A Chinese startup is using VR-controlled humanoid robots to gather training data for autonomous warehouse and factory work, positioning the country's manufacturing hub as a test bed for physical AI.

What happened: IO-AI Tech, based near Shenzhen, has built technology that lets workers wearing VR headsets and motion-tracking gear remotely control humanoid robots and robotic hands from different manufacturers. The company is testing these systems with a Chinese convenience store chain and working with local manufacturers like Jack Sewing Machines to train robots to perform tasks such as shelf-stocking, item picking, and shirt ironing.

Why it matters: The startup is collecting teleoperation data (records of human movements controlling robots) that could eventually enable robots to work without human control. This approach mirrors how self-driving cars have been deployed with increasing autonomy over time, letting manufacturers test automation on real tasks before full autonomy. Shenzhen's concentration of thousands of manufacturers makes it an ideal location to develop and refine prototypes while working directly with companies eager to automate.

What to watch: IO-AI Tech is also working with Chinese vocational schools to build traction for robot teleoperation training. The success of this model could determine whether China's existing strength in producing cheap, high-quality robots like Unitree's translates into a lead in teaching AI to master physical tasks in the real world.