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It’s been a while! As you might have noticed, the newsletter took a short break, but now we’re diving into 2026, and there’s plenty to catch up on since our last edition.
I spent the first week of the year at the Consumer Electronics Show (CES) in Las Vegas. While I touched on this last January, it bears repeating: U.S. automakers are noticeably absent from the scene.
So, what took their place at the Las Vegas Convention Center? Companies focused on autonomous vehicle technology (like Zoox, Tensor Auto, Tier IV, and Waymo, which recently rebranded its Zeekr RT), as well as Chinese manufacturers like Geely and GWM. Also present were software and automotive chip companies, along with what Nvidia CEO Jensen Huang refers to as “physical AI.”
This term, also known as “embodied AI,” refers to using AI in real-world physical scenarios. By combining AI models with sensors, cameras, and motor control, technologies like humanoid robots, drones, autonomous forklifts, and robotaxis can interpret their environment and make operational decisions. You could see this tech applied everywhere from agriculture and robotics to manufacturing and wearables.
Hyundai had one of the most eye-catching displays, drawing a near-constant line at its entrance. Surprisingly, they showcased robots instead of cars—among them was the Atlas humanoid robot from Boston Dynamics. Innovations from Hyundai Motor Group Robotics LAB included a robot that charges electric autonomous vehicles and a four-wheeled electric platform called the Mobile Eccentric Droid (MobEd), which is set to go into production this year. The trend of showcasing humanoid robotics was evident across the board.
The buzz around humanoids and physical AI was hard to miss. I spoke with Mobileye co-founder and president Amnon Shashua about this, especially considering his company just acquired a humanoid robotics startup for $900 million. I asked him what he thought when people say humanoid robots are just hype.
“The internet was also a hype, remember the 2000 internet crisis,” Shashua replied. “It didn’t mean that the internet isn’t real. Hype often means companies are overvalued for a time, and then they crash. But that doesn’t negate the validity of the field. I believe the humanoid domain is legitimate.”
A few noteworthy stories from CES include Nvidia launching Alpamayo, which features open AI models that enable autonomous vehicles to ‘think like humans,’ and Uber’s latest robotaxi developed in partnership with Lucid and Nuro.
Now, shifting to more recent news beyond CES…
At a meeting with the Detroit Economic Club, President Trump made remarks about welcoming Chinese automakers to the U.S., which didn’t sit well with many industry insiders. According to sources I spoke with, the Alliance for Automotive Innovation, the industry’s lobbying group, is understandably concerned.
“If they want to come in and build a plant and hire you and your friends and neighbors, that’s great, I love that,” Trump stated, as reported by attendees. “Let China come in, let Japan come in.”
However, it’s worth noting that many Japanese companies, like Toyota, are already well-established in the U.S. The greater challenge, apart from concerns from U.S. automakers, is existing regulations. In 2025, the U.S. Department of Commerce’s Bureau of Industry and Security enacted a rule restricting the import and sale of certain connected vehicles, software, and hardware associated with China or Russia, essentially banning the sale of Chinese cars here.
Avery Ash, the CEO of SAFE, a nonpartisan organization focused on U.S. energy and supply chain security, voiced the risks associated with allowing Chinese automakers into the U.S. His comments echoed sentiments from my podcast, the Autonocast.
“Welcoming Chinese automakers to build cars here will reverse these hard-won achievements and endanger Americans,” Ash said. “We’ve seen this strategy backfire in Europe and elsewhere; it could profoundly impact our auto industry, disrupt our entire defense industrial base, and make Americans less safe.”
On the other hand, Canada is rolling out the welcome mat for Chinese automakers. Prime Minister Mark Carney recently announced that Canada will significantly reduce its import tax on Chinese EVs from 100% to just 6.1%.
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Deals:
Budget airline Allegiant has agreed to acquire rival Sun Country Airlines for approximately $1.5 billion in cash and stock.
Software company Dealerware, which provides services to automotive manufacturers and retailers, was acquired by a group led by investors Wavecrest Growth Partners and Radian Capital. Automotive Ventures and industry executives David Metter and Devin Daly also participated in the deal. Terms of the agreement were not disclosed.
Long-distance travel company Flix has acquired a majority stake in European airport transfer platform Flibco, while Luxembourg-based SLG will maintain some ownership. Financial terms were not revealed.
JetZero, a startup from Long Beach, California, that’s developing a fuel-efficient midsized triangular aircraft, has raised $175 million in a Series B round led by B Capital, as reported by Bloomberg.
Joby Aviation, known for its electric air taxis, has finalized a deal to purchase a 700,000-square-foot manufacturing facility in Dayton, Ohio, to help achieve its goal of doubling production to four aircraft per month by 2027.
Luminar has agreed to sell its lidar business to Quantum Computing Inc. for just $22 million, which seems low given Luminar’s market valuation peaked at $11 billion in 2021.
Notable Reads and Other Tidbits:
Bluspark Global, a shipping and supply chain software company based in New York, was unaware that its platform had vulnerabilities open to the public internet. Here’s how a security researcher (and TechCrunch) helped fix it.
The Federal Trade Commission has finalized an order prohibiting General Motors and its OnStar telematics service from sharing specific consumer data with reporting agencies. Read more about the implications.
InDrive, which originally started as a ride-hailing service allowing users to set prices, is diversifying its approach and moving forward with its “super app” strategy. This means more in-app advertising across its top 20 markets and the expansion of grocery delivery services to Pakistan.
Motional, the majority Hyundai-owned autonomous vehicle company, has restarted operations. After a pause last year, its future seemed uncertain, like many AV firms facing sudden funding shortages. However, Motional is back with a new AI-focused approach, and I’ve covered my demo ride and an interview with CEO Laura Major in my latest article.
New York Governor Kathy Hochul is planning to introduce legislation to effectively legalize robotaxis in the state, excluding New York City. Details are scarce, but reports indicate it will be part of her upcoming executive budget proposal. The aim is to broaden the existing AV pilot program, allowing for limited deployment of commercial autonomous passenger vehicles outside NYC.
Lastly, Tesla is moving away from a one-time fee model for its Full Self-driving (Supervised) software and will instead offer access via a monthly subscription.
On-demand drone delivery service Wing is expanding its reach, launching its service in an additional 150 Walmart stores as part of a broader partnership with the retailer.
