China's Robot Makers Prioritize AI Development for Enhanced Functionality

After years of focusing on the physical capabilities of humanoid robots, Chinese companies are now heavily investing in developing the artificial intelligence necessary to make these machines more versatile and useful across various jobs. This shift is driving an investment boom in embodied AI, which focuses on software enabling robots to understand their environment, learn new tasks, and adapt without constant reprogramming. Chinese embodied AI companies raised 93.5 billion yuan ($13 billion) in the first half of 2026, a fivefold increase from the previous year.