U.S. automakers' presence at the Consumer Electronics Show (CES) in Las Vegas has diminished, giving rise to increased visibility for autonomous vehicle technology companies and a surge in what Nvidia CEO Jensen Huang terms "physical AI." The shift, observed at CES 2026, highlights the growing trend of integrating artificial intelligence into physical systems, moving beyond purely digital applications.

The void left by traditional U.S. automakers at the Las Vegas Convention Center was filled by companies such as Zoox, Tensor Auto, Tier IV, and Waymo, which rebranded its Zeekr RT. Chinese automakers, including Geely and GWM, along with software and automotive chip companies, also had a significant presence. Huang's "physical AI," sometimes referred to as embodied AI, describes the deployment of AI in real-world, physics-based environments.

Physical AI combines AI models with sensors, cameras, and motorized controls, enabling devices like humanoid robots, drones, autonomous forklifts, and robotaxis to perceive and interpret their surroundings, and subsequently make decisions. This technology allows machines to interact with the physical world in a more intelligent and adaptive manner. The increasing prevalence of physical AI at CES signals a significant shift in the automotive and technology industries, with AI becoming more deeply integrated into physical systems and transportation solutions.