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A year ago, Hyundai Motor Company appeared to be trailing behind its rivals in the race to fuse artificial intelligence with the automobile. While competitors such as Tesla and BYD showcased advances in humanoid robotics and autonomous driving, Hyundai’s leadership openly acknowledged it had been slow off the starting line.
At the Consumer Electronics Show, earlier this year, Hyundai demonstrated that the tides were beginning to turn, exhibiting an ambitious physical AI project, Atlas—a humanoid robot developed by its US subsidiary Boston Dynamics.
The company now plans to manufacture up to 30,000 Atlas units annually and introduce them into its electric vehicle facility in Georgia by 2028. Designed to operate in temperatures ranging from -20°C to 40°C and capable of lifting loads up to 50kg, the robot can even replace its own battery in minutes—an innovation aimed at keeping production lines running without breaks.
Investors have responded enthusiastically, driving Hyundai’s shares sharply higher this year. The company argues that its vast troves of manufacturing data and decades of production expertise could provide an edge in the “physical AI” race — robotics integrated directly into industrial environments.
Hyundai is also accelerating efforts in autonomous mobility through Motional, its US joint venture with Aptiv. The partnership intends to roll out a fully driverless robotaxi service in Las Vegas before the end of the year, marking a significant step after years of regulatory hurdles and limited real-world testing.
To bolster its capabilities, Hyundai has forged strong ties with AI leaders like Nvidia who they are collaborating with to develop advanced chips and smart factory infrastructure. Alongside this project, Boston Dynamics is working with DeepMind on robotics intelligence. The group’s recent leadership appointments, including alumnae from Tesla and Nvidia, signal a determination to catch up with its rivals.
Some analysts remain sceptical, warning that technical complexity and labour resistance could slow deployment, especially in highly automated “dark factories.” Even so, Hyundai’s executives insist that transforming into a software-driven mobility company is essential for survival. Hyundai is hoping their physical AI pivot will go some way to close the technology gap and allow them to compete on mobility’s global stage.
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