Chinese automakers are following Tesla’s bet that robots are the next big profit machine | TechCrunch

Several major Chinese automotive manufacturers are heavily investing in humanoid robotics, mirroring a strategy popularized by Tesla's development of its Optimus project.

This strategic shift is fueled by rapid technological advancements in physical mechanics and artificial intelligence, particularly the adaptation of large language model techniques that enable machines to learn complex operations. Recently, Xpeng's specialized robotics subsidiary raised over $900 million in a private financing round, representing a historic milestone for China's emerging embodied AI sector. Other prominent domestic rivals, including BYD, SAIC, and Chery Automobile, are also establishing dedicated robotics projects or preparing spin-offs for public listings, largely driven by the expectation of superior profit margins in artificial intelligence compared to increasingly saturated vehicle markets.

This robotic transition is not limited to Chinese companies, as international automakers and suppliers are similarly building out their automated workforces. For instance, Hyundai is actively preparing to deploy Boston Dynamics' Atlas humanoid robots in its factories to assist with assembly and logistics, leveraging assistance from Google's AI division to refine the robots' spatial awareness. At the same time, automotive technology providers like Mobileye have acquired robotics startups to consolidate their hardware and software capabilities, while Western electric vehicle startups like Rivian explore their own independent automation projects. While these manufacturing giants possess unmatched production infrastructure, their long-term success in this new sector will rely heavily on their capacity to close the gap on software and machine learning capabilities.