As artificial intelligence moves beyond chatbots and data centers into the physical world, chip giant Nvidia is laying the groundwork for what could become the next major computing platform: humanoid robots.

The company has revealed plans to collaborate with robot manufacturers in the United States, Europe, and South Korea, expanding beyond its recently announced partnership with Chinese robotics firm Unitree Robotics. The initiative signals Nvidia’s determination to lead the emerging humanoid robotics industry, much as it has done in artificial intelligence infrastructure.

The announcement came following CEO Jensen Huang’s keynote address at the Computex technology exhibition in Taipei, where Nvidia unveiled a new research-focused humanoid robot platform built in partnership with Unitree.

The standardized robot is designed specifically for universities and research institutions, developing the next generation of AI-powered machines. Under the arrangement, Unitree will provide the robot body, Singapore-based robotics company Sharpa will supply the robotic hands, while Nvidia’s advanced computing systems will serve as the machine’s intelligence layer.

Researchers at institutions including Stanford University and the University of California, San Diego, are expected to use the platform to advance robotics research.

The initiative reflects Nvidia’s broader vision that the next wave of AI growth will come not only from software but from “physical AI” — intelligent machines capable of interacting with the real world. Huang has repeatedly argued that humanoid robots could become a multi-trillion-dollar market over the coming decades, transforming industries ranging from manufacturing and logistics to healthcare and elder care.

The company’s move comes as competition intensifies in the robotics sector. Technology companies worldwide are racing to develop machines capable of performing increasingly sophisticated tasks autonomously. Advances in large language models, computer vision, and reasoning systems have dramatically improved the capabilities of robots, bringing the prospect of commercially viable humanoid machines closer to reality.

Nvidia’s strategy mirrors the approach that helped it dominate the AI revolution. Rather than manufacturing complete robots itself, the company aims to become the foundational technology provider supplying the processors, software platforms, and development tools that power machines built by others.

The company has already developed robotics software frameworks and simulation platforms that allow developers to train robots in virtual environments before deploying them in the physical world. By integrating its latest Blackwell chips directly into humanoid robots, Nvidia hopes to create a standardized ecosystem for robotics researchers and manufacturers.

The partnership with Unitree, however, also comes with geopolitical impact. Unitree gained international attention earlier this year when its humanoid robots appeared prominently during China’s Spring Festival Gala, showcasing Beijing’s growing capabilities in advanced robotics. The company is currently pursuing a public listing in China as investor interest in robotics accelerates.

At the same time, Unitree has become the subject of scrutiny in Washington. Some U.S. lawmakers have alleged that the company maintains close ties to the Chinese government and military. Legislation has been introduced that would prohibit researchers receiving U.S. government funding from using Unitree robots.

Against that backdrop, Nvidia executives said the collaboration is partly aimed at addressing cybersecurity concerns that could hinder adoption among Western researchers. According to company officials, the robots will incorporate security architectures similar to those used in Nvidia’s data-center systems. Software updates intended for robot subsystems will pass through Nvidia’s chips, where they can be authenticated and verified before installation.

The system employs technologies such as secure boot and confidential computing, designed to prevent unauthorized software from running on the machines and to stop sensitive data from being transferred without approval.

As robots become more capable and increasingly connected to enterprise networks, concerns over cybersecurity, data protection, and national security are becoming just as important as mechanical performance.

But embedding security directly into robot hardware could provide a competitive advantage for Nvidia, especially as governments, universities, and corporations evaluate which platforms to adopt.

The company’s decision to pursue similar partnerships with manufacturers in the United States, Europe, and South Korea also suggests Nvidia is seeking to establish a globally diversified robotics ecosystem rather than relying on a single supplier or market.

While Nvidia executives declined to identify future partners, the expansion indicates the company sees humanoid robotics as a global industry likely to mirror the development of the AI server market, where demand is spreading rapidly across regions. The broader significance of the initiative lies in Nvidia’s effort to extend its dominance beyond data centers. The company already commands the AI chip market, supplies the processors powering many of the world’s largest AI models, and is expanding aggressively into CPUs, networking infrastructure, and AI software.

Humanoid robots represent the next frontier.

If AI agents become capable of performing complex physical tasks, the robots carrying out those functions will require enormous computing power, sophisticated software, and secure hardware architectures. Nvidia is getting ready to provide all three.

Much as the company became the backbone of the generative AI boom, it is now attempting to ensure that when intelligent machines move from screens into factories, warehouses, hospitals, and homes, they will be running on Nvidia technology.

The global smartphone industry is heading toward its sharpest annual contraction on record, as a severe shortage of memory chips, intensified by the ongoing U.S.-Iran conflict and the AI infrastructure race, disrupts production and threatens the economics of low-cost mobile devices.

According to Counterpoint Research, global smartphone shipments are now expected to fall 13.9% in 2026 to approximately 1.08 billion units, a steeper decline than the 12.4% contraction the firm projected earlier this year. If realized, the drop would mark one of the most significant setbacks for the industry since smartphones became a mainstream consumer technology.

The downturn highlights a growing consequence of the artificial intelligence boom. As semiconductor manufacturers redirect capacity toward higher-margin AI processors, memory chips, and other components essential for smartphones have become increasingly scarce. The imbalance is creating winners and losers across the technology sector, with AI infrastructure suppliers benefiting while consumer electronics makers face mounting pressure.

At the heart of the problem is a global memory chip shortage that industry analysts describe as the most severe supply-side disruption the smartphone market has encountered in years. Major cloud computing companies and AI developers are spending hundreds of billions of dollars on data centers, servers, and advanced AI systems, creating unprecedented demand for semiconductors.

That demand has encouraged chipmakers to prioritize AI-related products, which command significantly higher margins than components used in budget smartphones.

Counterpoint analyst Wang Yang said the impact is being felt most heavily in the low- and mid-tier segments of the market.

“Smartphone makers in the low and mid-tier are caught between cost increases they cannot absorb and consumers with limited spending power,” Wang said.

“The question is no longer how to grow shipments or market share, but whether to remain in the market at all.”

The pressure is already becoming visible in pricing. Global smartphone wholesale prices rose 14% during the first quarter, even as shipments fell 3.1% year-on-year. Analysts expect prices to continue climbing as manufacturers exhaust inventories accumulated before the latest supply crunch.

Some entry-level smartphones priced below $150 could disappear altogether, as rising component costs make such devices increasingly uneconomical to manufacture.

The development carries significant implications for emerging markets across Africa, Asia, and Latin America, where low-cost smartphones remain the primary gateway to digital services, mobile banking, e-commerce, and internet access. A sustained reduction in the availability of affordable devices could slow smartphone adoption rates in several high-growth regions.

The crisis also exposes a broader transformation occurring within the semiconductor industry. For decades, smartphones were among the most important drivers of chip demand. Today, AI servers and data centers are increasingly dictating investment decisions across the semiconductor supply chain.

Industry executives from companies including Nvidia, AMD, Intel, and Foxconn have repeatedly highlighted surging AI-related demand this year. Global cloud providers are projected to spend more than $700 billion on AI infrastructure in 2026, with some forecasts suggesting annual capital expenditure could approach $1 trillion in the coming years.

As a result, smartphone manufacturers are finding themselves in direct competition with some of the world’s largest technology companies for access to critical components.

While the broader market struggles, premium smartphone makers are proving more resilient.

Apple continues to benefit from strong demand among higher-income consumers willing to pay for flagship devices. The company reported record revenue during the first quarter, driven in part by upgrades to its iPhone 17 lineup.

Counterpoint expects Apple’s smartphone shipments to remain largely unchanged this year before returning to growth in 2027. Strong profit margins and relatively stable access to components place the company in a stronger position than many competitors.

Apple could also emerge from the downturn with increased market share as smaller rivals struggle to secure supply.

Samsung Electronics appears similarly well-positioned. Counterpoint forecasts only a 4% decline in Samsung shipments this year, significantly outperforming the broader market. The South Korean giant benefits from its extensive semiconductor operations, diversified supply chain, and strong presence across both premium and mid-range segments. Stable component availability has allowed Samsung to maintain production volumes even as competitors face mounting disruptions.

The outlook is far more challenging for brands focused on lower-priced devices.

Transsion Holdings, whose brands dominate several African markets and are heavily concentrated in smartphones priced below $150, is projected to experience a 32% decline in shipments this year.

Counterpoint also forecasts steep declines for Xiaomi and Honor, with shipments expected to fall 28% and 20%, respectively.

The diverging fortunes illustrate how the smartphone industry is increasingly splitting into two distinct markets. Premium brands with stronger pricing power, established ecosystems, and greater supply-chain influence are weathering the storm. Budget-focused manufacturers, meanwhile, face shrinking margins, rising costs, and growing uncertainty about future production capacity.

Beyond 2026, the industry’s trajectory may depend largely on whether memory chip supply improves and geopolitical tensions ease. If AI-related demand continues accelerating while semiconductor capacity remains constrained, the smartphone market could face a prolonged period of slower growth, higher prices, and deeper consolidation.