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Chinese language automaker Xpeng touts AI pivot in face of fierce competitors

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Last updated: January 10, 2026 7:50 am
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Chinese language automaker Xpeng touts AI pivot in face of fierce competitors
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By David Kirton

GUANGZHOU, China, Jan 9 (Reuters) – Chinese language automaker Xpeng stated it needed to turn into higher often known as a “bodily AI” firm reasonably than only a carmaker, because it ​gears as much as launch road trials of robotaxis and begin mass producing humanoid robots later ‌this yr.

Robots and autos are the core of bodily synthetic intelligence and share a variety of current sensor tech and ‌different {hardware}. Automakers, for instance, are creating robots to automate warehouse and manufacturing facility duties. He Xiaopeng, founder and CEO of the corporate – one in all China’s best-selling electrical car startups and a Volkswagen companion – on Thursday stated that with automakers dealing with intense competitors, built-in AI capabilities with XPeng’s in-house “Turing” AI chip will give it ⁠a bonus.“XPeng undoubtedly doesn’t need ‌to turn into a automobile firm that merely sells {hardware} cheaply,” he stated at an occasion in Guangzhou. “We wish to turn into a worldwide know-how firm, an organization ‍with robust differentiation.The trouble to reposition itself echoes related efforts by Elon Musk’s Tesla to broaden into making humanoid robots and robotaxis as a part of a pointy rise in using AI globally. Underlining rising curiosity in bodily ​AI, chip know-how firm Arm Holdings informed Reuters this week that it had reorganized to create ‌a bodily AI unit to broaden its presence within the robotics market. One other Chinese language automaker, Li Auto in 2023 unveiled a repositioning in the direction of AI, with founder Li Xiang saying that it had invested greater than 6 billion yuan ($859.1 million) in AI fashions, computing energy and infrastructure yearly.

Xpeng’s shift additionally comes as China’s auto market, the world’s largest, has been embroiled in a years-long value struggle that has damage ⁠earnings. Xpeng’s He unveiled 4 revamped automobile fashions on the Guangzhou ​occasion, emphasizing new software program options together with 3D navigation techniques, superior ​hazard alerts past the quick line of sight and enhancements in autonomous driving techniques. He stated Xpeng has additionally been hiring and investing in creating autonomous driving and ‍humanoid robots centred on its ⁠in-house AI capabilities. The corporate will start mass manufacturing of humanoid robots within the second half of 2026 and can start road trials of robotaxis “very quickly,” He stated. Xpeng recorded a ⁠web lack of 380 million yuan within the third quarter and He beforehand stated he anticipated to interrupt even by ‌the top of 2025.

(Reporting by David Kirton in Guangzhou, Further reporting by Zhang Yan in ‌Shanghai; Enhancing by Brenda Goh and Thomas Derpinghaus)

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