U.S. Tech Giants Betting Big On Humanoid Robots - But China Builds Them Better

U.S. Tech Giants Betting Big On Humanoid Robots – But China Builds Them Better

NEW YORK – American tech giants like Tesla and Nvidia are racing to develop humanoid robots, stressing their importance to the future economy. But analysts warn they are already at risk of losing out to China.

So-called humanoid robots — artificial intelligence-powered machines designed to resemble humans in appearance and movement — are expected to provide a range of use cases, such as filling industrial and service sector jobs.

Investor excitement surrounding the robots has been mounting amid increased mentions from tech leaders like Nvidia’s Jensen Huang, who ushered in “the age of generalist robotics” earlier this month when announcing a new portfolio of technologies for humanoid robot development.

In the manufacturing of the robots themselves, Tesla’s humanoid robot project, Optimus, appears to be leading in the U.S., with CEO Elon Musk announcing plans to produce about 5,000 units this year.

While Musk’s ambitious plans could give it a leg up on U.S. competitors like Apptronik and Boston Dynamics that are yet to hit the mass market, he will face stiff competition from a familiar source: China.

Hangzhou-based Unitree Robotics last month briefly sold two humanoid robots to consumers on the e-commerce platform JD.com, as per local media. Meanwhile, Shanghai-based robotics startup Agibot, also known as Zhiyuan Robotics, has matched Optimus’s goal to produce 5,000 robots this year, according to the South China Morning Post.

As Chinese electric vehicle companies like BYD begin outpacing Tesla’s growth and undercutting its prices, experts say a similar dynamic could play out in humanoid robotics.

“China has the potential to replicate its disruptive impact from the EV industry in the humanoid space. However, this time the disruption could extend far beyond a single industry, potentially transforming the labor force itself,” said Reyk Knuhtsen, analyst at SemiAnalysis, an independent research and analysis company specializing in semiconductors and AI.

Dancing on the competition?

In a research note in February, Morgan Stanley estimated that current building costs of humanoid robots could range from $10,000 to $300,000 per unit, given different configurations and downstream application requirements.

However, Chinese companies are already undercutting U.S. competitors in terms of price thanks to superior economies of scale and manufacturing capabilities, according to Knuhtsen.

For example, Unitree released its G1 humanoid robot for consumers in May with a starting price of $16,000. In comparison, Morgan Stanley estimates that the selling cost of Tesla’s Optimus Gen2 humanoid robot could be around $20,000, but only if the company is able to scale, shorten its research and development cycle, and use cost-effective components from China.