on the road.

March 2025: Torc Collaborates with Flex on Physical AI Platform for Autonomous Trucks, Accelerated by NVIDIA

In March 2025, we attended GTC in San Jose, where we announced our collaboration with NVIDIA and Flex.

April 2025: Daimler Truck’s Autonomous-Ready Fifth Generation Freightliner Cascadia Hits Texas Roads With Torc

To enable SAE Level 4 autonomous driving, the company has purposefully designed and built redundancy into the Freightliner Cascadia platform for safety-critical systems for safe, driverless operations. With over 1,500 engineering requirements, all translated into features, and a second set of electronically controlled systems like an integrated power network, the autonomous-ready Cascadia sets an industry standard for autonomous systems integration. – Daimler Truck press release April 2025

The autonomous-ready Freightliner Cascadia announced by Daimler Truck in April 2025 includes all essential compute stack components and sensors installed on the production line; a step that allows seamless integrate of the virtual driver software without retrofitting the platform.

Importantly, the vehicle and platform had already been proven and validated at our driverless product acceptance test in October 2024, six months prior.

 

May 2025: Torc Commercial Center Operations Commence

After 20 years in the robotics business, and six years of software research and development, Torc officially opened the company’s first commercial hub in May 2025, getting our trucks officially on the I-35 corridor. Our fleet has moved from our testing grounds in Albuquerque to focus on the Laredo to Fort Worth route, a crucial freight lane for many large freight customers. We’re already working in concert with them as we continue to look for more opportunities for the latter half of 2026.

 

August 2025: Torc Technology Center Opens

Sunny drone shot of the Torc Ann Arbor office locationThere are still technology refinements and milestones to hit for our virtual driver and AI development as well, and we’ll be doing that with our new technology center in Ann Arbor, Michigan. Situated close to closed course test tracks and surrounded by top-notch robotics university programs, we continue to onboard the Torc’rs needed to get to our market entry timeframe.

 

September 2025: AV 3.0 Technology Debuts

Sunny drone shot of the Torc Ann Arbor office locationThere are still technology refinements and milestones to hit for our virtual driver and AI development as well, and we’ll be doing that with our new technology center in Ann Arbor, Michigan. Situated close to closed course test tracks and surrounded by top-notch robotics university programs, we continue to onboard the Torc’rs needed to get to our market entry timeframe.

 

“We’ve never been focused on chasing timelines, or on demonstrations or headlines. We’ve just been focused on a safe and scalable product from the beginning and just doing what’s right for the industry and our partners.”

– Peter Vaughn Schmidt, CEO

Onward To 2027

We’re leading the wave of physical AI applications with our simulation environment, our computation and sensing hardware are defining the industry, and future customers are getting ride-alongs inside our production-intent trucks in Texas today. We’re set up to immediately scale and deliver on customer demand.

So, now what? What will we be doing until market entry?

Over the coming months, we’ll be sharing more about hub operations and the development of workflows and job creation, customer autonomous fleet onboarding transition plans, our commitment to safety and the release of our safety case, and more cutting-edge simulations and visualizations from our technology and trucks.  We have time to solve a multitude of other necessary autonomous trucking puzzles, truly making Torc the industry leader, driving the future of freight.

Follow us on our social channels to keep up to date with all our announcements and upcoming events.

“There are two kinds of autonomous trucks on the road today, at the end of 2025. There are demonstration trucks – and there are Torc trucks.”

– Andrew Culhane, Chief Commercial Officer