# Physical AI

CES 2026: The Year Physical AI Left the Screen — China’s Hardware Push and the End of Demo Theatre

CES 2026 moved the narrative from flashy demos to physical, embodied AI and underscored China’s shift from exporter to global supplier of AI hardware. Investors returned with cautious optimism: the technology is making measurable progress, but crowded categories and deployment challenges demand clearer paths to revenue and regulatory compliance.