Why the humanoid robot industry struggles to prove real profitability

Kenji Arai18:00 04.11.20265 min read

Manufacturers are shifting their focus from how many units they ship to how much actual work their machines perform. As the industry moves from laboratory demonstrations to warehouse floors, companies are struggling to bridge the gap between massive production numbers and genuine commercial profitability. This shift is essential because current metrics often fail to show if a humanoid robot actually pays for itself through labor savings.

Interact Analysis reported in June that only about 10% of the 20,000 robots produced globally in 2025 reached real-world applications.
China's AGIBOT introduced a new metric called Worken on October 29 to measure "effective intelligent work hours."
The Chinese government issued a directive in June 2026 requiring state-owned enterprises to deploy robots by December 31.

Why is the industry struggling to prove robot productivity?

The robotics sector currently lacks a common yardstick to compare different machines. While some companies report how many hours a machine operates, others focus on how many items it moves or how many units they have sold. This makes it difficult for buyers to know if a robot is a good investment.

According to pymnts.com, existing data points are often incomparable. For instance, Agility Robotics reported that its Digit humanoid moved over 100,000 totes at a Georgia warehouse with 98% accuracy. Meanwhile, Figure AI reported that its Figure 02 robots handled more than 90,000 sheet metal cycles at a plant in South Carolina. One company measures totes while the other measures metal cycles, making a direct comparison impossible.

AGIBOT is attempting to solve this by using a score called Worken. This metric calculates "effective intelligent work hours" by multiplying active robots by their autonomous hours and an efficiency ratio. This ratio compares the robot's output against a human benchmark. This approach ensures that two fleets of the same size are not treated as equal if one requires constant human help to finish tasks.

Is there a gap between production and real use?

There is a massive disconnect between the number of machines being built and the number of machines actually working in factories. While production is exploding, most of these machines are used for research or entertainment rather than making money for businesses.

Research from techtimes.com notes that global production jumped tenfold from under 2,000 units in 2024 to over 20,000 in 2025. However, the vast majority of these units are not in commercial service. China's manufacturers produced more than 90% of that total volume.

Unitree's own filing ahead of its August listing on the Shanghai STAR Market showed that more than 70% of its revenue came from educational and research customers. Only less than 10% of its sales came from industrial applications. This suggests that the industry is currently building tools for scientists rather than tools for workers.

How much does it cost to deploy these machines?

The high cost of hardware remains a major barrier to widespread adoption. For a robot to be useful in a factory, the price must drop significantly to allow the machine to pay for itself within a reasonable timeframe.

Current Chinese models sell for between 300,000 and 500,000 RMB, which is roughly $44,600 to $74,400 per unit. To achieve a two-year payback period, the price needs to fall toward 160,000 RMB, or about $23,800. This is a manufacturing challenge rather than just a technology problem.

Even if a robot performs well, it may not be profitable. The Worken metric proposed by AGIBOT does not include costs like electricity, maintenance, or integration. A robot might have a high productivity score but still cost more to operate than the human worker it replaced.

How each side tells it

The industry is split between those focusing on rapid technological growth and those focusing on the economic reality of deployment.

AGIBOT views the current era as a transition toward selling results rather than hardware.

"2026 marks the beginning of large-scale deployment for embodied intelligence,"

said AGIBOT's senior vice president.

On the other hand, market analysts highlight the "impossible triangle" that companies must solve. To succeed, a machine must provide autonomous operation, a clear return on investment, and the ability to handle many different tasks at once. Currently, most machines struggle to do all three.

How is China forcing robot adoption?

China is moving away from a market-driven approach and toward a government-mandated approach to ensure robots move into the real world. The goal is to generate the massive amounts of data needed to train more advanced artificial intelligence.

In June 2026, the Chinese Ministry of Industry and Information Technology and the State-owned Assets Supervision and Administration Commission issued a directive. They ordered local governments and state-owned enterprises to deploy these systems into real operations by the end of the year. The target is more than 10,000 units across 100 different scenarios, including healthcare and logistics.

This mandate is a procurement instruction. By forcing state-owned companies to buy robots, the government ensures that machines collect physical interaction logs. These logs are vital because, unlike text-based AI, physical robots need to record how they move and interact with objects to improve their intelligence.

What happens next?

The industry faces several immediate deadlines and milestones. In China, local governments must submit their implementation plans for robot deployment soon, and progress reports are due in November 2026. The official deadline for the government-mandated deployment is December 31, 2026.

In the United States, Agility Robotics is moving toward public markets. Shareholders of Churchill Capital Corp XI approved a merger with Agility, and the combined company is expected to start trading on the Nasdaq on Thursday, November 5. These market movements will provide more data on whether investors believe the robots can actually generate profit.

Frequently Asked Questions

Why are robot companies not focusing on profit yet?
Most companies are currently in a phase of gathering data and proving technical capabilities. They are prioritizing the ability to perform tasks reliably before they can prove the machines will save more money than they cost.

What is the difference between a robot being "active" and "productive"?
An active robot is one that is turned on and moving, while a productive robot is one that completes tasks successfully without needing a human to step in and fix errors.

Will humanoid robots replace human workers soon?
While they are being deployed in warehouses and factories, high costs and the need for constant data collection mean they are currently more common in research labs than in general labor roles.

Sources

Southeast Asia

ASEAN Leaders Call for Localized Academic Partnerships

Education leaders met in Manila on 27-28 October 2026 to demand that international academic partnerships prioritize local economic needs over exported Western models. The discussions focused on ensuring that transnational education and research support regional goals like the blue economy and digital transformation. More than 96,000 students in the ASEAN region are currently involved in UK transnational education programs, according to thepienews.com . The EU-funded SCOPE-HE programme operates with a budget of EUR 9.3 million through January 2028, according to eeas.europa.eu . By 2030 , approximately 39% of current skills will no longer be relevant, according to Michelle Aguilar-Ong of the Philippines' Commission on Higher Education. What are the new priorities for regional education? Regional leaders want education to move away from theoretical models and toward practical skills that support specific local industries. They argue that international cooperation must align with the urgent needs of Southeast Asian economies to be effective. Michelle Aguilar-Ong, a commissioner for the Philippines’ Commission on Higher Education (CHED), stated that her country is preparing a national strategy for transnational higher education. This strategy identifies digital transformation, renewable energy, and the blue economy as the main areas for international cooperation. The goal is to ensure that learning directly supports these sectors. The blue economy is a central focus for both ASEAN and the European Union. Discussions in Manila centered on how higher education and Technical and Vocational Education and Training (TVET) can support fisheries, maritime transport, coastal tourism, and offshore renewable energy. This alignment aims to protect oceans while building stronger communities. How should universities collaborate across borders? Experts suggest that successful partnerships require co-designing programs with local institutions rather than simply transplanting existing foreign curricula. This approach ensures that the education provided is actually valuable to the host country's workforce and economy. Kostantino Kontis, dean for global engagement in China and East Asia at the University of Glasgow, advised that universities should "co-design programs that the partner identifies as valuable". He noted that even small amounts of seed funding can help academics build the foundations for much longer-term partnerships. Sir Steve Smith, the UK’s international education champion, emphasized that transnational partnerships must be mutually beneficial. He argued that successful models should strengthen both the sending and receiving institutions. He also noted that students must receive high-quality teaching, clear information about qualifications, and appropriate support throughout their studies. Why is the UK focusing on Southeast Asia? The United Kingdom views the ASEAN region as a vital long-term partner for research, skills development, and education. British institutions are already deeply embedded in the region through various joint programs and student exchanges. Daley Middleton, head of trade at the UK’s Department for Education, highlighted the massive scale of current engagement. He reported that more than 39,000 students from Southeast Asia studied at UK higher education institutions during the last academic year. This reflects decades of research collaborations and people-to-people connections. Several British universities are already active in the region. These include the University of Reading, University of Leeds, University of Liverpool, Newcastle University, Goldsmiths, and Liverpool Hope. These institutions are working with local partners to develop joint programs that meet regional demands. How do the UK and EU approach these partnerships? While both the UK and the EU seek to deepen ties with ASEAN, they use different frameworks to achieve these goals. The UK emphasizes its extensive experience in transnational education, while the EU utilizes large-scale funding packages to drive connectivity. The European Union manages the SCOPE-HE programme, which is part of the EU’s Global Gateway strategy. This initiative aims to build reliable and inclusive connections through investment in maritime sectors, research, and innovation. The programme runs from February 2024 to January 2028 and is implemented by Nuffic in partnership with the German Academic Exchange Service (DAAD). The UK approach focuses on the quality and experience of its institutions. Daley Middleton noted that while British universities offer "world-class quality," ASEAN nations have many choices. He stated, "As fabulous as we are [in the UK], ASEAN does not necessarily need to choose one partner, and we obviously encourage everyone to advocate for their own needs." How each side tells it The discussions in Manila revealed different perspectives on how international aid and education should be structured to benefit the region. "By 2030, 39% of the skills today won’t be relevant anymore." Michelle Aguilar-Ong, Commissioner of the Philippines’ Commission on Higher Education "Whether the blue economy succeeds will come down to more than growth figures; it will show in whether our oceans hold up, whether communities are stronger, and whether young people have real prospects." Dr Kao Kim Hourn, ASEAN Secretary-General What happens next? The outcomes of the Manila meetings will be formalized into the Manila Policy Brief. This document will provide actionable recommendations for policymakers and stakeholders to improve cooperation and support inclusive growth. The SCOPE-HE programme will continue its work in the region until its scheduled end in January 2028. Frequently Asked Questions What is the "blue economy" in education? It refers to education and training focused on sustainable maritime industries, such as fisheries, coastal tourism, and offshore renewable energy. What is transnational education (TNE)? TNE involves the delivery of higher education by an institution from one country to students in another country, often through joint degrees or local partnerships. How many Southeast Asian students study in the UK? More than 39,000 students from the region studied in UK higher education institutions in the last academic year, according to the UK Department for Education.

Sara Lindqvist·14:00 11.11.2026

Robot Race

Tesla Shifts Focus to Robotics as We Await the Tesla Optimus Release Date

Tesla has officially transitioned its Fremont facility to support humanoid robotics, a move that follows the rapid dismantling of its luxury sedan and SUV assembly lines. This shift toward a new manufacturing focus is central to the company's strategy regarding the tesla optimus release date and its long-term transition from an automaker to an AI and robotics firm. Tesla completed the teardown of its Model S and Model X assembly lines in just 46 days this summer, according to Not a Tesla App . Elon Musk announced during a Q3 2026 earnings call that early production on a high-volume line has begun in Fremont, as reported by Not a Tesla App . The company aims for a future production capacity of 10 million units per year at Giga Texas, according to Not a Tesla App . Why did Tesla stop making the Model S and Model X? Tesla ended production for the Model S and Model X in April after Elon Musk decided to terminate both lines in January. This decision was made specifically to free up factory space and resources for the development and manufacturing of the Optimus humanoid robot. The reconfiguration of the Fremont plant was completed quickly. Not a Tesla App reported that the company spent only 46 days tearing down the existing luxury vehicle lines to make room for the new robotics assembly process. While the space was cleared to accommodate the robot, some observers have questioned the necessity of the move. Electrek noted that critics find the idea of abandoning established car lines for a robot that is not yet ready for mass use to be unconvincing. What is the current status of Optimus production? Tesla has moved into the early stages of manufacturing the Optimus Gen 3 design. The company is currently using the newly cleared space in Fremont to produce what it considers to be the first production-quality units of the humanoid robot. The production ramp-up is expected to be gradual rather than immediate. Elon Musk described the output as an S-curve with a "shallow slope" that will be "somewhat bumpy" because the product is so radically new, according to Not a Tesla App . Tesla expects it will take at least one year to reach a production rate of 20,000 units per week. This delay is largely due to ongoing changes in the electromechanical design and the need to improve the robot's overall reliability and durability. How does Tesla plan to scale robot manufacturing? The company is following a two-stage geographic expansion for its robotics division. The initial high-volume line is located in Fremont, but the long-term goal involves much larger facilities in Texas to meet massive global demand. Tesla plans to build a massive production line at Giga Texas capable of producing 10 million units per year. Currently, the Fremont line is being set up to handle 1 million units per year, according to Not a Tesla App . The hardware will also evolve during this scaling process. While the current focus is on Gen 3, Tesla intends to graduate to the Gen 4 design by the time the Giga Texas capacity becomes fully operational. When will the robots be available to customers? Industrial users will receive the robots before the general public. Tesla intends to deploy Optimus first in settings where it can perform dangerous or repetitive tasks that require continuous, around-the-clock operation. The timeline for external delivery remains several years away. According to Not a Tesla App , the first external and industrial customers are not expected to receive robots until the end of 2027. Musk believes the technology will reach a level of maturity suitable for home use later in the cycle. He stated his conviction regarding the product's potential during the earnings call. "I remain convinced that Optimus will be the biggest product on Earth," Musk also suggested that a new video showcasing the robot performing non-programmed tasks could be released within a month or two to demonstrate its true capabilities. How will the robot's intelligence be upgraded? A major milestone for the Optimus platform involves the integration of the AI5 chip. This new hardware is designed to provide the massive computational power required to manage the complex movements of a humanoid body. The AI5 chip is expected to deliver five times the compute power of a full two-chip AI4 computer. Musk noted that this level of processing is necessary because the robot must handle far more degrees of freedom than a standard vehicle, according to Not a Tesla App . The development of this chip is also moving through the supply chain. The AI5 chip entered trial production at a Samsung facility in Texas last month, with mass production scheduled for next year, and integration into Optimus is expected around April 2027. What happened to the Model S and X software? As Tesla winds down the legacy of its luxury cars, Elon Musk has promised to "open source" the Model S and Model X. He is using the previous release of the original Roadster as a blueprint for this initiative. However, there is significant disagreement regarding what "open source" actually means in this context. Electrek reports that Tesla's previous Roadster release lacked actual open-source licenses, providing only a liability disclaimer rather than the rights to copy or modify the work. The Roadster release consisted of a few small files, including CAN database files and some diagnostic software. It did not include critical components like CAD files, mechanical drawings, or the firmware source code, according to Electrek . If Tesla follows the same pattern for the Model S and X, the release may only include diagnostic tools and minor documentation rather than the core engineering files that would allow others to truly learn from the platform. What happens next? Several key milestones will determine the success of Tesla's robotics pivot over the coming months and years: A potential new demonstration video of Optimus performing non-pre-programmed tasks is expected within the next two months. Tesla aims to solve major AI and electromechanical reliability issues by the end of 2026. Mass production of the AI5 chip is slated for 2026 to support the 2027 robot integration. The first industrial deliveries of Optimus are scheduled for the end of 2027. Frequently Asked Questions When can I buy a Tesla Optimus robot? Individual consumers should not expect to buy a robot for home use in the near future. Tesla is targeting industrial customers first, with deliveries expected to begin in late 2027. Is Tesla actually open-sourcing the Model S and X? While Elon Musk has promised to open-source these models, critics argue that Tesla's previous "open source" release of the Roadster lacked the necessary legal licenses and core engineering files to qualify. Why did Tesla stop making the Model S? Tesla ended production of the Model S and Model X in April to repurpose factory space. This space is being used to build the new high-volume Optimus robot assembly lines. SEO Meta Description: Tesla has begun Optimus robot production in Fremont, replacing the Model S and X lines. Learn about the production timeline and the Tesla Optimus release date. URL Slug: tesla-optimus-production-fremont-model-s-x-discontinued

Kenji Arai·18:00 27.10.2026

China & Taiwan

China Purges Top Military Leaders Over Corruption and Disloyalty

China expelled two of its highest-ranking military leaders from the Communist Party on September 21, 2026, following investigations into corruption and disloyalty. This move signals a deepening purge within the People's Liberation Army as President Xi Jinping intensifies his long-running anti-corruption campaign. Al Jazeera reported on Monday that General Zhang Youxia and General Liu Zhenli were expelled for violating political discipline. Rediff stated that General Zhang Youxia was the highest-ranking uniformed officer in the Chinese military. According to Al Jazeera , the investigations into both men began in January 2026. Who are the generals being expelled? The expelled officials are General Zhang Youxia, 75, and General Liu Zhenli, 61. Both men held top positions within the Central Military Commission, the supreme command body of the Chinese military headed by President Xi Jinping. General Zhang Youxia served as the first-ranking vice chairman of the seven-member Central Military Commission. This role made him the highest-ranking uniformed officer in the country. He was also a member of the 24-member politburo, which serves as the center of power for the Communist Party. Rediff noted that Zhang was a high-profile figure who had been long seen as a close military ally to Xi Jinping. General Liu Zhenli was a member of the Central Military Commission and served as the chief of staff of the Joint Staff Department. Both generals were notable for their military backgrounds. Rediff reported that Zhang and Liu were decorated war heroes who were the only two members of the Central Military Commission with combat experience, having both participated in People's Liberation Army campaigns against Vietnam in the late 1970s. Why were these officers removed? The officials were removed for serious violations of party discipline, corruption, and political disloyalty. The state-run Xinhua news agency cited official documents stating the generals formed cliques and factions and were dishonest to the party. Specific details regarding the alleged crimes were not provided by official sources. However, Rediff noted that Zhang was formally detained by military corruption investigators in January 2026. He faced accusations of corruption and failing to control the actions of his close associates, family members, and relatives. The South China Morning Post reported that Zhang was also blamed for failing to report problems to the party leadership immediately. These findings led to a meeting of the political bureau of the Communist Party central committee on Monday, which approved the reports regarding the handling of the cases of Zhang and Liu. How does this fit into the broader crackdown? These expulsions are part of a massive anti-corruption campaign led by Xi Jinping that began in 2012. The campaign targets both "tigers and flies," referring to high-ranking and low-ranking officials respectively. The military has become a primary target of these purges. Al Jazeera reported that the military has seen an increasing number of targets, leaving only two active members on the formerly seven-member Central Military Commission, including Xi Jinping himself. This includes the dismissal of the second-highest-ranking general and eight other senior officials from the military and party. Previous high-profile removals include the former Defence Minister, Li Shangfu, and his predecessor, who were both expelled in June 2024. The current wave of removals shows that even the most decorated and senior officers are not immune to the ongoing scrutiny of the central leadership. How do the different reports describe the charges? While both sources agree on the expulsion of the two generals, they emphasize different aspects of the misconduct. The official reasons focus on political discipline and the structure of the military command. Al Jazeera quoted the Xinhua news agency stating that the generals "seriously violated political discipline and political rules, formed cliques and factions, and were disloyal and dishonest to the party." This phrasing highlights a breakdown in the political unity required by the Communist Party. Rediff focused on the legal and disciplinary violations, stating the expulsion was due to "serious discipline and law violations." While the core of the accusations involves corruption, the political dimension of "forming cliques" is a central theme in the official state reporting. What is the background of the anti-graft campaign? President Xi Jinping initiated this extensive anti-graft campaign when he took power in 2012. It has since become one of the largest purges in modern Chinese history. The campaign has resulted in thousands of officials being purged and millions of individuals within the Chinese bureaucracy being investigated. The scale of the investigation is unprecedented. The campaign has moved from general bureaucracy into the upper echelons of the People's Liberation Army, targeting top command structures. The timing of these military removals is notable. Al Jazeera reported that the Defence Ministry announcement came just days before Xi Jinping is scheduled to meet with US President Donald Trump in Washington. It also occurs weeks before a key Communist Party assembly focused on internal governance. What happens next? The immediate aftermath involves the formal removal of Zhang and Liu from all party and military roles. The leadership will likely continue to fill the vacancies left in the Central Military Commission. The upcoming Communist Party assembly on internal governance will be a critical moment for observing how the party handles the resulting leadership vacuum. Additionally, the scheduled meeting between President Xi Jinping and US President Donald Trump in Washington will take place in the coming days. The military must now reorganize its command structure. With only two active members remaining on the seven-member Central Military Commission, the process of appointing new, vetted officials will be a priority for the central government. FAQ Who are the two generals expelled from the Chinese Communist Party? The expelled officials are General Zhang Youxia, the highest-ranking uniformed officer in the military, and General Liu Zhenli, the chief of staff of the Joint Staff Department. What were the reasons for their expulsion? The generals were accused of corruption, violating political discipline, and forming cliques or factions that were disloyal to the party. When did the investigations into these generals begin? Investigations into both General Zhang and General Liu were officially announced in January 2026. SEO Meta Description: China expels top generals Zhang Youxia and Liu Zhenli from the Communist Party amid a deepening anti-corruption purge led by President Xi Jinping. URL Slug: china-expels-generals-zhang-youxia-liu-zhenli-corruption-purge

Elena Marsh·07:00 30.10.2026