Huawei has unveiled a new direction in its “automotive-inspired” approach to business, entering a promising industry with significant potential.
Recently, the Huawei (Shenzhen) Global Embodied Intelligence Industry Innovation Center, established in collaboration with the Qianhai Administration of Shenzhen and the Bao’an District Government, officially commenced operations. As part of this launch, Huawei signed Memorandums of Understanding (MOUs) with 16 companies, including Leap Robot, Topstar, EFORT, and Zhaowei Machinery, representing the upstream, midstream, and downstream sectors of the embodied intelligence industry.
What is Embodied Intelligence?
In simple terms, embodied intelligence refers to the integration of artificial intelligence into physical entities like robots. This allows machines to interact with the physical world and adapt to unseen tasks, catering to industrial, household, medical, and elderly care applications. Examples include humanoid and industrial robots.
Humanoid robots, in particular, are widely regarded as the most suitable development path for embodied intelligence due to their potential adaptability across diverse scenarios.
Huawei’s involvement in the field dates back two years. In April 2022. Huawei partnered with CloudMinds to explore humanoid robotics. This June, Huawei collaborated with Leap Robot to unveil Kuafu, the first humanoid robot powered by Huawei Cloud’s Pangu Embodied Intelligence Model.
These efforts have sparked speculation that Huawei is formally entering the robotics industry.
1. Why is Huawei Targeting the Robotics Industry?
The robotics and automotive sectors share key similarities.
“Huawei’s transition from cars to robots demonstrates some overlap between the technologies and supply chains of the two industries. Otherwise, why would companies like Xiaomi, Tesla, XPeng, and Changan rush to diversify into robotics?” an industry observer told SourceMedia.
Huawei has built a robust industrial ecosystem through years of R&D in smartphone manufacturing, spanning supply chains, chips, systems, and computing power. Innovations like the HarmonyOS, Kirin chips, and processors such as Kunpeng and Ascend serve as a strong foundation.
Beyond smartphones, Huawei’s expansion into the automotive sector has further enhanced its integration capabilities. Observations show that many core automotive suppliers, such as Tuopu Group and Sanhua Intelligent Controls, also play critical roles in robotics.
Moreover, smartphones and cars are major downstream applications for robots. For instance, Tesla’s Optimus robot, BYD’s investments in SenseTime robots, and XPeng’s PX5 humanoid robot have all been tested within automotive production lines over the past year.
In essence, robotics and automotive industries share high levels of synergy in supply chains. Huawei’s involvement in both provides ready-made testing grounds for robots, significantly reducing trial-and-error costs.
Compared to Tesla’s robotics endeavors, Huawei’s longstanding expertise in smartphones and automotive technology gives it an edge in terms of technological resources and user base.
“Within embodied intelligence, Huawei acts as a technological enabler,” said Lu Hanchen, director of GGII Robotics Institute. Huawei already boasts full-stack capabilities in chip R&D, communication technology, operating systems, and cloud computing, allowing it to support its partners comprehensively.
However, whether Huawei will launch its own robot products or focus on providing intelligent solutions, similar to its automotive approach, remains a point of debate.
“From available information, Huawei’s role in embodied intelligence resembles its approach to smart vehicles—providing intelligent foundations to empower partners,” Lu noted.
2. AI Robots Need $50 Billion to Get Started
Aside from industrial synergies, Huawei’s interest in embodied intelligence may be driven by the rapid growth potential of humanoid robotics.
GGII forecasts the global humanoid robotics market to reach $1.017 billion in 2024 and expand to $15 billion by 2030. with a compound annual growth rate (CAGR) exceeding 56%. By then, global sales volumes are expected to jump from 11.900 units to 605.700 units.
Similarly, a recent Goldman Sachs report anticipates explosive growth in humanoid robotics by 2035. revising its total addressable market (TAM) estimate upward from $6 billion to $38 billion. This surge is attributed to significant increases in projected shipments, reaching 1.4 million units by 2035.
Beyond projections, companies like UBTECH, SenseTime, 1X Technologies, CloudMinds, and Leap Robot are accelerating commercialization, particularly through collaborations with new energy vehicle manufacturers, signaling imminent breakthroughs in practical applications.
Investment activity reflects this optimism. According to ITjuzi data, the humanoid robotics sector recorded 46 financing events totaling 11.68 billion RMB ($1.59 billion) by November 5. 2024. surpassing last year’s total of 5.92 billion RMB ($810 million).
Meanwhile, major automakers, battery manufacturers, and component suppliers—including Changan Auto and German automotive supplier Schaeffler—have joined the robotics race. Reports suggest that CATL is even working with Shanghai Jiao Tong University on humanoid and quadruped robots.
This wave of interest underscores the industry’s explosive potential, which may explain Huawei’s strategic entry.
Still, robotics is a costly endeavor.
“NIO CEO William Li once said car manufacturing required a funding threshold of $2 billion a few years ago. Now, you can’t do it without $4 billion,” recalled a source.
XPeng CEO He Xiaopeng recently remarked, “AI robots are even harder to make than
AI cars. It takes capabilities in AI, chip development, and hardware engineering. Without a $50 billion investment, it’s almost impossible to do it well.”
Unlike heavily capitalized startups like XPeng, Huawei has adopted a more asset-light strategy. This echoes its approach in the automotive sector, where it refrains from manufacturing cars directly and instead provides smart solutions.
3. Applying Huawei’s “Automotive Playbook” to Robotics
Huawei’s automotive approach could serve as a model for its robotics ventures.
The company’s automotive strategy includes three pillars: component supply, the Smart Selection Car Model (e.g., AITO), and its Huawei Inside (HI) model. For Smart Selection, Huawei provides technology, components, and marketing support without owning manufacturing plants.
In robotics, Huawei may adopt a similar strategy. Media reports suggest Huawei plans to integrate its resources, including its 2012 Labs, Huawei Cloud EI product team, and research institutes in London and Munich. These efforts aim to create key technologies like “embodied intelligence brains” and toolchains while solving shared industry challenges in collaboration with robotics manufacturers.
Huawei’s official stance on whether it will replicate its “automotive model” in robotics remains unclear, as the company has yet to respond to inquiries from SourceMedia.
