Nature evolves creatures with a high complexity of morphological and behavioral intelligence, meanwhile computational methods lag in approaching that diversity and efficacy. Co-optimization of artificial creatures' morphology and control in silico shows promise for applications in physical soft robotics and virtual character creation; such approaches, however, require developing new learning algorithms that can reason about function atop pure structure. In this paper, we present DiffuseBot, a physics-augmented diffusion model that generates soft robot morphologies capable of excelling in a wide spectrum of tasks. DiffuseBot bridges the gap between virtually generated content and physical utility by (i) augmenting the diffusion process with a physical dynamical simulation which provides a certificate of performance, and (ii) introducing a co-design procedure that jointly optimizes physical design and control by leveraging information about physical sensitivities from differentiable simulation. We showcase a range of simulated and fabricated robots along with their capabilities. Check our website at https://diffusebot.github.io/
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