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Physical AI, which combines AI models with sensors and motorized controls to operate in real-world environments, dominated CES 2026 alongside autonomous vehicle companies and robotics demonstrations. U.S. automakers continue to skip the show while Chinese manufacturers and AV tech companies fill the void. Trump's comments about welcoming Chinese automakers sparked industry concern, though existing Commerce Department rules ban Chinese vehicle sales. Notable developments include Mobileye's $900M acquisition of humanoid robotics startup Mentee Robotics, New York's proposed legislation to legalize robotaxis outside NYC, and Motional's reboot with an AI-first approach. Canada slashed tariffs on Chinese EVs from 100% to 6.1%, while Tesla moved to subscription-only pricing for Full Self-Driving.

TechCrunch Mobility: ‘Physical AI’ enters the hype machine