Did you know that the first VCR actually debuted at CES back in 1970? The tech trade show has always been about what's next, but for the past few years, it's also low-key become an auto show—and the most important one we cover here at InsideEVs. But this year, we're expecting a lot less in the way of battery-powered cars and a lot more about the industry's new favorite buzzword: "physical AI." 

Welcome back to Critical Materials, your daily roundup for all things electric and tech in the automotive space! We let our team take a breather on this feature to relax a bit over the holidays, and we hope you missed us.

Now we're back in force, covering the tech industry's biggest trade show. I'm on the ground here and so is Kevin Williams, and we'll be bringing you updates throughout the week. For now, here's what's on our radar. 

Here's the thing about CES, though: it showcases fantasies as much as it brings us what's next. People had VCRs (if you don't know what that is, go ask a grandparent or a nearby millennial) in their homes for decades. I am still waiting for flying cars to be a thing. Thus, it's good to take what you see at this show with a grain of salt. Or a gallon of it.

Still, there is an undeniable trend happening in the auto industry right now: a convergence between cars, autonomous driving, robotics and artificial intelligence. "Physical AI" is the buzzword on everyone's lips, just as "software-defined vehicle" was a decade ago. The term refers to AI technologies that go beyond software and exist in the real world, actually moving around and doing all sorts of tasks. 

You may remember a few months ago when General Motors put on a big showcase in New York about its future technologies, including eyes-off Super Cruise, in-car AI assistants and eventually, vehicles smart enough to pick up your dry cleaning when you're not even in it. The car as a kind of personal robot, in other words; that's physical AI. 

Of course, to do this, you need advanced AI, cutting-edge chipsets, next-generation sensors like lidar and radar, and better batteries. But the focus of the show seems to be less on individual cars and in-car tech, as was the case in 2023, 2024 and last year, and more on automating mobility itself and transforming cars into something more. 

Again, it all feels very conceptual—especially at a time when people are just looking for more affordable ways to get their kids to school on time. But this shift is happening, even if it can feel more like a Wall Street play and less of a concrete product plan. No wonder the headliner event features Jensen Huang, CEO of Nvidia, which is now an automotive powerhouse in its own right.