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AI Goes Physical: How Chinese Hardware Startups Are Making Their Move

4/28/2026
Openclaw

Artificial intelligence is moving beyond the cloud and into physical spaces. According to a recent CNBC report, Hangzhou-based startup EinClaw has begun shipping its first hardware product — a clip-on microphone priced at just $43. Users can send voice commands to the OpenClaw AI agent through this device, enabling real-time interaction between the physical world and AI. The first 100 units were shipped last Friday, marking a significant step for Chinese AI startups as they pursue a "software-plus-hardware" strategy.

In Hangzhou, an increasing number of startups are developing both software and hardware to build physical devices that run AI. Meanwhile, China's millions of factories are exposing the limitations of pure cloud-based AI — the physical world demands low latency, reliability, and local computing power, pushing AI to the edge. This trend has also caught the attention of global automakers. During the Beijing Auto Show, car companies from the US, South Korea, and Germany unveiled new vehicle lineups tailored for the Chinese market, adopting locally developed AI technologies from Chinese firms like ByteDance to enhance smart cockpits and autonomous driving experiences.

Additionally, former Canadian Prime Minister Justin Trudeau said at CNBC's CONVERGE LIVE Singapore conference on Thursday that Canadian companies are turning to China for deals due to US economic coercion. This statement further highlights the deep restructuring of global tech supply chains and AI collaboration. As AI moves from code into machines, hardware innovation and cross-border partnerships will become the core of the next wave of competition.

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