TLDR
- Ant Group showcased its first humanoid robot R1 at Shanghai’s Inclusion Conference, focusing on AI software development rather than hardware manufacturing
- The R1 robot can serve as tour guides, sort medicine, provide medical consultation, and perform kitchen tasks using Ant’s BaiLing AI model
- Tesla CEO Elon Musk predicts Optimus robots could represent 80% of Tesla’s valuation, with production targets of 1 million units annually within five years
- Wall Street analysts project the humanoid robot market could reach $5-7 trillion by 2050, making Tesla’s ambitious valuation claims potentially realistic
- Chinese companies like Unitree and X-Humanoid are emerging as strong competitors, with some outperforming at recent robotics competitions
Jack Ma-backed Ant Group unveiled its first humanoid robot on Thursday, joining Tesla in the race to commercialize advanced robotics technology. The move represents a major strategic shift for the fintech company known for Alipay payments.
Ant’s robotics unit Robbyant demonstrated the R1 humanoid model at Shanghai’s 2025 Inclusion Conference. The robot showcases capabilities including tour guiding, pharmacy medicine sorting, medical consultation, and basic kitchen tasks.
Jack Ma-backed Ant showcased its first humanoid robot, formally joining an intensifying effort by Chinese companies to compete with the US https://t.co/TNlEyY4GvG
— Bloomberg (@business) September 11, 2025
The R1 uses Chinese-made components from suppliers including Ti5 robot for joint modules and Ant-backed Galaxea AI for the chassis. Ant is also discussing partnerships with Unitree and Shanghai-listed Orbbec Inc., according to sources familiar with the matter.
Unlike hardware-focused competitors, Ant concentrates on developing AI brains for robots. The company views humanoids as a gateway to popularizing AI chatbots and assistants through its BaiLing large language model.
“If humanoid robots are used in homes, they won’t just help with everyday tasks, they’ll act like super-smart brains,” said Robbyant CEO Zhu Xing. The robots tap into cloud-based AI to expand their capabilities beyond basic functions.
Ant’s AI enables end-to-end planning of complex tasks like meal preparation and serving. The system can theoretically learn new recipes and adapt to different kitchen tools through spatial perception technology.
The company currently tests robots in community care centers and restaurants rather than selling to retail customers. No pricing has been announced yet for the R1 model.
Tesla’s Trillion-Dollar Robot Vision
Tesla CEO Elon Musk made a bold prediction that Optimus robots could represent 80% of Tesla’s valuation. With Tesla’s current market cap exceeding $1 trillion, this suggests the robot business could be worth $4 trillion or more.
The first Tesla Optimus AI concert! pic.twitter.com/BffacFgyiF
— TESLA CARS ONLY⚡️ (@teslacarsonly) September 3, 2025
Wall Street analysts support the massive market potential. Morgan Stanley projects the humanoid robot market could exceed $5 trillion, while Citi estimates $7 trillion by 2050.
Musk targets producing 1 million Optimus units annually within five years. He expects monthly production of 100,000 robots within 60 months, priced between $20,000-$30,000 per unit.
At projected volumes and pricing, Optimus could generate $30 billion in annual revenue by the early 2030s. Using Tesla’s current price-to-sales ratio, this translates to roughly $400 billion in business value.
The humanoid robot applications span manufacturing, elderly care, household chores, and security services. If technology reaches its potential, the multi-trillion dollar market projections appear achievable.
Competition Intensifies
Tesla faces growing competition from Chinese robotics companies. Unitree and X-Humanoid emerged as top performers at August’s World Humanoid Robot Games, demonstrating advanced capabilities.
China already maintains higher robot density per human in factories compared to the US and Japan. The country prepares humanoids for increasingly complex roles beyond manufacturing.
Ant’s entry adds another well-funded competitor with strong AI capabilities. The company leverages its experience in payments, finance, and digital services to differentiate its robotics approach.
Tesla’s robotaxi ambitions could also complicate Musk’s Optimus valuation predictions. Ark Invest estimates the robotaxi market could reach $10 trillion by 2030, potentially overshadowing the robot business.
Both companies test their robots in controlled environments before broader deployment. Safety concerns and regulatory approval processes may slow commercial rollouts.
The competition extends beyond hardware to AI software development. Success depends on creating scalable AI models that enable robots to perform diverse tasks reliably.
Ant continues expanding its AI investments beyond robotics, including healthcare applications and semiconductor development partnerships. The company launched an AI medical report analysis app called AQ in June and acquired online healthcare platform Haodf.com this year.
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