China and the US race ahead as physical AI moves beyond software.
Physical AI dominated CES this year, with robots, smart machines, and autonomous systems everywhere. Just four years after ChatGPT pushed artificial intelligence into everyday conversation, the focus has clearly shifted from software on screens to AI that moves, listens, and acts in the real world.
At the Las Vegas show, almost every major stand promised a future where machines help with work, care, and daily routines. At CES, big players in technology and automotive had an opportunity to showcase how AI technology can and will be integrated into the way we live and work. Attendees will have seen robots dealing playing cards, folding paper, and even dancing with people in the crowd.
There were also many smaller companies promoting AI-powered solutions for hair cutting, cleaning laundry, and providing emotional support.
While CES lit up with excitement, many investors still had serious concerns about how close any of these products would be to being available as affordable consumer products.
Arm executive Chris Bergey summed up the mood when he said, “AI is really driving a whole innovation and demand cycle.” His company has even created a new physical AI unit to grow its robotics business. Still, most experts agree that useful humanoid servants remain some distance away.
The interest in AI has expanded beyond CES. Cryptopolitan reported how the AI ecosystem in China, particularly in Hangzhou, is rapidly growing due to companies creating robots, chips, and “embodied intelligence” systems, which the Chinese government has prioritized.
Additionally, the report includes warnings from the US about the fast-paced way in which AI will be applied in the real world, leading to increased competition around the world.
Humanoid robots attracted many audiences at CES; however, due to their limited capabilities and slow movements, it was clear to everyone that there is still much work to do before they can work outside of controlled environments.
Issues like limited battery, high costs, and low processing power make it difficult for humanoid robots to perform all tasks in all environments. Therefore, according to analysts, it may be many years before consumers have an affordable humanoid robot helper available to them.
Meanwhile, some firms are choosing more practical paths. Lenovo hosted a major CES event showcasing its Qira AI assistant, designed to work across phones, PCs, and other devices. Meta upgraded its Ray-Ban smart glasses, while Google launched Gemini AI for TVs and home systems.
As important as the software that drives AI technology, AI Hardware has become an essential part of the technology ecosystem. An increasing number of companies want to utilize AI directly within their devices for cost-reduction purposes.
In reference to the increasing costs associated with AI, Chief Technology Officer of Perplexity AI, Aravind Srinivas, stated, “If you haven’t been paying attention to the cost of AI throughout 2025, you must have been living under a rock.”
Creative Strategies chief Ben Bajarin offered a cautious view.
“I think the general consumer is still not aware of what an AI PC really means or what it can do for them.”
– Bajarin.
For now, many AI-powered products still look like old “smart” devices with a new label.
In response to this trend, chipmakers have reacted quickly, introducing new products aimed at the growing use of AI technologies in business and consumer computing environments. For example, Intel recently announced its newest AI chip line, Panther Lake, designed specifically for laptops, while AMD also released new processors specifically designed to enable the creation of AI-enabled PC products.
In addition to being faster than previous products, these new products also offer improved battery life and enhanced security features, but whether or not consumers fully appreciate the added benefits of these new products is still unknown.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It’s free.
