Chinese robot makers depend on Nvidia silicon and software, while Nvidia's physical AI unit generates about $10 billion annually, insiders say.
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| Source: Techmeme | Original article
Chinese robot makers rely on Nvidia's silicon and software, as Nvidia's physical AI business pulls roughly $10 billion in annual revenue.
Chinese robot manufacturers are still leaning heavily on Nvidia’s hardware and software stack, industry insiders tell the Wall Street Journal. Companies such as Unitree have integrated Nvidia’s latest Thor chips into their platforms, and a Nvidia spokesperson emphasized that the firm “works with companies around the world consistent with U.S. laws.” The reliance comes as Nvidia’s “physical AI” segment – the part of the business that powers robotics, autonomous machines and other embodied AI – pulls in roughly $10 billion of annual revenue.
The dependence matters for several reasons. China now dominates the global humanoid‑robot market, accounting for more than 97 % of shipments in the first half of 2026, according to new industry data. That scale gives Chinese makers considerable leverage, yet their supply chain is tethered to U.S. silicon, exposing them to potential export controls or licensing restrictions. For Nvidia, the $10 billion figure underscores how quickly the company is monetising AI beyond data‑center GPUs, a trend we highlighted in our Aug 29 report on Nvidia’s expanding AI advantage beyond graphics processing.
Looking ahead, the next flashpoints will be policy and competition. U.S. regulators may tighten rules on advanced chips destined for Chinese robotics firms, while Chinese firms could accelerate development of domestic alternatives to Nvidia’s Thor and related software. Observers will also watch whether Nvidia’s physical‑AI revenue continues to climb and how the company balances growth with compliance in a geopolitically sensitive market.
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