The Humanoid Arms Race Series: Part 2

Global Competition and Elon Musk's Vision

Last week, we analyzed China's assertive leap into humanoid robotics, establishing its leadership through state-driven strategies and robust industrial ecosystems. In this next installment of our five-part series, The Humanoid Arms Race, we shift our focus to the global competition unfolding around humanoid robotics, highlighting the pivotal role of visionary entrepreneur Elon Musk. Musk's ambitions with Tesla's Optimus project exemplify America's challenge to China's ascendancy, emphasizing mass production and innovative integration of artificial intelligence.

This chapter in our series examines Musk's strategic positioning within a broader international contest, comparing diverse approaches from American, European, and Israeli competitors. We explore how the distinctive competitive advantages, technological philosophies, and manufacturing capabilities of each region contribute to an increasingly fierce global race, reshaping not just commercial markets but potentially altering the strategic power balances of nations.

While China accelerates its humanoid robotics development, a global race is unfolding across multiple continents, with American innovator Elon Musk positioning himself as a central figure in this technological contest. The international landscape reveals diverse approaches to humanoid development, with each nation leveraging distinct competitive advantages.

Tesla’s Optimus: Scaling Up America’s Bid

Tesla's Optimus project represents America's most ambitious entry into the humanoid robotics arena. Under Musk's characteristically audacious vision, Tesla aims to produce between 3,000 and 5,000 humanoid robots in 2025—a production target that directly matches Chinese competitor Agibot's goals.

Jonathan Chen, manager of Tesla's Optimus Engineering, emphasizes that manufacturing capabilities will ultimately determine the winner in this technological race: "You create the robots, the question is who's going to scale them?"

Reinforcing this ambition, Musk recently shared an even bolder outlook during a publicly livestreamed, all-hands meeting at Tesla:

“My prediction is … that Optimus will be the biggest product of all time by far, nothing will even be close. I think it’ll be 10 times bigger than the next biggest product ever made.”

The 90-minute session also touched on Tesla’s upcoming developments, with Musk expressing strong confidence in the future of both self-driving technology and the Optimus project.

He further elaborated on Tesla’s strategic edge in humanoid robotics, positioning the company as uniquely capable of commercializing the technology at scale. “In a very short time, Optimus has gone from being an idea to the most sophisticated humanoid robot on earth,” he stated. He also emphasized what sets Tesla apart from competitors, 

“Tesla has some important ingredients that others don’t have, which is, our robot has a real brain. Tesla is the leader in real-world AI. What we learned in the car, we translate to the Optimus robot. And we also take our expertise in electric motors, batteries, power, electronics, structural design, and then another major thing is that we’re very good at manufacturing.”

To showcase just how far Optimus has come, Elon Musk shared a new video of Tesla’s humanoid robot in action—highlighting its refined movement and rapid development. Watch below as Optimus demonstrates its latest progress.

During the month of May, Saudi-U.S. Investment Forum in Riyadh, Elon Musk unveiled Tesla’s Optimus humanoid robots in a lively demonstration for Crown Prince Mohammed bin Salman and President Donald Trump. The robots performed a choreographed routine, including a “Trump dance” to YMCA, showcasing their enhanced agility and drawing praise from both leaders. The display marked a key moment in Saudi Arabia’s push to position itself as a global AI and tech investment hub, capturing the attention of international business and tech elites.

Industry experts have begun weighing in on Musk’s aggressive vision and Tesla’s role in shaping the humanoid robotics sector. Dr. Rodney Brooks, robotics pioneer and former MIT professor, observes that

"Musk's approach to humanoid robotics mirrors his strategy with electric vehicles—starting with premium positioning while driving toward mass-market scale. The difference is that humanoid robots represent a far more complex integration challenge than automobiles."

Musk's ambitions for Optimus extend beyond terrestrial applications to his interplanetary objectives. The Tesla CEO has repeatedly stated his intention to eventually deploy humanoid robots on Mars as part of his broader vision for multiplanetary human expansion. This long-horizon perspective distinguishes Tesla's approach from competitors focused primarily on immediate commercial applications.

Nvidia CEO Jensen Huang echoed similar themes during his COMPUTEX 2025 keynote, arguing that humanoid robots may be the only universal format capable of achieving technological and economic scale. He explains why mass production is critical to unlocking progress in the field:

Boston Dynamics and the U.S. Robotics Legacy

America's robotics legacy extends well beyond Tesla. Massachusetts-based Boston Dynamics, now owned by South Korean automotive giant Hyundai, pioneered agile legged robots through decades of research initially funded by U.S. military grants. The company's evolution from a research-focused organization to a commercial entity under Asian ownership reflects the complex global nature of robotics development, where technological innovation and manufacturing expertise often cross national boundaries.

To show how legacy players are evolving, Boston Dynamics recently shared a video of its Spot robots in action—demonstrating real-world industrial applications at enterprise scale. Watch below:

Apptronik, a rising American robotics firm based in Austin, Texas, is quickly gaining momentum after closing its Series A funding round, backed by major tech players including Nvidia and Google. Led by CEO Jeff Cardenas, the company is developing its Apollo humanoid robot as part of a broader push to position the U.S. at the forefront of the robotics race. Cardenas maintains that the United States holds key strategic advantages in the global competition:

"I think the US has a great chance of winning. We're leading in AI, and I think we're building some of the best robots in the world. But we need a national strategy if we're going to continue to build and stay ahead."

Europe’s Collaborative and Ethical Approach

Europe maintains a significant presence in industrial robotics through companies like Denmark's Universal Robots, which established early leadership in collaborative robot arms. However, European efforts in humanoid robotics have been more fragmented, with research primarily concentrated in academic institutions rather than commercial ventures.

Dr. Cécile Huet, Deputy Head of the European Commission's Robotics and AI Unit, notes that 

"Europe's strength lies in our regulatory framework and ethical approach to AI and robotics. While we may not match China's manufacturing scale or America's venture capital, our focus on human-centered robotics design may prove advantageous as these technologies integrate into society."

Israel’s Defense Tech Fuels Robotics Innovation

Israel has emerged as a surprising contender in the robotics ecosystem, leveraging its strengths in computer vision, sensor technology, and military applications. The country's expertise in autonomous systems, developed through defense applications, is increasingly being applied to humanoid development through startups receiving both domestic and international investment.

The technological approaches across regions reveal distinctive philosophies. Chinese robotics companies lead by startups, Unitree and Agibot emphasize practical applications and manufacturing scale, while American firms tend to pursue more ambitious technological leaps. European developers focus on human-robot interaction and safety, while Israeli innovations often center on sensing and navigation capabilities.

Professor Hiroshi Ishiguro of Osaka University, a leading Japanese robotics expert, observes that 

"the current humanoid race differs fundamentally from previous automation waves. Success requires the integration of mechanical engineering, artificial intelligence, materials science, and human-computer interaction. No single country excels in all these domains, which makes international collaboration inevitable despite geopolitical competition."

Mass Production and the Real-World Deployment Challenge

The race for mass production represents perhaps the most critical battleground. While prototype demonstrations generate headlines, the ability to manufacture thousands of complex humanoid robots at acceptable cost points will ultimately determine market leadership. Here, China's manufacturing ecosystem provides significant advantages, though Tesla's experience with high-volume production of complex electromechanical systems should not be underestimated. This marks a new era of hyper competitive technological breakthroughs across the globe in this field.

Dr. Melonee Wise, robotics industry veteran and CEO of Fetch Robotics, cautions against focusing exclusively on production numbers: "The metrics that matter aren't just how many robots you can produce, but how many can be deployed successfully in real-world environments creating actual value. The gap between demonstration and deployment remains substantial."

As the global competition intensifies, the integration of artificial intelligence—particularly large language models—with physical robotics capabilities is emerging as the crucial differentiator. The company that best combines mechanical reliability, manufacturing scale, and artificial intelligence may ultimately claim leadership in what promises to be one of the most consequential technological races of the 21st century.

As national strategies unfold, it's the companies building real machines that are setting the pace. In Part 3, we spotlight the key players—from China’s Agibot, Unitree, and UBTech to America’s Apptronik—examining how their product strategies, funding deals, and factory scale are redefining the front lines of the humanoid robotics race.