Missed the AI rally? After bumper 600% market debut, Chinese robot maker Unitree's CEO still feels a software leap is years away

Chinese humanoid robot maker Unitree grabbed headlines after making a bumper stock market debut with a 600% premium over its IPO price in Shanghai, but its CEO feels that a major leap in humanoid robot software is still years away.

The shares of the company, which makes robots capable of running, dancing and performing martial arts, debuted at a whopping 600% premium over the issue price earlier this week in Shanghai, multiplying investors’ wealth. Its CEO said at an event that the industry is edging towards a "ChatGPT moment" for robot brains.

"We are marching towards a 'ChatGPT moment' in embodied intelligence," said Wang Xingxing, the Hangzhou-based company’s founder and CEO.


He was referring to the global AI boom that was sparked back in 2022 by OpenAI’s launch of ChatGPT, a watershed moment that drove mass adoption.

Tipping point for the robot industry

Speaking at the event in Beijing, Wang said the industry ⁠is nearing a breakthrough where robots can be put in unfamiliar environments and complete most tasks through simple voice or text instructions. “We hope that in the future, we can see a robot be introduced into an unfamiliar household, and it can achieve approximately 80% of tasks successfully through voice or text commands. It is an important tipping point for the robot industry to usher in explosive growth," he said.

However, Wang cautioned that a major leap in robot software could arrive within two to three years in a bullish scenario, or within five to 10 years at the latest. He noted that the company's biggest current investment in terms of capital and manpower is in world models and that it is "lagging behind" in the real-world application of physical ⁠AI models.

Unitree CEO also said that humanoids are not yet capable enough for mass deployment, highlighting limitations in the AI models that power robots' decision-making and interactions as the industry's biggest bottleneck. Notably, Unitree is the world's largest producer of robot dogs and the second-biggest maker of humanoid robots by shipments, according to industry data.

"Relative to the mood around the World Robot Conference and Unitree’s spectacular IPO, Wang Xingxing was notably sober about current capabilities," Reuters quoted Georg Stieler, head of automation at robotics consultancy Stieler, as saying.

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Should you invest in robot makers?

Nomura recently initiated coverage on Unitree Robotics with a ‘Buy’ call. Its investment thesis rests on two pillars: full-stack mechanical design and in-house hardware give Unitree a structural cost advantage that converts into mass-delivery capability, as outsourced components account for only 10-20% of total cost, and gross margin expanded from 44% in FY22 to 60% in FY25.

Secondly, the rapid product iteration and continuous innovation have repeatedly allowed Unitree to reach new application scenarios ahead of peers, giving it a first-mover advantage as fresh demand pockets emerge.

JP Morgan in a recent article highlighted that the global robotics market could grow 25x to $2.5 trillion in annual sales by 2035. This implies nearly 35% to 40% annual growth rate from $100 billion in annual sales in 2025.

“Today, the category consists mostly of industrial robots and small drones. Expectations, however, are for humanoid robots and autonomous vehicles to deliver the majority of value creation in the future,” it said, adding that analysts project sales of humanoids may reach roughly $300 billion by 2035, versus around $2 billion in 2025.

Meanwhile, the ongoing AI trade continues to go through sharp upswings and downswings. Since last year, global stock markets saw an increasing frenzy around AI, with hyperscalers hiking their investments in the technology. The increased optimism sparked a sharp rally in the AI stocks, before things began to go down. Analysts soon began sounding the alarm over the massive AI spending and rising debt of the tech giants, questioning if they will actually bear fruit in the future. The worries sparked a sharp selloff in the tech stocks, before they saw another sharp recovery recently.

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(With inputs from agencies)
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