Discover the AI-powered robots that Big Tech believes will address the global labor shortage.

Silicon Valley is seeing an increase in AI-powered robots. Some experts predict that these robots could address the global labor shortage.

Humanoid robots, which are designed to perform tasks meant for people, have been funded by billions of dollars from companies such as and . These machines typically stand on two legs.

While currently being used in warehouses, proponents suggest that these bots have the potential to collaborate with individuals in various settings, such as homes and offices.

Elon Musk, CEO of Tesla, has been a prominent advocate for electric vehicles and is now focusing on the company's Optimus robot, which he believes will have a transformative impact on the world, even greater than the impact of electric cars.

Tesla's CEO, Elon Musk, stated during the company's first-quarter earnings call that Optimus could contribute to a $25 trillion market cap and represent "a significant portion of Tesla's long-term worth." Meanwhile, Amazon has already started using Agility Robotics' Digit robots in its fulfillment centers.

According to Goldman Sachs' analysis, the market for humanoids is expected to reach $38 billion in the next 20 years, making them the next "must-have" device, similar to smartphones or EVs. Humanoids may be crucial for manufacturing and hazardous work, but they could also assist with elderly care and address labor shortages in factories.

AI boost

Robots have been around for decades, but recent advances in artificial intelligence have renewed optimism in the industry. The technology behind OpenAI's ChatGPT is allowing robots to interpret language and commands, make decisions, and use computer vision to train in real-world scenarios.

"According to Henrik Christensen, a professor of computer science and engineering at University of California at San Diego, "Robotics is the intersection of AI and reality, resulting in fascinating new possibilities that we could not have imagined five years ago.""

The global labor shortage has sparked renewed interest in humanoids, with the U.S. facing a shortage of 8.5 million jobs, particularly in manufacturing, where Goldman estimates a shortage of 2 million workers by 2030. Robots are being used to fill jobs that are repetitive and hazardous, according to proponents.

Jeff Cardenas, CEO and co-founder of robot startup Apptronik, stated that they are beginning with tasks that are considered dull, dirty, and dangerous, which currently have significant labor shortages, and where there is a lack of individuals willing to perform this work.

The global industry of industrial robots is dominated by China, which surpassed Japan as the world's largest installer in 2013 and now accounts for more than half of the world total, as per Stanford's AI Index Report.

"According to Tom Andersson, principal analyst at Styleintelligence, the Chinese market is the largest in the world, with only Amazon in the West producing anything similar. However, he noted that Chinese companies are rapidly catching up."

Despite the high cost of machines and safety concerns about allowing robots to operate freely in factories, there are still roadblocks to the widespread adoption of automation in manufacturing.

"Andersson stated that mass adoption or something similar may take several years, possibly a decade or more. He apologized to Musk."

Watch the entire video to learn more about the rise of humanoid robots.