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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.

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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.

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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Amazon to halt some of its DEI programs: Internal memo

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Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

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