2026 Outlook: AI, Physical AI & China Tech

Infrastructure AI ramp coming to the 3.5rd year, and more LLM benchmarks coming out with stronger and stronger model capability, but what consumers want to see could be just a smaller model for daily use and other AI applications - such as robotaxi, robot - instead of a strong central AI that take out all of their jobs.

In 2026, we expect to see some demonstration in developed countries, and the advent of physical AI. Within physical AI, except Nvidia chip and Broadcom chip, all other chips and devices can all be done within China. 2026 will be an important year for China tech to proliferate to overseas.

In China, there are >100 robot companies, but there are only 3 leading robotaxi players that can generate revenue through real driving on the road instead of in geo-defenced area. They are : WeRide, Pony, Baidu.

For any reader visiting major cities in China especially Beijing, you will see all 3 players on the road already; for any reader visiting Dubai/Qatar in middle east, you shall be able to see WeRide on the road even at night! All 3 are migrating to Nvidia Thor in car. These 3 will be the top competitors with Waymo and Tesla in non-US market.