AI’s expansion into the physical world is reshaping what investors choose to back
Updated
February 12, 2026 1:21 PM
Exterior view of the Exchange Square in Central, Hong Kong. PHOTO: UNSPLASH
Artificial intelligence is often discussed in terms of large models trained in distant data centres. Less visible, but increasingly consequential, is the layer of computing that enables machines to interpret and respond to the physical world in real-time. As AI systems move from abstract software into vehicles, cameras and factory equipment, the chips that power on-device decision-making are becoming strategic assets in their own right.
It is within this shift that Axera, a Shanghai-based semiconductor company, began trading on the Hong Kong Stock Exchange on February 10 under the ticker symbol 00600.HK. The company priced its shares at HK$28.2, debuting with a market capitalization of approximately HK$16.6 billion. Its listing marks the first time a Chinese company focused primarily on AI perception and edge inference chips has gone public in the city — a milestone that underscores growing investor interest in the hardware layer of artificial intelligence.
The listing comes at a time when demand for flexible, on-device intelligence is expanding. As manufacturers, automakers and infrastructure operators integrate AI into physical systems, the need for specialized processors capable of handling visual and sensor data efficiently has grown. At the same time, China’s domestic semiconductor industry has faced increasing pressure to build local capabilities across the chip value chain. Companies such as Axera sit at the intersection of these dynamics, serving both commercial markets and broader industrial policy priorities.
For Hong Kong, the debut adds to a cohort of technology companies seeking public capital to scale hardware-intensive businesses. Unlike software firms, semiconductor designers operate in a capital-intensive environment shaped by supply chains, fabrication partnerships and rapid product cycles. Their presence on the exchange reflects a maturing investor appetite for AI infrastructure, not just consumer-facing applications.
Axera’s early backer, Qiming Venture Partners, led the company’s pre-A financing round in 2020 and continued to participate in subsequent rounds. Prior to the IPO, it held more than 6 percent of the company, making it the second-largest institutional investor. The public offering provides liquidity for early investors and new funding for a company operating in a highly competitive and technologically demanding sector.
Axera’s market debut does not resolve the competitive challenges of the semiconductor industry, where innovation cycles are short and global competition is intense. But it does signal that investors are placing tangible value on the hardware, enabling AI’s expansion beyond the cloud. In that sense, the listing represents more than a corporate milestone; it reflects a broader transition in how artificial intelligence is built, deployed and financed — moving steadily from software abstraction toward the silicon that makes real-world autonomy possible.
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A closer look at how reading, conversation, and AI are being combined
Updated
February 7, 2026 2:18 PM
Assorted plush character toys piled inside a glass claw machine. PHOTO: ADOBE STOCK
In the past, “educational toys” usually meant flashcards, prerecorded stories or apps that asked children to tap a screen. ChooChoo takes a different approach. It is designed not to instruct children at them, but to talk with them.
ChooChoo is an AI-powered interactive reading companion built for children aged three to six. Instead of playing stories passively, it engages kids in conversation while reading. It asks questions, reacts to answers, introduces new words in context and adjusts the story flow based on how the child responds. The goal is not entertainment alone, but language development through dialogue.
That idea is rooted in research, not novelty. ChooChoo is inspired by dialogic reading methods from Yale’s early childhood language development work, which show that children learn language faster when stories become two-way conversations rather than one-way narration. Used consistently, this approach has been shown to improve vocabulary, comprehension and confidence within weeks.
The project was created by Dr. Diana Zhu, who holds a PhD from Yale and focused her work on how children acquire language. Her aim with ChooChoo was to turn academic insight into something practical and warm enough to live in a child’s room. The result is a device that listens, responds and adapts instead of simply playing content on command.
What makes this possible is not just AI, but where that AI runs.
Unlike many smart toys that rely heavily on the cloud, ChooChoo is built on RiseLink’s edge AI platform. That means much of the intelligence happens directly on the device itself rather than being sent back and forth to remote servers. This design choice has three major implications.
First, it reduces delay. Conversations feel natural because the toy can respond almost instantly. Second, it lowers power consumption, allowing the device to stay “always on” without draining the battery quickly. Third, it improves privacy. Sensitive interactions are processed locally instead of being continuously streamed online.
RiseLink’s hardware, including its ultra-low-power AI system-on-chip designs, is already used at large scale in consumer electronics. The company ships hundreds of millions of connected chips every year and works with global brands like LG, Samsung, Midea and Hisense. In ChooChoo’s case, that same industrial-grade reliability is being applied to a child’s learning environment.
The result is a toy that behaves less like a gadget and more like a conversational partner. It engages children in back-and-forth discussion during stories, introduces new vocabulary in natural context, pays attention to comprehension and emotional language and adjusts its pace and tone based on each child’s interests and progress. Parents can also view progress through an optional app that shows what words their child has learned and how the system is adjusting over time.
What matters here is not that ChooChoo is “smart,” but that it reflects a shift in how technology enters early education. Instead of replacing teachers or parents, tools like this are designed to support human interaction by modeling it. The emphasis is on listening, responding and encouraging curiosity rather than testing or drilling.
That same philosophy is starting to shape the future of companion robots more broadly. As edge AI improves and hardware becomes smaller and more energy efficient, we are likely to see more devices that live alongside people instead of in front of them. Not just toys, but helpers, tutors and assistants that operate quietly in the background, responding when needed and staying out of the way when not.
In that sense, ChooChoo is less about novelty and more about direction. It shows what happens when AI is designed not for spectacle, but for presence. Not for control, but for conversation.
If companion robots become part of daily life in the coming years, their success may depend less on how powerful they are and more on how well they understand when to speak, when to listen and how to grow with the people who use them.