Business
Inside the race to train AI robots how to act human in the real world
CHENNAI, India — Now that artificial intelligence has mastered almost everything we do online, it needs help learning how we physically move around in the real world.
A growing global army of trainers is helping it escape our computers and enter our living rooms, offices and factories by teaching it how we move.
In an industrial town in southern India, Naveen Kumar, 28, stands at his desk and starts his job for the day: folding hand towels hundreds of times, as precisely as possible.
He doesn’t work at a hotel; he works for a startup that creates physical data used to train AI.
A robot practices for the 100-meter race before the opening ceremony of the World Humanoid Robot Games in Beijing in August.
(Ng Han Guan / Associated Press)
He mounts a GoPro camera to his forehead and follows a regimented list of hand movements to capture exact point-of-view footage of how a human folds.
That day, he had to pick up each towel from a basket on the right side of his desk, using only his right hand, shake the towel straight using both hands, then fold it neatly three times. Then he had to put each folded towel in the left corner of the desk.
If it takes more than a minute or he misses any steps, he has to start over.
His firm, a data labeling company called Objectways, sent 200 towel-folding videos to its client in the United States. The company has more than 2,000 employees; about half of them label sensor data from autonomous cars and robotics, and the rest work on generative AI.
Most of them are engineers, and few are well-practiced in folding towels, so they take turns doing the physical labor.
“Sometimes we have to delete nearly 150 or 200 videos because of silly errors in how we’re folding or placing items,” said Kumar, an engineering graduate who has worked at Objectways for six years.
The carefully choreographed movements are to capture all the nuances of what humans do — arm reaching, fingers gripping, fabric sliding — to fold clothes.
The captured videos are then annotated by Kumar and his team. They draw boxes around the different parts of the video, tag the towels, and label whether the arm moved left or right, and classify each gesture.
Kumar and his colleagues in the town of Karur, which is about 300 miles south of Bengaluru, are an unlikely batch of tutors for the next generation of AI-powered robots.
“Companies are building foundation models fit for the physical world,” said Ulrik Stig Hansen, co-founder of Encord, a data management platform in San Francisco that contracts with Objectways to collect human demonstration data. “There’s this huge resurgence in robotics.”
Encord works with robotics companies such as Jeff Bezos-backed Physical Intelligence and Dyna Robotics.
Tesla, Boston Dynamics and Nvidia are among the leaders in the U.S. in the race to develop the next generation of robots. Tesla already uses its Optimus robots — which seem to be often remotely controlled — for different company events. Google has its own AI models for robotics. OpenAI is beefing up its robotics ambitions.
Nvidia projects the humanoid robot market could reach $38 billion over the next decade.
There are also many lesser-known companies trying to provide the hardware, software and data to make a mass-produced, multitasking humanoid robot a reality.
Robots are displayed at Nvidia’s booth during the China International Supply Chain Expo in Beijing in July.
(Mahesh Kumar A. / Associated Press)
Large language models that power chatbots such as ChatGPT have mastered using language, images, music, coding and other skills by hoovering up everything online. They use the entire internet to figure out how things are connected and mimic how we do things, such as answering questions and creating photo-realistic videos.
Data on how the physical world works — how much force is required to fold a napkin, for example — is harder to get and translate into something AI can use.
As robotics improves and combines with AI that knows how to move in the physical world, it could bring more robots into the workplace and the home. While many fear this could lead to job losses and unemployment, optimists think advanced robots would free up humans from tedious work, lower labor costs and eventually give people more time to relax or focus on more interesting and important work.
Many companies have entered the fray as shovel sellers in the AI gold rush, seeing an opportunity to gather data for what is being called physical AI.
One group of companies is teaching AI how to act in the real world by having humans guide robots remotely.
Ali Ansari, founder of San Francisco-based Micro1, said emerging robotics data collection increasingly focuses on teleoperations. Humans with controllers make the robot do something like picking up a cup or making tea. The AI is fed videos of successful and failed attempts at doing something and learns to do it.
The remote-control training can happen in the same room as the robots or with the controller in a different country. Encord’s Hansen said that there are warehouses planned in Eastern Europe where large teams of operators will sit with joysticks, guiding robots across the world.
There are more of these, what some have dubbed “arm farms,” popping up as demand increases, said Mohammad Musa, founder of Deepen AI, a data annotation firm headquartered in California.
“Today, a mix of real and synthetic data is being used, gathered from human demonstrations, teleoperation sessions and staged environments,” he said. “Much of this work still occurs outside the West, but automation and simulation are reducing that dependency over time.”
Some have criticized teleoperated humanoids for being more sizzle than substance. They can be impressive when others are controlling them, but still far from fully autonomous.
Ansari’s Micro1 also does something called human data capture. It pays people to wear smart glasses that capture everyday actions. It is doing this in Brazil, Argentina, India, and the United States.
San José-based Figure AI, partnered with real estate giant Brookfield to capture footage from inside 100,000 homes. It will collect data about human movement to teach humanoid robots how to move in human spaces. The company said it will spend much of the $1 billion it raised to collect first-person human data.
Meta-backed Scale AI, has collected 100,000 hours of similar training footage for robotics through its prototype laboratory set up in San Francisco.
Still, training bots isn’t always easy.
Twenty-year-old Dev Mandal created a company in Bengaluru, hoping to cash in on the need for physical data to train AI. He offered India’s inexpensive labor to capture movements. After advertising his services, he got requests to help train a robotic arm to cook food as well as a robot to plug and unplug cables in data centers.
But he had to give up the business, as potential clients needed the physical movement data collected in a very specific manner, making it tougher for him to make money, even with India’s inexpensive labor. Clients wanted an exact robot arm, for example, using a certain kind of table with purple lights to be used.
“Everything, down to the color of the table, had to be specified by them,” he said. “And they said that this has to be the exact color.”
Still, there’s lots of work for the towel folders of Karur.
Their boss, Objectways founder Ravi Shankar, says that in recent months, his firm has captured and annotated footage of robotic arms folding cardboard boxes and T-shirts and picking out certain colored objects on a table.
It recently started annotating videos from more advanced humanoid robots, helping train them to sort and fold a mix of towels and clothes, folding them and placing them in different corners of the table. His team had to annotate 15,000 videos of the robots doing the jobs.
“Sometimes the robot’s arms throw the clothes and won’t fold properly. Sometimes it scatters the stack,” but the robots are learning quickly said Kavin, 27, an Objectways employee who goes by one name. “In five or 10 years, they’ll be able to do all the jobs and there will be none left for us.”
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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