Chinese Automakers Follow Tesla's Bet That Humanoid Robots Are the Next Big Profit Machine

The hype around humanoid robots isn't new. Credit Tesla CEO Elon Musk and his Optimus robot, along with countless videos of Boston Dynamics' Atlas, for capturing the public's imagination. But beyond the buzz, there's real progress. The physical capabilities of robots keep improving, and researchers now believe that the AI techniques behind large language models can enable complex robots to learn nearly any task. These tailwinds have attracted a new wave of companies eager to profit from humanoid robots, and many of the latest entrants are Chinese automakers. Earlier this week, Xpeng's robotics unit raised more than $900 million, reaching a post-money valuation of over $6.3 billion. The round, led by IDG Capital with participation from Gaorong Ventures, Tencent, and Alibaba, was described by the company as the largest single-round private financing in China's 'embodied AI' industry—AI systems built directly into physical machines. This month, AiMOGA, the robotics unit of Chery Automobile, reportedly began preparing for an IPO, while BYD unveiled a humanoid robot called Xiao Di. Other Chinese automakers, including Changan, GAC, Li Auto, SAIC, and Seres, are also developing humanoid robots. Among them, Xpeng is the Chinese automaker that most closely tracks and follows Tesla's initiatives, according to Michael Dunne, CEO of advisory firm Dunne Insights, based in San Diego and Singapore. 'They're the most focused on autonomy and the first to commit in a big way to humanoid robots,' Dunne told TechCrunch. He noted that Xpeng founder He Xiaopeng is a tech billionaire known for agility and quick adjustments. 'He sees razor-thin profit in cars on the near horizon, while robots look much more promising.' Xiaopeng and Xpeng co-president Brian Gu are so bullish that they've invested their own funds in the robotics unit, contributing about $100 million to the recent round, according to the Wall Street Journal. Xpeng's bet centers on Iron, a humanoid robot with a realistic human form designed for commercial deployment. Chinese automakers like Xpeng bring a manufacturing edge. 'They have all the hardware to get the job done,' Dunne said. 'The question is whether they can catch Tesla on the AI side of the equation.' Of course, many other players are developing humanoid robots, including Agility Robotics, Apptronik, and Figure, all chasing the same goal: commercial deployment at scale. Hyundai-owned Boston Dynamics is also advancing. Hyundai plans to bring the Atlas humanoid robot to its Georgia factory this year and aims to deploy robots for tasks like parts sequencing by 2028. The Korean automaker has partnered with Google's AI research lab DeepMind to integrate advanced AI capabilities into next-generation Atlas robots, signaling a broader industry push toward practical, scalable robotics solutions. As 2026 unfolds, the race among automakers to dominate both the automotive and robotics sectors is intensifying, with Chinese firms leveraging their manufacturing strength to challenge Tesla's early lead.

via TechCrunch