TechCrunch Mobility: ‘Physical AI’ enters the hype machine

Welcome back to the latest insights from the forefront of transportation innovation. The landscape has dramatically shifted as we dive into 2026, particularly highlighted by the recent Consumer Electronics Show in Las Vegas. This year, the absence of U.S. automakers was conspicuous, making way for a surge of autonomous vehicle technology firms. Companies like Zoox, Tensor Auto, and Waymo, which has rebranded its Zeekr RT, dominated the scene alongside Chinese automotive giants such as Geely and GWM. The spotlight was on a concept gaining traction in the industry known as 'physical AI' or 'embodied AI.' This refers to the integration of AI systems into tangible entities like humanoid robots, drones, and autonomous vehicles, enabling them to perceive and navigate the physical world. The applications of physical AI were evident across various sectors, ranging from agriculture and robotics to industrial manufacturing and wearable technologies. Hyundai made a significant impression with an expansive exhibit showcasing its latest robotic advancements, including the Atlas humanoid robot from Boston Dynamics and a robot designed to recharge electric autonomous vehicles. The Mobile Eccentric Droid (MobEd), a four-wheeled electric platform, is set for production this year, underscoring the company's commitment to robotics. The enthusiasm surrounding humanoid robots and physical AI was palpable throughout the event. Amnon Shashua, co-founder and president of Mobileye, addressed the skepticism surrounding humanoid robots after his company acquired a robotics startup for a staggering $900 million. He drew parallels to the early internet era, suggesting that hype does not negate the potential of a technology. In other significant news from CES, Nvidia announced Alpamayo, a new AI model that enables autonomous vehicles to 'think like a human.' Meanwhile, Uber unveiled its latest robotaxi collaboration with Lucid and Nuro. In the wider automotive landscape, comments from former President Trump regarding the welcoming of Chinese automakers in the U.S. have stirred concerns within the industry, especially among lobbying groups like the Alliance for Automotive Innovation. The proposed changes could potentially contradict existing laws that restrict certain imports linked to China or Russia, raising alarms about national security and economic impacts. Additionally, Canada is now easing its import taxes on Chinese electric vehicles, a move that could influence the dynamics of the North American automotive market. On the innovation front, various companies are making headlines: Allegiant is set to acquire Sun Country Airlines for approximately $1.5 billion, while Joby Aviation is expanding its production capabilities in Ohio to meet rising demand for electric air taxis. As the automotive and transportation sectors continue to adapt and evolve, the integration of AI and robotics remains at the heart of this transformation.