China's Tech Giants Race Toward Embodied Intelligence

TMTPOST -- Following breakthroughs with large-scale AI models, the concept of embodied intelligence has become one of the most talked-about topics in the AI industry over the past two years.

Many experts believe that this is a critical path toward achieving Artificial General Intelligence (AGI). As a result, some of China’s largest tech companies, including Huawei, Tencent, and Meituan, have turned their attention to this promising technology.

In November, Huawei announced the official launch of its Global Embodied Intelligence Industry Innovation Center in Shenzhen, marking its entry into this cutting-edge field. The center aims to drive the development of embodied intelligence technologies at the international forefront.

This move by Huawei is a significant step as it marks the company's first major involvement in the development of embodied intelligence and humanoid robots. But Huawei is not alone in this push. Other prominent Chinese companies are also making waves in this space.

Meituan’s venture capital arm recently invested nearly 1 billion yuan in the humanoid robotics company Unitree Technology. Embodied intelligence firm Robotera recently raised 300 million yuan in a Pre-A funding round, with Alibaba and Lenovo Capital among the investors. Tencent is developing its own embodied intelligence products through its Robotics X laboratory, while SoftBank-backed YOUIBOT has partnered with Xi'an Jiaotong University to establish a research institute focused on humanoid robotics.

The rising interest from China's tech giants signals the growing importance of embodied intelligence. However, with over 70 humanoid robotics companies and hundreds of startups in the field, the question arises: Is this a bubble waiting to burst?

According to Zhang Chaohui, founder and CEO of YOUIBOT, embodied intelligence itself is not a bubble. He explains that the recent hype has been driven by advancements in large AI models and humanoid robot technologies. However, he warns against oversimplifying embodied intelligence as just humanoid robots, as this could lead to unrealistic expectations. Despite the enormous potential of embodied intelligence, he acknowledges that commercialization, especially of humanoid robots, still has a long way to go.

Zhang believes that embodied intelligence will become more efficient and adaptable, allowing robots to operate effectively in a wide range of scenarios. He argues that the technology has a solid foundation and broad prospects, making it a worthy area of investment and research.

Since its establishment seven years ago, YOUIBOT has completed approximately 10 rounds of financing, with investors including Feidong Industrial Investment, Wuxing Industrial Investment, Xicheng Jinrui, Fangguang Capital, IDG Capital, BlueRun Ventures, SIG Haina Asia, Zhenge Fund, Inno Angels, HAX (SOSV Fund), AND CMBC-Bole, among others.

YOUIBOT holds a dominant position in the vertical sub-markets of intelligent manufacturing, including semiconductors, new energy, and 3C industries. According to statistics, YOUIBOT has shipped over 3,000 mobile robots, with a 75% repurchase rate from clients. The robots have accumulated over 25 million operating hours, serving more than 500 clients, including major players in the semiconductor, new energy, and power industries, such as TSMC, Luxshare Precision, Chiplink Integration, Hive Energy, State Grid, China Energy Group, Sinopec, and CNOOC.

"We have successfully implemented multiple 'embodied intelligence' robot projects," Zhang told AsianFin. "Today, the path we should focus on is how to iterate one or two steps to better realize customer value and enhancement, thus obtaining more commercial returns."

Following the establishment of the YOUIBOT-Xi'an Jiaotong University embodied intelligence Robot Research Institute, Zhang told AsianFin that in 2023, YOUIBOT's performance grew by over 100% year-on-year, with international business increasing by more than 230%. In terms of products, the flagship product accounted for over 88% of shipments.

With the rise of generative AI models like ChatGPT, humanoid robots now have the cognitive capabilities to perform more complex tasks. As Nvidia CEO Jensen Huang remarked in 2023, embodied intelligence, the ability of AI to understand, reason, and interact with the physical world, represents the next wave of innovation.

While the excitement surrounding embodied intelligence is palpable, the commercial reality of humanoid robots has not yet matched the hype. Many robots currently being marketed as embodied intelligence products still lack the necessary efficiency and functionality to replace humans in real-world tasks.

A pharmaceutical company that purchased a China-made humanoid robot for its production line found that the robot still required significant human assistance and was much slower than human workers. Ultimately, the company abandoned the robot, marking it as ineffective for its intended tasks.

Xi Ning, a professor at the University of Hong Kong and director of the Institute for Emerging Technologies, emphasized that most humanoid robots on the market today are prototypes rather than fully developed products. He explained that these robots, while showcasing promising capabilities like movement control and basic tasks, are still far from meeting the practical needs of industries that require high efficiency and reliability.

Even though the robot market appears bustling, Liu Zhiyi, a researcher at Shanghai Jiaotong University, cautioned that many companies are still in the "demo" phase. Few are truly ready for mass commercialization, and it may take 5 to 20 years for the industry to transition to large-scale production. The steep investment required for mass production, especially in humanoid robots with dexterous hands or complex mobility, presents significant challenges for the industry.

Despite the current obstacles, embodied intelligence remains a promising frontier in AI and robotics. As Huawei's investment and the involvement of other tech giants demonstrate, the market is poised for significant innovation. However, experts agree that the road to mass adoption and commercialization will be long and fraught with technical and financial challenges. As Zhang pointed out, while competition is intensifying, the drive for innovation and improved standards will ultimately push the industry toward a brighter future.