Neofactory focuses on applying physical intelligence to manufacturing, a domain it describes as complex, physical, and fully specified. The organization sees manufacturing as a valuable training ground for models that must understand how real processes evolve, rather than simply reproduce the actions or instructions of human experts. Its approach emphasizes representing hidden physical conditions and process dynamics that sensors may not directly reveal.

Neofactory highlights manufacturing environments as instrumentable and closed-loop, allowing processes to generate objective data and actions to be tested against measurable outcomes. This supports training and evaluation against ground truth, with hard constraints that make performance accountable. The company also stresses the importance of modeling expertise: manufacturing operators continually infer unseen conditions and adapt their actions despite uncertainty and delayed feedback. In Neofactory’s view, effective systems must capture this evolving understanding, not just imitate visible behavior. Its work centers on developing manufacturing intelligence that can maintain accurate internal representations of process state, since mistakes can lead to measurable defects.