TechCrunch Mobility: ‘Physical AI’ enters the hype machine

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It’s been a minute, people! As you may remember, this newspaper took a short holiday break. We’re back in 2026. And a lot has happened since the last edition.

I spent the first week of the year at Consumer Electronics Show in Las Vegas. And when I wrote about this January is overit’s worth repeating: US automakers have left the building.

What has filled the space in the Las Vegas Convention Center? Independent car companies (Zoox, Tensor Auto, Part IVand That’s itwho he retweeted his Zeekr RTto name a few), Chinese car manufacturers prefer Geely and His friendsoftware and car companies, and more about what Nvidia CEO Jensen Huang it calls it “physical AI.”

This term, sometimes called “embedded AI,” describes the use of AI outside of the digital world and into a real, physics-based environment. AI models, combined with sensors, cameras, and vehicle controls, allow a physical object – a humanoid robot, a drone, an autonomous forklift, a robotaxi – to perceive and understand the environment and make operational decisions within it. And it was everywhere from agriculture and robotics to autonomous vehicles and drones, manufacturing, and clothing.

Hyundai it had one of the busiest and biggest shows with a long line around the entrance. The Korean automaker wasn’t showing off the cars. No, they were different types of robots, plus Atlas humanoid robotwith the help of his branch Boston Dynamics. There were also new releases Concept of the company Hyundai Motor Group Robotic LABincluding a robot that drives electric vehicles, and a four-wheel electric platform called the Mobile Eccentric Droid (MobEd) that is going into production this year. It seems that everyone was embracing and showcasing robotics, especially humanoids.

The hype around humanoids, in particular, and AI bodies, in general, was understandable. I asked That mobile co-founder and president Amnon Shashua about this because his company just bought his humanoid robotics startup for $900 million: “What do you say when people tell you that humanoid robots are fake?”

“The Internet was also a hype, remember in 2000, the problem of the Internet,” said Shashua. “It doesn’t mean that (the Internet) isn’t a real thing. Hype means that companies are considered very valuable for a certain period of time, and then they crash. It doesn’t mean that this place isn’t real.

A few notable news from CES:
Nvidia introduces Alpamayo, an open-source AI model that allows autonomous cars to ‘think like a human’

This is Uber’s new robotaxi from Lucid and Nuro

Mobileye acquires humanoid robot startup Mentee Robotics for $900M

Now on to some non-CES and recent news…

A little bird

President Trump made comments this week at a meeting of the Detroit Economic Club about welcoming Chinese automakers to the United States that did not resonate with many auto dealers, according to those I spoke to. Specifically, I have been told that Alliance for Automotive Innovation (the industry lobby) is “disrupting,” one DC told me.

“If they want to come and build a plant and hire you and hire your friends and neighbors, that’s great, I love it,” Trump said. according to the media attend. “Let China in, Japan in.”

Several notes. Japanese companies like it Toyota it is very old in the United States. The main obstacle, beyond protests from the US auto industry, is existing regulations. In 2025, the US Department of Commerce’s Bureau of Industry and Security issued an order that prohibits importation and sale for other connected vehicles with similar devices and connected software in China or Russia. This bans the sale of Chinese cars in the country.

Avery Ashwho is the CEO of SECUREa non-governmental organization that focuses on US energy supply, critical infrastructure, and supply chains, weighed the risks of allowing Chinese automakers to sell their cars in the United States. Side: Ash was on my podcast, and Autonocastwhich affects some of this matter.

“Welcoming Chinese automakers to build cars here in the U.S. will reverse this success and put Americans at risk,” he said. “We’ve seen this trend back in Europe and elsewhere — it could have a devastating effect on our auto industry, have a negative effect on our entire defense industry, and make every American safer.”

Meanwhile, Canada is opening the door to Chinese automakers. Canadian Prime Minister Mark Carney announced that his country will reduce the 100% tax on Chinese EVs to only 6.1%, Sean O’Kane says.

“Have a tip to share on the Little Bird episode? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or my Signal at kkorosec.07, or email Sean O’Kane at sean.okane@techcrunch.com.

Sales!

Budget carrier They say agreed to buy a competitor Opinions of the company Sun Country Airlines about $1.5 billion in cash and property.

Commercialwhich sells software to automotive OEMs and dealers, was found and a group of investors led by Wavecrest Growth Partners and Radian Capital. Motor Vehicles and Vehicle Managers David Metter and Devin Daly also participated. The word has not been disclosed.

Operator of long-distance buses and trains Flix he got a big share of the European airport transfer-platform Flibco. The Luxembourg company SLG will retain its ownership in Flibco. Terms were not disclosed.

JetZeroLong Beach, California, in the beginning of the production of a three-dimensional aircraft designed to burn fuel, raised $ 175 million in a Series B round led by B Capital, Bloomberg said.

Joby Aviationelectric taxi company, they agreed to purchase a 700,000-square-foot manufacturing facility in Dayton, Ohio, to support its plans to build four planes a month by 2027.

no he is he got a deal sold its lidar business to a company called Quantum Computing Inc. at a cost of only $22 million. If that seems low, you’re right. Luminar’s valuation rose in 2021 at $11 billion.

Popular reading and more

Bluspark Globala New York-based software development and deployment company, did not realize that its platform was vulnerable and open to anyone on the Internet. Here’s how a security researcher (and TechCrunch) put it.

The Federal Trade Commission ended the restraining order General Motors and its OnStar telematics service for sharing consumer information with consumer reporting agencies. Read the full article on what it means.

InDrivea company that started as a ride-hailing platform that allows users to set a price, is changing and starting to act on its “super app” strategy. This means central marketing in more than 20 markets and expansion of sales in Pakistan. Read the full article here.

Travelmany independent Hyundai companies, will resume. When Motional suspended its operations last year, I had no idea it would survive. Some AV companies with big sponsors have seen their money suddenly run out, so it made sense. But the company is here and it has a new AI-first solution. Before you close your eyes at that time, read my storywhich includes a demo ride and an interview with CEO Laura Major. So feel free to inbox me with your thoughts.

New York Governor Kathy Hochul plans to introduce legislation that would allow the deployment of robots in states other than New York City. There is no information on this yet; I’m told that all will be revealed in his big budget proposals next week. What we do know is that the proposal was made to expand the state’s AV pilot program to allow for “smaller deployments of passenger vehicles outside of New York City.” My article goes into detail about what he shared as well provides updates on Waymo’s NYC franchise.

Tesla and opt out of the one-time payment method for its Full Self-driving (Supervised) program and will now sell access to this feature through a monthly subscription.

Drone delivery company on demand Wings bringing its service to 150 others Walmart stores as part of to develop cooperation and the seller.