Tesla displays Optimus next to two of its vehicles at the World Robot Conference in Beijing on Aug. 22, 2024.
CNBC | Evelyn
BEIJING — While Chinese companies last week showed off humanlike robots playing the zither or grabbing sodas, Tesla displayed its Optimus humanoid inside a clear box, motionless next to its cars.
Elon Musk has claimed Optimus can fold laundry, and one day cook, clean or teach children — tech he touts can give Tesla a value of $25 trillion. Musk says Tesla plans to test out the humanoids in its factories next year. It’s unclear how well they can perform right now.
Meanwhile, the World Robot Conference that began Wednesday in Beijing claimed 27 humanoids debuted at the event, a record. Similar to the country’s rush into electric cars a few years ago, money and resources are now flowing into the development of humanlike robots.
Total investment into China’s robotics industry in the last decade has exceeded 100 billion yuan ($14.01 billion), said Wei Cao, partner at Lanchi Ventures. He said the firm has around 15 billion to 20 billion yuan in assets under management.
Cao told CNBC he expects the next milestone for humanoid development will occur in the next year or two: a commercially viable use case in manufacturing in which the robots can move around and know how to prioritize a series of tasks.
That’s more sophisticated than repeating a single task, such as grabbing a water bottle, which the robots can already do, Cao pointed out. He noted how artificial intelligence, including such as models from OpenAI and Alibaba, has significantly improved how successful robots can be at processing information for performing tasks.
Lanchi Ventures is an investor in Shanghai-based Agibot, a humanoid startup founded in February 2023 by a one-time Huawei recruit. A few days before the World Robot Conference, the startup revealed five new robots, some available for preorder with a 5,000 yuan deposit.
Agibot aims to begin some deliveries in mid-October, followed by a batch of 300 robots starting in November. Its advertisement for the available humanlike robots showed they could act as sales people, gallery guides or pickers of factory parts. Some were on display at the conference.
Also in attendance was Stardust Intelligence’s Astribot S1 humanlike robot, which in late April had appeared in a promotional video folding a shirt and pouring wine. A few of the robots on display at the conference performed intricate Chinese martial arts moves, played the zither and wrote Chinese brush calligraphy.
Shenzhen-based Stardust was founded in December 2022 by a former member of Tencent and Baidu’s robotics projects. The startup says it uses artificial intelligence to support the robots’ imitation learning, where the machines can replicate actions after watching them.
Other humanlike robots, from lesser-known companies Galbot and Turui, put products into baskets or brought individual soda cans from a shelf to another table.
Some of the actions were stiff and slow. It’s not always clear whether the actions are being remotely controlled, or done autonomously. Demos don’t reveal everything about a product’s capabilities.
Compared to last year, the number and kinds of demos at the World Robot Conference increased significantly, Lanchi’s Cao said, noting that many students and young people also attended.
In his assessment, robot tech from Tesla and other U.S. companies are likely one to two years ahead of that in China. But Cao pointed out that China has self-sufficiency in more than 95% of the humanoid supply chain.
As for why Tesla didn’t showcase Optimus in action at the conference, Cao said the promo videos already show it has high capabilities and he understands if the company did not want to invest resources in having an engineer to operate demos.
Tesla did not immediately respond to a request for comment.
Jeff Burnstein, president of the U.S. Association for Advancing Automation (A3), spoke at the conference via a recorded video and showed some virtual demonstrations of humanoid startups such as Agility.
“These are demos, but they as well as others are now in pilot programs, and some companies we believe actually started using them more than just a pilot,” he said, noting the association is having its own humanoid conference in Tennessee on Oct. 7.
Specialized focus
Instead of replicating the entirety of a human being all at once, humanoid companies have tended to focus on specific parts before moving to others.
One of Shenzhen-based Limx Dynamics’ products released this year is the P1, a robot for research purposes that can balance on two legs. It can walk up and down stairs, and regain balance when shoved.
Limx Dynamics was founded more than two years ago. Its recent backers include Alibaba, according to PitchBook. The startup earlier this month announced its humanoid could move objects in a warehouse and autonomously replan how to complete a task if the target is moved.
Other companies at the World Robot Conference showed off an array of gears, robot hands and other parts.
Around the year 2030, a single robot will likely be able to perform simple household tasks, nursing care and medical treatment, partly on its own and partly in cooperation with humans, Shigeki Sugano, president of the Robotics Society of Japan, said Thursday during the conference forum.
That includes the ability to express emotions, he said. He doesn’t expect fully autonomous humanoids until after 2050.
Among the development challenges, he said that if a humanoid robot is to support humans fully, then it will need to address the current problem of not having enough power.
A humanoid’s battery may only last for two hours before needing to be recharged.
An Amazon worker moves boxes on Amazon Prime Day in the East Village of New York City, July 11, 2023.
Spencer Platt | Getty Images
Amazon is extending its Prime Day discount bonanza, announcing that the annual sale will run four days this year.
The 96-hour event will start at 12:01 a.m. PT on July 8, and continue through July 11, Amazon said in a release.
For the first time, the company will roll out themed “deal drops” that change daily and are available “while supplies last.” Amazon has in recent years toyed with adding more limited-run and invite-only deals during Prime Day events to create a feeling of urgency or scarcity.
Amazon launched Prime Day in 2015 as a way to secure new members for its $139-a-year loyalty program, and to promote its own products and services while providing a sales boost in the middle of the year. In 2019, the company made Prime Day a 48-hour event, and it’s since added a second Prime Day-like event in the fall.
Prime Day is also a significant revenue driver for other retailers, which often host competing discount events.
Illustration of the SK Hynix company logo seen displayed on a smartphone screen.
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Shares in South Korea’s SK Hynix extended gains to hit a more than 2-decade high on Tuesday, following reports over the weekend that SK Group plans to build the country’s largest AI data center.
SK Hynix shares, which have surged almost 50% so far this year on the back of an AI boom, were up nearly 3%, following gains on Monday.
The company’s parent, SK Group, plans to build the AI data center in partnership with Amazon Web Services in Ulsan, according to domestic media. SK Telecom and SK Broadband are reportedly leading the initiative, with support from other affiliates, including SK Hynix.
SK Hynix is a leading supplier of dynamic random access memory or DRAM — a type of semiconductor memory found in PCs, workstations and servers that is used to store data and program code.
The company’s DRAM rival, Samsung, was also trading up 4% on Tuesday. However, it’s growth has fallen behind that of SK Hynix.
On Friday, Samsung Electronics’ market cap reportedly slid to a 9-year low of 345.1 trillion won ($252 billion) as the chipmaker struggles to capitalize on AI-led demand.
SK Hynix, on the other hand, has become a leader in high bandwidth memory — a type of DRAM used in artificial intelligence servers — supplying to clients such as AI behemoth Nvidia.
A report from Counterpoint Research in April said that SK Hynix had captured 70% of the HBM market by revenue share in the first quarter.
This HBM strength helped it overtake Samsung in the overall DRAM market for the first time ever, with a 36% global market share as compared to Samsung’s 34%.
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.