Thursday, January 1, 2026

Shay: Five Companies Best Positioned For The Physical AI Economy In 2026 -- Shay Boloor --January 1, 2025

Locator49778TECH.

Six months ago I was ignoring robots and drones. 

Link here

AI Prompt: six months ago I was skeptical of robots and drones. Now, I'm a believer. With regard to robots, I would think it's hard to compare robot manufacturers. There are so many different kinds of robots, some very simple, some very complex. I think some folk still argue about the definition of a "robot." With all those caveats in place, which company is most advanced when it comes to -- not robots per se -- but the USE / EMPLOYMENT of robots in their core business. Which company is making the best use of robots; will that lead endure? Thoughts on robots in general? 

The short answer:

  • Amazon is the clear global leader in the use of robots as an integrated business system.
  • Tesla is the most ambitious second, but with higher execution risk.
  • Foxconn is the most underappreciated.
  • Ocado is the most elegant niche example.

Yes, Amazon's lead is likely to endure, though not unchallenged

This is most interesting: robots work best when the product is designed for robots -- I would re-phrase that, robots work best when the product is designed with robots in mind. Amazo has this figured out. Tesla, not so much.  

Those excelling in the robotic arena:

  • Amazon: the gold standard for robot employment.
  • Tesla: the boldest bet on robot-native manufacturing --
    • extreme automation in 
      • gigafactories
      • battery production
      • body-in-white.
    • but Tesla robotics has its weaknesses
  • Fox onn: the quite industrial robot superpower
    • operates some of the most robot-dense factories on earth
    • Foxconn's robots are not flashy; they are relentlessly pragmatic
      • that mindset scales.
  • Ocado: the most beautiful example of robotic coordination
    • Ocado: UK grocery fulfillment)Ocado shows what happens when robots are designed as a collective system, not individuals. 
    • their weakness: scale and capital intensity
    • something for BRK to think about?
  • Others worth mentioning (briefly):
    • JD.com
    • Toyota
    • Walmart

A crucial distinction most people miss:

  • there are three different "robotics games":
    • robots as tools (most factories)
    • robots as systems (Amazon, Ocado)
    • robots as labor substitutes (humanoids, still early)

Most companies are stuck at #1.
The winners live at #2.
#3 is coming -- but slower than the hyper suggests.