Seres Group Co., Ltd. (601127.SH) announced on Friday that its wholly owned subsidiary, Chongqing Phoenix Technology Co., Ltd. (Seres Phoenix), has signed a Framework Agreement for Cooperation in Embodied Intelligence Business with Beijing Volcano Engine Technology Co., Ltd. (Volcano Engine) — the cloud computing and AI arm of ByteDance.

The partnership will focus on advancing “intelligent robot decision-making, control, and human-machine augmentation technologies for multimodal cloud-edge collaboration.” Both sides plan to establish a closed-loop system that integrates technology R&D and scenario validation, laying a foundation for long-term collaboration in embodied intelligence applications.

According to the announcement, Volcano Engine will contribute its expertise in large language models, computer vision, and multimodal AI to provide algorithmic and computing support. Seres, leveraging its industrial strength in intelligent vehicles and manufacturing, will translate these AI capabilities into practical industrial applications — moving toward what the company describes as AI+ embodied intelligence for “smarter, safer, and more emotionally aware mobile intelligent agents.”

The cooperation aims to create a “technology + scenarios” model that empowers digital and intelligent transformation across the automotive ecosystem. Analysts note that this initiative fits into China’s broader ambition to establish leadership in physical AI, where robots and intelligent systems interact seamlessly with the physical world.

Seres shares jumped more than 3% at market open on Friday.

The collaboration arrives amid a global race toward embodied intelligence — a convergence of robotics, artificial intelligence, and human-machine interaction. On Thursday, U.S. humanoid robotics startup Figure AI unveiled its latest model, Figure 03, capable of performing everyday household tasks such as folding laundry and interacting with pets. The robot also landed on the cover of Time magazine’s 2025 Best Inventions issue.

At the same time, Alibaba’s Tongyi Qianwen team revealed that the company had formed an internal robotics and embodied intelligence task force, marking its strategic expansion from AI software to hardware applications.

Industry watchers say these developments reflect a paradigm shift: as large AI models mature, global tech giants are competing to apply them in the physical world — from smart factories to humanoid robots.

Established in 2020 with a registered capital of 1 billion yuan, Volcano Engine has grown into one of China’s most advanced cloud and AI infrastructure platforms, with annual revenue exceeding 10 billion yuan. Originally designed to serve enterprises with cloud services and recommendation algorithms, the platform now extends into embodied AI and robotics.

According to Zhang Xin, Vice President of Volcano Engine, the evolution of artificial intelligence has entered a new phase.

“We are moving from perceptual AI to generative AI, and now into physical AI,” Zhang said in September. “2025 will mark the first large-scale rollout of intelligent agents. Embodied intelligence is the key bridge connecting AI technologies with the real physical world.”

Volcano Engine’s robotics research team has developed Robix, an end-to-end large model designed for robotic decision-making and multimodal interaction. The company is also working with Seres on a food delivery robot project, where ByteDance provides the model “brain” while Seres manages hardware design and supply chain integration.

Industry analysts expect the collaboration to deepen further — potentially extending into humanoid robotics in the near future.

The partnership also highlights Huawei’s growing alignment with embodied intelligence through its automotive ecosystem. On September 29, Seres announced that its subsidiary Seres Auto would acquire a 10% stake in Shenzhen Yinwang Intelligent Technology Co., Ltd., a company established by Huawei’s Intelligent Automotive Solution Business Unit, for 11.5 billion yuan.

Huawei envisions Yinwang as an open platform for intelligent vehicle technologies, enabling industry-wide collaboration in electrification and smart mobility. As Huawei’s closest automotive partner, Seres stands to benefit from the integration of AI-driven decision-making and robotics into next-generation vehicles.

Yu Chengdong, Executive Director of Huawei and CEO of its Consumer Business Group, recently assumed an additional role as IRB Director, signaling Huawei’s intensified focus on artificial intelligence. Analysts note that for Huawei, vehicles and robots serve as two key carriers for AI applications — both central to its long-term intelligent systems strategy.

Seres, founded in 1986 and headquartered in Chongqing, has transformed from a traditional automaker into a technology-driven new energy vehicle (NEV) manufacturer. It partnered with Huawei in 2021 to launch the AITO Wenjie brand, now one of China’s fastest-growing intelligent vehicle lineups.

Seres delivered 147,000 vehicles in the first half of 2025, led by the flagship Wenjie M9 with over 62,000 units sold.

The company has also received approval from the China Securities Regulatory Commission (CSRC) to issue H-shares and list on the Hong Kong Stock Exchange, part of its strategy to globalize its intelligent mobility business.

Automakers Embrace Embodied Intelligence

As AI systems evolve from digital to physical intelligence, automakers are becoming critical players in this emerging field. The integration of large models into vehicles enables real-time perception, decision-making, and control — the same three pillars that underpin robotics.

“Cars are an excellent platform for realizing embodied intelligence,” said Su Linke, General Manager of DeepBlue Auto’s software platform. “They combine sensing, computing, and execution capabilities, providing a bridge between AI models and real-world applications.”

Dong Yinkang, General Manager of Beijing National Intelligent Connected Vehicle Investment Management Co., added that the automotive and embodied intelligence industries share deep technological synergies, including power electrification and human-machine coordination. “Their integration will accelerate innovation on both sides,” he said.

The Broader Context: U.S.-China Race in Humanoid Robotics

The Seres–Volcano partnership comes as competition intensifies between Chinese and American companies in humanoid robotics — a field increasingly seen as the next frontier after electric vehicles and smartphones.

Figure AI, often dubbed the “American version of Unitree,” has drawn global attention for its general-purpose humanoid robot Figure 03. The robot integrates a self-developed Vision-Language-Action (VLA) large model named Helix, allowing it to understand human instructions and perform physical tasks autonomously.

The company’s BotQ factory is capable of producing 12,000 robots per year, with plans to expand to 100,000 unitswithin four years. BMW has already announced plans to deploy Figure’s robots on its assembly lines to enhance production safety and efficiency.

Meanwhile, Tesla is scaling up its own humanoid robot program, with CEO Elon Musk projecting mass production by 2026 and an annual output of 1 million units by 2030. SoftBank is also making moves — acquiring ABB’s robotics business for $5.375 billion earlier this week to bolster its AI robotics division.

According to the China Academy of Information and Communications Technology (CAICT), by 2045, China’s humanoid robot population will exceed 100 million, with a total market size of 10 trillion yuan.

Embodied Intelligence and the Future of Mobility

Experts believe that embodied intelligence will fundamentally reshape not only robotics but also the automotive industry.

Zhao Lijin, Deputy Secretary-General of the China Society of Automotive Engineers, said:

“Embodied intelligence can elevate both vehicle performance and production efficiency. It enables advanced autonomous driving and smarter cockpit interactions, while humanoid robots on manufacturing lines can handle repetitive, high-risk tasks — achieving higher quality and lower costs.”

As companies like Seres, Huawei, and ByteDance deepen collaboration, China is positioning itself at the forefront of the AI + robotics + mobility convergence — a transformation that could redefine both transportation and intelligent life in the years ahead.