Tech
China Leads Global Robotics Market as Europe Struggles to Keep Pace
Chinese firms are dominating the global robotics market, with humanoid robots taking center stage at the Chinese New Year celebrations in Hangzhou earlier this year. Germany’s Chancellor Friedrich Merz witnessed a live display of robots dancing, performing backflips, and boxing during his visit in February. On his return, Merz remarked that Germany was “simply no longer productive enough,” highlighting concerns about Europe’s competitiveness in robotics.
Hangzhou-based Unitree has emerged as a leading innovator, with China accounting for 87 percent of all humanoid robots delivered in 2025. While Unitree shipped more than 4,000 units, it remains behind Agibot, which sold over 5,000 units, according to Forbes. Despite relatively modest sales—just over 13,000 robots worldwide last year—investors continue to pour capital into the sector. Barclays research in January 2026 estimated that the global humanoid robotics market, currently valued at $2–3 billion, could reach $200 billion by 2035.
European startups face significant challenges in competing with their Chinese and American counterparts. Rodion Shishkov, founder of London-based construction technology firm All3, said European companies have far less access to capital. “Here in Europe I have to fight—literally, fight—for tens of millions of euros of investment, while a similarly-positioned company in the United States can obtain billions,” he said. Shishkov noted that functional non-humanoid robots, like those his company develops for construction, often receive less attention and funding than flashy humanoid models, despite being more practical in many applications.
Andrei Danescu, CEO of autonomous robotics and AI logistics startup Dexory, warned that Merz’s trip to China risked framing robotics competition as a “beauty contest,” focused on humanoid appearance rather than solving real-world problems. Danescu pointed to collaborative arms on factory floors, autonomous logistics vehicles in warehouses, and surgical assistants as examples of robots already transforming industries in Europe.
China’s sustained investment spans hardware, software, manufacturing integration, and full supply chains, making it difficult for other regions to catch up. Danescu called on European regulators to accelerate policies, clarify liability frameworks, and provide public funding to support strategic growth. “The AI Act is a start, but robotics needs its own focused attention—policy, funding, strategy,” he said.
Safety remains a major hurdle for integrating robots into existing workflows. Sam Baker, a former industrial robotics engineer turned venture investor, said there is a lack of clear standards for deploying robots alongside humans in construction and manufacturing. Some companies, such as BMW, are experimenting with humanoid robots in production lines in Leipzig, Germany, to explore their potential without committing fully to large-scale deployment.
Baker said Europe cannot achieve full independence from Chinese hardware supply chains, but sees opportunities in software, intelligence, and experimentation. “It is an excellent time to build a robotics business in Europe. There’s a lot of white space to be filled on the intelligence and data side,” he said, highlighting the scope for innovation despite hardware constraints.
Tech
Robotics Firm Says AI-Powered Humanoid Robots Could Carry Weapons by 2027
A U.S. robotics company developing artificial intelligence-powered humanoid robots says weaponised versions of the technology could begin testing as early as next year, following field trials in Ukraine, raising fresh questions about the future of autonomous systems in modern warfare.
Foundation Future Industries, which builds humanoid robots for commercial and military applications, has already tested its Phantom robots in Ukraine in non-combat roles. Chief Executive Officer Sankaet Pathak said the company expects to explore weaponisation after evaluating the results of those pilot programs.
Pathak said public fears are often shaped by science fiction but argued that humanoid robots would not replace existing weapons such as missiles or drones.
“I think we have this psychological reaction, which is like the Terminator, but the reality is not really like that,” he said.
Instead, he believes humanoid robots could be deployed for highly precise military operations where limiting damage to infrastructure and reducing civilian casualties are priorities.
According to Pathak, drones and conventional weapons remain more effective for large-scale attacks, while humanoid robots would be better suited to complex ground missions requiring careful movement through buildings and urban environments.
He added that robots are unlikely to replace drones on the battlefield but could help reduce risks faced by soldiers in increasingly dangerous combat zones.
Currently, there is no international treaty specifically regulating humanoid or autonomous combat robots. Their use falls under existing international humanitarian law, which requires distinction between military targets and civilians during armed conflict.
The issue has drawn increasing attention from the United Nations. Last week, UN Secretary-General António Guterres renewed calls for restrictions on lethal autonomous weapons systems, describing them as “killer robots” capable of selecting and attacking targets without human judgment. The UN has been negotiating a treaty on lethal autonomous weapons since 2023, with proposals calling for a legally binding agreement by 2026.
Pathak argued that humanoid robots should be treated similarly to other precision-guided military systems already in service, including armed drones and unmanned ground vehicles.
Foundation’s robots rely on artificial intelligence built around so-called world models. Unlike large language models that predict text, these systems learn from video, simulations and spatial information to understand physical environments and predict how objects and people move over time.
The company believes these models are essential for creating robots capable of safely navigating complex surroundings.
While concerns persist about advanced AI becoming uncontrollable, Pathak said the greater short-term threat comes from criminals or extremist groups misusing publicly available AI tools for cyberattacks, disinformation campaigns or modifying commercial drones for attacks.
He believes scenarios involving AI independently rewriting its own objectives and improving itself remain several major technological breakthroughs away.
Beyond combat, Foundation sees immediate military uses for its humanoid robots in logistics, reconnaissance and building inspections. Those capabilities have already been evaluated in Ukraine, helping shape the development of the company’s next-generation Phantom 2 robot.
The upgraded model is designed for harsh outdoor conditions, offering waterproof and dustproof protection, an increased payload capacity of around 80 kilograms and greater resistance to impacts.
Foundation currently leases Phantom robots to commercial customers for about $100,000 annually per unit, while military buyers purchase the machines at similar prices. Its investors include Eric Trump, payment company Stripe and venture capital firm Define.
Tech
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