Hyundai pours $6.2 billion into physical AI as automakers race to become robotics companies

Hyundai Motor Group’s Executive Chair Euisun Chung traveled to NVIDIA’s headquarters in Santa Clara on July 24 to formalize what the companies are calling a “Physical AI Alliance,” a partnership aimed at merging autonomous driving, humanoid robotics, and AI-powered manufacturing under one strategic umbrella. The centerpiece of the discussion: the Saemangeum project, an innovation hub estimated at 9 trillion won, roughly $6.2 billion. The project aims to integrate various AI solutions across Hyundai’s operations, functioning as both a research center and a proving ground for technologies before they reach production lines. What Hyundai is actually building Hyundai laid out this strategic direction during a two-day presentation on January 4-5, 2026, which emphasized what the company called “AI internalization” and ecosystem collaboration. The meeting between Chung and NVIDIA CEO Jensen Huang covered three core pillars: autonomous driving, robotics, and manufacturing AI. Hyundai has been building capabilities since at least CES 2022, when it showed off robotic dogs and mobility concepts. Why automakers are pivoting hard toward AI robotics The January 2026 vision presentation stressed ...