Betting on humanoid robots

American tech giants like Tesla and Nvidia are racing to develop humanoid robots, stressing their importance to the future economy. But analysts warn they are already at risk of losing out to China. So-called humanoid robots — artificial intelligence-powered machines designed to resemble humans in appearance and movement — are expected to provide a range of use cases, such as filling industrial and service sector jobs. As Chinese electric vehicle companies like BYD begin outpacing Tesla’s growth and undercutting its prices, experts say a similar dynamic could play out in humanoid robotics. In a research note in February, Morgan Stanley estimated that the current building costs of humanoid robots could range from $10,000 to $300,000 per unit, given different configurations and downstream application requirements. However, Chinese companies are already undercutting US competitors in terms of price thanks to superior economies of scale and manufacturing capabilities.

(Adapted from “US Tech Giants Are Betting Big On Humanoid Robots — But China’s Already Ahead, Analysts Say,” by Dylan Butts, published on March 28, 2025, by CNBC)

The return of Alibaba

Alibaba’s US listed shares have quietly risen nearly 60pc this year, adding more than $100bn to the company’s valuation. It’s a turnaround from the last few years, which have seen the e-commerce giant’s core business under pressure and close scrutiny from the Chinese government. Recent success has been credited to Alibaba’s artificial intelligence push, helped by the attention DeepSeek has brought on China, as well as the return of co-founder Jack Ma to the public eye. But there are questions about how Alibaba will make money off open-source AI models that are free. The answer, according to investors, AI experts and company executives, is Alibaba’s cloud computing business. However, more availability of AI and growing demand also means Alibaba could ultimately drive growth in its cloud computing business. Alibaba effectively charges companies to use its servers and computing power which is required to run AI applications, even if it’s not Alibaba’s models.

(Adapted from “Alibaba Has Staged A Quiet $100 Billion Rally — AI And Jack Ma’s Return Are At The Heart Of It,”

by Arjun Kharpal, published on March 27,

by CNBC)

India’s manufacturing ambitions

India has long harboured ambitions to become a manufacturing powerhouse. A flagship scheme launched five years ago to help the country realise that aim; however, it has fallen short of achieving key goals. In 2020, the Indian government launched a production-linked incentive (PLI) scheme to attract local and foreign businesses to establish and grow operations in the country as part of the ‘Make in India’ initiative. With an outlay of INR1.97tr ($23 billion), the PLI program focused on 14 sectors, including aerospace, automotive, electronics, pharmaceuticals and textiles. The scheme has fallen dramatically short of helping meet that target. Manufacturing’s share in GDP dropped to 14pc in the fiscal year ending March 2025 from over 15pc when the scheme was launched.

(Adapted from “CNBC’s Inside India Newsletter: What Ails India’s Manufacturing?” by Amala Balakrishner, published on March 27, by CNBC)

Musk and DOGE power

Nobody in Donald Trump’s inner circle has made feathers fly like Elon Musk. His so-called Department of Government Efficiency (DOGE) has broken laws with glee and callously destroyed careers. It has made false claims about waste and seized personal data protected by law. Some federal employees still have to send a weekly email listing five things they did last week. But the inbox is full and they bounce back. And yet, we are hesitant to write off Mr Musk completely. We cannot ignore his record of transforming one industry after another. In other countries, government reform, however painful and controversial, has often proved benign. And more is clearly needed: over the past 15 years, voters across the West have become frustrated because their governments seem more adept at slowing things down than making them go.

(Adapted from “The Economist This Week,” by Edward Carr, published on March 28, 2025, by The Economist)

Published in Dawn, The Business and Finance Weekly, March 31st, 2025