Chinese Robotics Firms Pivot to Embodied AI Development

Chinese robotics companies are transitioning their primary focus from hardware capabilities to the development of embodied AI. This software allows humanoid robots to understand their surroundings and learn unfamiliar tasks without explicit programming. The shift has sparked a massive investment boom, with Chinese firms raising 93.5 billion yuan ($13 billion) across 322 deals during the first half of 2026.

Spirit AI and other developers are deploying robots in pharmacies and factories, including CATL plants, to gather real-world data. To accelerate training, Spirit AI hired 1,000 people to record human activities, while Robbyant, the robotics unit of Ant Group, utilized 160,000 hours of material for its pharmacy deployments. Other firms, such as Unitree Robotics, are testing OpenAI models to achieve a breakthrough in robotic intelligence.

This development has intensified the tech rivalry between China and the United States, as Chinese firms compete with American startups like Physical Intelligence and Skild AI. However, Chinese developers face significant obstacles due to US export controls on advanced Nvidia chips. To counter these shortages, companies are turning to synthetic data, more efficient AI models, and domestic hardware alternatives provided by Huawei.