Hyundai pivots to Physical AI, aiming for city-level intelligence
Hyundai Motor Group Executive Chair Euisun Chung unveiled a sweeping strategy at the San Francisco AI Summit to transition the automotive giant into a dedicated Physical AI solution company, aiming to integrate robotic intelligence across manufacturing, urban infrastructure, and autonomous transport through a new, data-driven industrial ecosystem.
The company plans to move beyond traditional vehicle production by deploying a data flywheel that connects real-world operational insights with continuous AI model advancement. By leveraging its robotics division, Boston Dynamics, and deep collaborations with tech leaders like NVIDIA, Waymo, and Google DeepMind, Hyundai intends to create an open platform for innovation. This shift focuses on building intelligent spaces—specifically AI-driven factories—that eventually scale into city-level systems where energy, mobility, and robotics operate in real-time harmony.
Central to this roadmap is a commitment to fostering Korea’s domestic technology sector. The group is developing a Robot Reference Platform to provide startups and universities with standardized research tools, while pouring significant capital into regional infrastructure. This includes a 9 trillion KRW investment in the Saemangeum AI Valley and a broader 42 trillion KRW commitment to the Yeongnam region, intended to establish advanced hubs for robotics manufacturing and sustainable energy. By 2028, the company expects to reach a production capacity of 30,000 humanoid robots annually, signaling a move to integrate machines like the Atlas robot directly into its global production lines.
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