How Unitree Robotics Could Become the Next Xiaomi in the High-Tech Ecosystem

In a world where technology is rapidly evolving, one Chinese startup, Unitree Robotics, has been making waves with its humanoid robots that recently performed a dance show during the latest CMG New Year’s Gala. An early investor in Unitree, Zhao Nan, founder of SevenUp Capital, believes that Unitree could become an ecosystem of high-tech products similar to what Xiaomi has achieved.

Unitree’s Vision: A High-Tech Ecosystem

“Unitree can become an ecosystem company like Xiaomi,” Zhao Nan told Yicai in an exclusive interview. Xiaomi has built a vast ecosystem that spans mobile phones, smart homes, and various other sectors. Similarly, Zhao believes that Unitree can leverage its portfolio of two-legged and four-legged robots to create its own ecosystem.

The name “Unitree” itself reflects the ambition of its founder, Wang Xingxing. “He [Wang] hopes that Unitree will become a world-class technology company, like a forest, rooted in core technology, connecting ecosystem partners, and ultimately growing into a global technology leader with a broad range of applications,” Zhao explained.

AI and the Future of Robotics

As artificial intelligence (AI) becomes more specialized and industry-specific, robots are following suit. Zhao predicted a future where vertical AI applications, developed by various enterprises, will continuously enhance robots’ ability to understand and respond to complex scenarios. “Perhaps in the future, Unitree will launch an AI operating system for robots. Based on this OS, more interfaces will become available to ecosystem companies,” Zhao added.

Hardware Prowess: The Backbone of Unitree

Zhao views Unitree’s key asset as its reliable hardware. “Unitree is a platform-level company with an ecosystem and collaborative cooperation capabilities. If you look at Unitree as a technological base, you will find its potential to be very high.”

Zhao recalls his first meeting with Wang Xingxing. “When Wang talks about technology and robots, his eyes light up. He deeply believes in technology and is very persistent in that belief. Meanwhile, Unitree’s product iteration is also very rapid.”

In 2020, SevenUp Capital led Unitree’s pre-A round of financing. At that time, Unitree was just three years old but had already released three robot dogs: Laikago, AlienGo, and Unitree A1. Some of the key factors that motivated Zhao to invest in Unitree were the startup’s self-developed core technology, its ability to independently develop and mass-produce non-standard components, and its progress in commercial validation.

Moreover, by that time, Unitree had already secured a significant number of self-developed patents. It also had small workshops for the development and production of non-standard parts. About 70 percent of Unitree’s customers were overseas laboratories and technology giants like Nvidia, Google, and Meta, who used its products for secondary development or AI training. Roughly one-fifth of the customers used the products in industrial scenarios, including security inspections. “These customers prove that Unitree is not a toy company,” Zhao said.

Commercial Success and Market Demand

Market demand for Unitree’s products has been strong. During the latest CES, company staff told Yicai that the global market share of Unitree’s four-legged robots has reached 60 to 70 percent.

Zhao mentioned that initially, Wang was not focused on making humanoid robots because the technology and commercialization were still immature. However, after OpenAI released ChatGPT in 2022, Wang changed his mind. Unitree launched its first humanoid robot project in February 2023, and about seven months later, the general-purpose human-like robot H1 was introduced.

Since 2020, Unitree has recorded annual profits. In a recent conversation with Wang, Zhao learned that the founder is not anticipating a new round of financing anytime soon. It is rare for a startup to break even so quickly. Zhao attributed Unitree’s cost advantage to China’s vast industrial supply chain and the startup’s self-reliance on research and development for core components.

In addition to reducing costs, in-house design also accelerates product improvements. Zhao gave an example of the advantage. Humanoid robots require high-torque-density joint motors and joint force sensors to perform complex actions such as somersaults. If these parts were to break during training, it would be costly and time-consuming to ask an upstream supplier to address the issue. However, Unitree can quickly resolve the problem in-house, the investor concluded.

Unitree’s Product Line and Innovations

Unitree Robotics has made a name for itself with a range of innovative products. The company started with the Laikago, a four-legged robot that was one of the first to be made available for commercial use. Following Laikago, Unitree introduced the AlienGo and Unitree A1, which further solidified its position in the robotics market.

However, the real game-changer came with the introduction of the H1 humanoid robot. The H1 is a general-purpose humanoid robot designed to perform a variety of tasks that require human-like dexterity and mobility. The H1 stands at about 1.8 meters tall and can walk, run, and even perform somersaults. It is equipped with advanced sensors and AI capabilities that allow it to navigate complex environments and interact with humans in a more natural way.

Founder Wang Xingxing: A Visionary Leader

Wang Xingxing, the founder of Unitree Robotics, is a visionary leader who has been passionate about robotics since his university days. He holds a degree in mechanical engineering and has always been fascinated by the potential of robots to transform industries and everyday life. His vision for Unitree is to make advanced robotics accessible and affordable for a wide range of applications.

Wang’s dedication to technology and his belief in the potential of robotics have been the driving forces behind Unitree’s success. His ability to foresee market trends and adapt quickly has allowed Unitree to stay ahead of the competition. For instance, the decision to pivot towards humanoid robots after the release of ChatGPT shows his strategic thinking and willingness to embrace new opportunities.

Investor Zhao Nan: A Key Supporter

Zhao Nan, the founder of SevenUp Capital, has been a key supporter of Unitree Robotics. His investment in the pre-A round of financing was a significant vote of confidence in Wang’s vision and Unitree’s potential. Zhao’s belief in Unitree’s ability to become a platform-level company with a robust ecosystem has been a driving force behind the company’s growth.

Zhao’s experience in the venture capital industry has also provided valuable insights and guidance for Unitree. His understanding of market dynamics and his ability to identify promising startups have made him a valuable partner for Unitree.

The Broader Context of the Robotics Industry

The robotics industry is experiencing a period of rapid growth and innovation. Advances in AI, machine learning, and sensor technology are making robots more capable and versatile. Companies like Boston Dynamics have been at the forefront of this revolution, but Unitree Robotics is quickly catching up.

One of the key trends in the robotics industry is the move towards more humanoid robots. These robots are designed to perform tasks that require human-like dexterity and mobility. They can be used in a variety of applications, from industrial automation to healthcare and customer service. Unitree’s H1 robot is a prime example of this trend.

Another important trend is the increasing use of robots in industrial settings. Unitree’s four-legged robots are already being used for security inspections and other industrial applications. As the technology continues to improve, we can expect to see even more widespread adoption of robots in various industries.

Conclusion

Unitree Robotics is well on its way to becoming a major player in the high-tech ecosystem. With a strong focus on self-developed core technology, a robust product line, and a visionary founder, the company has the potential to follow in the footsteps of Xiaomi and build a vast ecosystem of high-tech products. As AI continues to advance and the demand for robots grows, Unitree is poised to make a significant impact on the global stage.

Editors: Tang Shihua, Emmi Laine