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What's Actually Holding Humanoid Robots Back Isn't the AI | Andrew Kang, RoboStrategy

Andrew Kang, CEO of RoboStrategy and an early investor in Figure AI, breaks down why he's betting humanoid robots become a tens-of-trillions-dollar market, and why robot intelligence gets good enough within 2 to 3 years while the robots themselves stay scarce. He also gets into what happens to the industry once the model layer commoditizes, and why so many people rushing into robotics right now are underestimating what it actually takes. *Timecode:* 00:00 Intro 01:15 The Bet: All in on Figure AI and the full-stack future 06:00 The Future: How far humanoids actually go 10:25 The Shift: Why Open Source wins 13:19 US vs China: Why it's not a race 15:33 Where to build now: The white space of robotics EO is a global media brand for builders. We tell the defining stories of founders shaping the future: people who see what others don’t and build what they believe in. Subscribe to EO: https://www.youtube.com/@eoglobal EO Magazine: https://www.eomag.io Instagram: https://www.instagram.com/eostudio.official/ X: https://x.com/eostudi0 LinkedIn: https://www.linkedin.com/company/eo-studio EO Studio: https://eo.team/ Business inquiries: partner@eoeoeo.net Build what you believe in.

Jul 29, 202621mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Humanoid robots hinge on manufacturing, data, and open-source commoditization ahead

  1. Kang argues humanoid robot intelligence may reach “good enough” for many tasks within 2–3 years, but real-world impact will be gated by slow, capital-intensive manufacturing and supply-chain scale-up.
  2. He explains why full-stack, vertically integrated companies (hardware + model training + deployments + manufacturing) are advantaged because embodiment-specific data and co-optimization between hardware and learning systems drive faster performance gains.
  3. He projects a multi-trillion-dollar humanoid market by pricing robots against annual human labor costs and highlighting demand expansion when labor becomes cheaper and more abundant.
  4. He predicts open-source models will compress the gap with frontier systems and eventually commoditize much of the “model layer,” shifting durable value toward deployments, hardware innovation, and production capacity.
  5. He rejects a simplistic “US vs China race” framing, expecting both ecosystems to mature largely domestically with shared benefit from open research, while noting China’s platform-first hardware distribution strategy as a notable differentiator.

IDEAS WORTH REMEMBERING

5 ideas

Humanoid capability is becoming real, not just curated demos.

He cites Figure’s long-running livestream as evidence of robustness versus “best take” videos, even if humans still narrowly win; the bigger point is repeatable performance under fatigue and time pressure.

The real limiter is robot supply, not just smarter models.

Even if intelligence reaches useful levels quickly, robots can’t be “instantiated” like software; scaling requires factories, component supply chains, and lead times for hundreds to thousands of units.

Full-stack humanoid companies have a compounding advantage.

Building hardware, training systems, deployments, and manufacturing together enables co-optimization (sensing, torque control, simulation fidelity) and ensures access to large fleets for proprietary data collection.

Embodiment-specific data is a moat—and it requires fleets.

Models learn best from data collected in the same body they’ll operate in; without many identical robots (including teleop data collection), progress slows and generalization suffers.

Open source is closing fast and will commoditize much intelligence.

He claims the open-source gap has shrunk from ~2 years to ~6 months and will become “good enough” for many physical tasks, making differentiated value migrate to deployment, hardware, and manufacturing execution.

WORDS WORTH SAVING

5 quotes

This is a technological revolution that is different because it turns physical labor into a, in a product that almost anybody can access.

Andrew Kang

I actually think it's closer to something like two to three years where humanoid intelligence, robot intelligence gets good enough to do most of the tasks that we need on, on a daily basis.

Andrew Kang

I can spin up a million instances of a chatbot instantly, but I can't do that for robots. I can't produce them out of thin air.

Andrew Kang

Because if I'm doing a simple task, like for example, restocking shelves or, uh, you know, assembling a computer mouse, I don't need a really high-level intelligence to do that. I don't need an Einstein to be able to do these tasks.

Andrew Kang

It's pretty underappreciated how hard building a robotics company actually is.

Andrew Kang

Figure AI livestream validation and real-world task performanceVertical integration and full-stack humanoid strategyEmbodiment-specific data and fleet scaling bottlenecksManufacturing, supply chain, and factory build-out constraintsHumanoid market sizing via labor substitution and expansionOpen-source model acceleration and model-layer commoditizationUS–China ecosystem dynamics and platform vs product approaches

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