U.S. tech giants are betting big on humanoid robots — but China’s already ahead, analysts say
Unitree’s G1 robot at the Mobile World Congress 2025 in Barcelona, Spain, on March 6, 2025.
Nurphoto | Nurphoto | Getty Images
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.
Jensen Huang, co-founder and chief executive officer of Nvidia, speaks about humanoids during the 2025 CES event in Las Vegas on Jan. 6, 2025.
Bridget Bennett | Bloomberg | Getty Images
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.
Unitree made a major splash in the robot’s space in January when 16 of its highest-performing H1 humanoid robots joined a group of human dancers to celebrate the Lunar New Year in a demonstration broadcast on national television.
But there are signs that China’s progress in robots go much further. Morgan Stanley’s February research note found that the country has led the world in patent filings mentioning “humanoid” over the past five years, with 5,688 patents compared with 1,483 from the United States.
Large players such as Xiaomi and EV makers, such as BYD, Chery, and Xpeng, are also involved in the humanoid robot space.
“Our research suggests China continues to show the most impressive progress in humanoid robotics where startups are benefitting from established supply chains, local adoption opportunities, and strong degrees of national government support,” the note said.
Beijing has increasingly backed the space, with government departments promoting their development. In 2023, the Ministry of Industry and Information Technology issued guidelines for the space, calling for “production at scale” by 2025.
According to Ming Hsun Lee, head of Greater China automotive and industrials research at BofA Global Research, China sees humanoid robots as an important industry because of their potential to mitigate looming labor shortages.
“I think in the short-term, three to four years, we will see humanoid robots initially applied in production lines to compare some workers, and in the midterm, we will see them gradually spread into the service industry,” he said.
Musk predicted that he’d have over 1,000, or a few thousand, Optimus robots working at Tesla in 2025. According to Chinese state media, EV makers like BYD and Geely have already deployed some of Unitree’s humanoid robots at their factories.
Lee said that increased adoption will coincide with a “very fast” decline in component costs, also noting that China owns around 70% of the supply chain for these components.
According to a report by SemiAnalysis earlier this month, the Unitree G1 — “the only viable humanoid robot on the market” — is entirely decoupled from American components.
The report warns that China is the only country positioned to reap the economic awards of intelligent robotics systems, including humanoid robots, which “poses an existential threat to the US as it is outcompeted in all capacities.”
“To catch up, U.S. players must rapidly mobilize a strong manufacturing and industrial base, whether domestically or through allied nations … For Tesla and similar firms, it may be wise to begin reshoring or ‘friendshoring’ their component sourcing and manufacturing to reduce reliance on China,” said SemiAnalysis’ Knuhtsen.
Bank of America analysts predicted in a research note this month that the deployment of humanoid robots will accelerate rapidly, aided by the development of AI, with global annual sales reaching 1 million units by 2030 and 3 billion humanoid robots in operation by 2060.
Technology
Cognition to buy AI startup Windsurf days after Google poached CEO in $2.4 billion licensing deal
In this photo illustration, a man seen holding a smartphone with the logo of US artificial intelligence company Cognition AI Inc. in front of website.
Timon Schneider | SOPA Images | Sipa USA | AP
Artificial intelligence startup Cognition announced it’s acquiring Windsurf, the AI coding company that lost its CEO and several other senior employees to Google just days earlier.
Cognition said on Monday that it will purchase Windsurf’s intellectual property, product, trademark, brand and talent, but didn’t disclose terms of the deal. It’s the latest development in an AI talent war, as companies like Meta, Google and OpenAI fiercely compete for top engineers and researchers.
OpenAI had been in talks to acquire Windsurf for about $3 billion in April, but the deal fell apart, and Google said on Friday that it hired Windsurf’s co-founder and CEO Varun Mohan. Google is paying $2.4 billion in licensing fees and for compensation, as CNBC previously reported.
“Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Cognition CEO Scott Wu wrote in a memo to employees on Monday. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”
Cognition didn’t immediately respond to CNBC’s request for comment. Windsurf directed CNBC to Cognition.
Cognition is best known for its AI coding agent named Devin, which is designed to help engineers build software faster. As of March, the startup had raised hundreds of millions of dollars at a valuation of close to $4 billion, according to a report from Bloomberg.
Both companies are backed by Peter Thiel’s Founders Fund. Other investors in Windsurf include Greenoaks, Kleiner Perkins and General Catalyst.
“I’m overwhelmed with excitement and optimism, but most of all, gratitude,” Jeff Wang, the interim CEO of Windsurf, wrote in a post on X on Monday. “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”
Wu said that the acquisition ensures all Windsurf employees are “treated with respect and well taken care of in this transaction.” All employees will participate financially in the deal, have vesting cliffs waived for their work to date and receive fully accelerated vesting for their, according to the memo.
“There’s never been a more exciting time to build,” Wu wrote.
WATCH: Google snatches Windsurf CEO after OpenAI deal dissolves
Meta CEO Mark Zuckerberg looks on before the luncheon on the inauguration day of U.S. President Donald Trump’s second presidential term in Washington on Jan. 20, 2025.
Evelyn Hockstein | Reuters
Meta on Monday said it has removed about 10 million profiles for impersonating large content producers through the first half of 2025 as part of an effort by the company to combat “spammy content.”
The crackdown is part of Meta’s broader effort to make the Facebook feed more relevant and authentic by taking action against and removing accounts that engage in “spammy” behavior, such as content created using artificial intelligence tools.
As part of that initiative, Meta is also rolling out stricter measures to promote original posts from creators, the company said in a blog post.
Facebook also took action against approximately 500,000 accounts that it identified to be engaged in inauthentic behavior and spam. These actions included demoting comments and reducing distribution of content, which are intended to make it harder for these accounts to monetize their posts.
Meta said unoriginal content is when images or videos are reused without crediting the original creator. Meta said it now has technology that will detect duplicate videos and reduce the distribution of that content.
The action against spam and inauthentic content comes as Meta increases its investment in AI, with CEO Mark Zuckerberg on Monday announcing plans to spend “hundreds of billions of dollars” on AI compute infrastructure to bring the company’s first supercluster online next year.
This mandate comes at a time when AI is making it easier to mass-produce content across social media platforms. Other platforms are also taking action to combat the increase of spammy, low-quality content on social media, also known as “AI slop.”
Google’s YouTube announced a change in policy this month that prevents content that is mass-produced or repetitive from being eligible for being awarded revenue.
This announcement sparked confusion on social media, with many users believing this was a reversal on YouTube’s stance on AI content. However, YouTube clarified that the policy change is aimed at curbing unoriginal, spammy and repetitive videos.
“We welcome creators using AI tools to enhance their storytelling, and channels that use AI in their content remain eligible to monetize,” said a spokesperson for YouTube in a blog post to clarify the new policy.
YouTube’s new policy change will take effect on Tuesday.
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