Sunac's Zhao Junfeng: Embodied AI Holds Bright Prospects, But Caution is Key

Deep News11-17

At the 27th China Hi-Tech Fair held in Shenzhen from November 14–16, 2025, the China Hi-Tech Forum centered on the theme "AI Empowers Future Industries." During a panel discussion on embodied intelligence, Zhao Junfeng, founding partner of Sunac Investment, emphasized returning to commercial fundamentals: "Either a differentiated scenario/technology or a robust industrial foundation to slash costs is critical."

Zhao acknowledged that embodied AI robots currently lack profitable applications due to prohibitive costs—R&D, validation, mass testing, and marketing. "Few major players are profitable yet. While the outlook is promising, we must stay level-headed," he cautioned.

Moderated by Yao Ningbo, Managing Director of Kailian Capital, the "Embodied AI Investment Roundtable" convened industry leaders to discuss balancing technological ambition with commercial viability. Panelists included Zhao Junfeng (Sunac Investment), Fu Zhonghong (Fortune VC), and Chen Jianquan (UBTECH IR head).

**Investment Landscape & Challenges** Zhao noted Sunac’s focus since 2016 on AI/robotics, backing firms like Lianhui Tech (AI databases) and Weilan Tech (vision robotics). He advised investing upstream in "pick-and-shovel" plays—components, materials, and tools—rather than unproven robot makers. "Cost barriers like reducers, control chips, and PCBs offer safer bets. Systemic innovation should be left to state-backed players," he added.

**Technological Pathways** When asked if current teleoperation-based robots truly qualify as embodied AI, Zhao argued no definitive technical route exists yet. Distributed computing across devices, edge, and cloud each pose trade-offs in latency, bandwidth, and processing. "The ultimate goal is autonomous machines with 'personhood,' not remote-controlled puppets," he remarked.

**Investor Mindset** Zhao urged differentiation: "Investing demands non-consensus vision yet consensus validation. Stick to your core strengths—patience breeds outliers." He cited Zhijin Robot’s $50B valuation post-acquisition as a harbinger of embodied AI’s potential, albeit rare.

The session closed with optimism tempered by pragmatism: embodied AI’s journey has just begun.

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