Xpeng shifts to physical AI, plans robotaxi trials and humanoid robot production by 2026

Chinese automaker Xpeng touts AI pivot in face of fierce competition

GUANGZHOU, China, Jan 9 (Reuters) - Chinese automaker Xpeng (9868.HK), opens new tab said it wanted to become better known as a "physical AI" company rather than just a carmaker, as it gears up to launch street trials of robotaxis and start mass producing humanoid robots later this year. Robots and autos are the core of physical artificial intelligence and share a wide range of existing sensor tech and other hardware. Automakers, for example, are creating robots to automate warehouse and factory tasks. He Xiaopeng, founder and CEO of the company - one of China's best-selling electric vehicle startups and a Volkswagen (VOWG.DE), opens new tab partner - on Thursday said that with automakers facing intense competition, integrated AI capabilities with XPeng's in-house "Turing" AI chip will give it an advantage. "XPeng definitely does not want to become a car company that simply sells hardware cheaply," he said at an event in Guangzhou. "We want to become a global technology company, a company with strong differentiation. The effort to reposition itself echoes similar efforts by Elon Musk's Tesla (TSLA.O), opens new tab to expand into making humanoid robots and robotaxis as part of a sharp rise in the use of AI globally. Underlining growing interest in physical AI, chip technology company Arm Holdings told Reuters this week that it had reorganized to create a physical AI unit to expand its presence in the robotics market. Another Chinese automaker, Li Auto (2015.HK), opens new tab in 2023 unveiled a repositioning towards AI, with founder Li Xiang saying that it had invested more than 6 billion yuan ($859.1 million) in AI models, computing power and infrastructure annually. Xpeng's shift also comes as China's auto market, the world's largest, has been embroiled in a years-long price war that has hurt profits. Xpeng's He unveiled four revamped car models at the Guangzhou event, emphasizing new software features including 3D navigation systems, advanced hazard alerts beyond the immediate line of sight and improvements in autonomous driving systems. He said Xpeng has also been hiring and investing in developing autonomous driving and humanoid robots centred on its in-house AI capabilities. The company will begin mass production of humanoid robots in the second half of 2026 and will begin street trials of robotaxis "very soon," He said. Xpeng recorded a net loss of 380 million yuan in the third quarter and He previously said he expected to break even by the end of 2025. Reporting by David Kirton in Guangzhou, Additional reporting by Zhang Yan in Shanghai; Editing by Brenda Goh and Thomas Derpinghaus Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * China Strategy * ADAS, AV & Safety * EV Battery * Sustainable & EV Supply Chain

China's Xpeng CEO Touts 'Physical AI' Vision, Says Robotaxi Testing Will Happen 'Soon' - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Xpeng Inc. (NYSE:XPEV) CEO He Xiaopeng has reiterated the company's focus on physical AI and robotaxi goals. Not Just An Automaker The CEO, speaking at an event in Guangzhou, China, on Thursday, shared that the company should also be known for its "physical AI" rather than just an automaker, Reuters reported on Friday. The Xpeng CEO said that the automaker would benefit from its in-house Turing AI chip amid the sector's push towards AI-integrated vehicles. He shared that the company "does not want to become a car company that simply sells hardware cheaply," adding that he wished for the company to "become a global technology company" instead. The CEO also reaffirmed Robotics and Robotaxi commitments, outlining that the company's humanoid robot would enter production in the latter half of the year, while the Robotaxi would begin trials soon, according to the report. Xpeng's goals could put it firmly in competition with Elon Musk's EV giant Tesla Inc. (NASDAQ:TSLA), which currently operates a ride-hailing service in multiple U.S. cities, as well as working on its Optimus humanoid robot. Xpeng's Robotaxi And Robotics Goal The automaker, during its third-quarter investor meeting last November, shared that it will be releasing 3 Robotaxi models in 2026, adding that the operations were not dependent on "high-definition maps or LiDAR." Xpeng also said that its Vision-Language-Action (VLA) model would be open-source, signalling possible licensing opportunities. The company will offer its Robotaxi service this year through Chinese tech giant Alibaba Group Holding Limited's (NYSE:BABA) Amap mapping platform. The company's technology could also challenge chipmaker Nvidia Corp's (NASDAQ:NVDA) Alpamayo self-driving technology, which is also an open-source model taking the VLA approach. On the Robotics front, Xpeng said that its IRON robot would be deployed in "commercial scenarios, providing services like tour guiding, retail assistance and patrols." The company also shared that it will target producing 1 million units annually by 2030. Check out more of Benzinga's Future Of Mobility coverage by following this link. Image via Shutterstock BABAAlibaba Group Holding Ltd$150.23-2.74%OverviewNVDANVIDIA Corp$185.700.36%TSLATesla Inc$436.870.25%XPEVXPeng Inc$20.38-0.71%Market News and Data brought to you by Benzinga APIs