Automakers and Alibaba pivot toward robotics and massive AI models

Major technology and automotive players are pivoting toward machine intelligence and humanoid robotics. Approximately 20 mainstream automakers, including Tesla, Xpeng, and BYD, have entered the humanoid robot sector as of the first half of 2026. These companies aim to leverage existing expertise in electric vehicles, sensors, chips, and AI algorithms to create a new growth engine.

Tesla is testing its Optimus robot in internal production lines, while Xpeng has deployed its IRON robot for logistics and sorting in its Guangzhou factory. BYD is focusing on self-developed core components, such as reducers, to lower costs. However, the industry faces significant hurdles, including high production costs, the need for stable long-term operation, and potential market oversaturation.

In the realm of software and infrastructure, Alibaba CEO Wu Yongming announced at the 2026 Apsara Conference that the company’s Qwen team aims to train new models with 5 to 10 trillion parameters. Alibaba is positioning itself to support the era of machine intelligence through three pillars: AI models, AI chips (including the new Zhenwu V900), and AI cloud infrastructure, with a goal to expand its global data center capacity to over 20GW by 2032.