European firms say they are fighting to secure a foothold in physical AI as China and the United States take an early lead.
Schaeffler Technologies, a German maker of automotive and industrial components, entered humanoid robotics in January through a partnership with UK start-up Humanoid.
"Do not count out Europe," said David Kehr, president of Humanoid Robotics, a division of Schaeffler Technologies.
Under the deal Schaeffler supplies the actuators, mechanical joints and motors that power a robot's movement, and plans to deploy Humanoid's AI models across its own factories.
Industry insiders warn the continent risks further deindustrialisation if it fails to establish a competitive physical-AI industry.