Postcard from Unitree's World Physical AI Conference: Intelligence Ambitions

Morgan Stanley update on Yushu Technology (Unitree, 688836.SS) following its Physical AI Conference. Founder, Chairman and CTO Wang Xingxing's keynote outlined four priorities: large-scale manufacturing capability; in-house physical AI model R&D while collaborating with global frontier model developers; large-scale compute infrastructure; and expanding open-source datasets. He previewed Physical AI Self Evolution V1.0, in which the model autonomously writes code, trains in simulation and iterates through real-world testing, similar to recursive self-improvement used in LLM training. Wang envisions a "GPT moment" in 2027-28 when robots accomplish 80% of tasks in 80% of unfamiliar environments. However, reliable physical interaction, fine manipulation, error self-correction and latency remain key bottlenecks;