U.S. automakers' presence at the Consumer Electronics Show (CES) in Las Vegas has diminished, with autonomous vehicle technology companies and Chinese automakers filling the void, according to TechCrunch Mobility. The shift highlights the increasing importance of "physical AI," a term popularized by Nvidia CEO Jensen Huang, which refers to the application of artificial intelligence in the physical world.

Physical AI, also known as embodied AI, combines AI models with sensors, cameras, and motorized controls to enable devices like humanoid robots, drones, autonomous forklifts, and robotaxis to perceive and interact with their surroundings. These technologies were prominently featured at CES 2026, with companies like Zoox, Tensor Auto, Tier IV, and Waymo showcasing their latest advancements. Waymo, for example, rebranded its Zeekr RT robotaxi.

The rise of physical AI reflects a broader trend of integrating AI into transportation and other industries. Autonomous vehicle technology companies are developing systems that can navigate complex environments and make real-time decisions. Chinese automakers, including Geely and GWM, are investing heavily in electric vehicles and autonomous driving features. Software and automotive chip companies are providing the underlying technology that powers these systems.

TechCrunch Mobility reported that the increasing presence of these companies signals a significant shift in the automotive industry, with U.S. automakers ceding ground to companies focused on autonomous vehicle technology and AI-driven solutions. The newsletter, which covers the future of transportation, noted that CES has become a showcase for these emerging technologies.