2026 AI Overview: From “Predicting the Next Word” to “Taking Over the Physical World”

As we look back from the point of February 2026, artificial intelligence is undergoing a profound transformation from a “digital brain” to a “physical entity.” If 2023 marked the dawn of conversational agents, then 2026 signifies the full arrival of the “Era of Agents.” Here are the key trends and developments in the AI industry to watch this month.

1. Paradigm Shift: NSP Becomes the New Consensus for AGI

There is a growing consensus in the industry moving from simple language models (predicting the next word) to multimodal “world models” that understand the laws of physics. A significant technological breakthrough is the “Next State Prediction” (NSP) proposed by institutions like the Zhiyuan Research Institute, which is beginning to replace traditional language prediction paradigms. This shift indicates that AI is starting to grasp spatial-temporal continuity and causal relationships.

In industry news, Google DeepMind has launched Project Genie, allowing users to generate interactive 3D virtual worlds using natural language. AI is no longer confined to chatting on screens; it is learning to simulate reality.

2. Embodied Intelligence: Humanoid Robots Enter “Industrial Practice”

2026 is poised to be a pivotal year for embodied intelligence, with companies that can only demonstrate demos being phased out, while firms capable of closed-loop evolution are beginning to dominate factories. Key product launches include Tesla’s third-generation humanoid robot and the open-sourced embodied intelligence model, Thinker, from UBTECH.

Humanoid robots are now taking on high-intensity tasks in real industrial settings, such as automotive assembly and the handling of hazardous chemicals, moving beyond being mere “expensive toys” in laboratories.

3. Intense Competition: Chips, Computing Power, and “Space Data Centers”

The demand for computing power continues to be a critical bottleneck for AI development, prompting tech giants to employ extreme measures to overcome these limitations. SpaceX, under Elon Musk, has applied to deploy one million satellites, aiming to create an orbital data center around Earth to provide unprecedented space-based computing power for AI models.

In the chip competition, NVIDIA has showcased its Vera Rubin platform, composed of six chips. Alibaba has released its self-developed AI chip, “Zhenwu 810E,” which enhances inference efficiency through a combination of software and hardware. AMD and Intel are also actively launching new products in the 2-nanometer process and inference chip sectors.

4. Capital Dynamics: Emergence of China’s “New BAT”

At the start of 2026, Chinese large model enterprises are experiencing a wave of IPOs and a talent return trend. Notable capital movements include Zhizhu AI and MiniMax successfully listing on the Hong Kong Stock Exchange. Renowned Chinese AI talents, such as Tsinghua University prodigies Pang Tianyu and Yao Shunyu, are returning home to join domestic giants like Tencent and ByteDance.

Core Insight: AI’s V-Shaped Recovery After Entering the “Disillusionment Valley”

Despite rapid technological advancements, many enterprise-level AI applications have entered what Gartner refers to as the “disillusionment valley” due to data bottlenecks and high costs. Experts predict that the second half of 2026 will witness a “V-shaped” recovery. As data governance systems mature, AI will evolve from being a “talking dictionary” to an “autonomous housekeeper,” achieving agentification in 40% of enterprise applications.