JD.com commits 10-billion-yuan robotics push to scale 100 brands by 2028

JD.com commits 10 billion yuan to robotics by 2028, targeting 100 brands to each reach 1 billion yuan in sales, as the e-commerce giant pivots to physical AI after its first quarterly revenue decline since listing.

"JD is not the strongest player in the industry in terms of large model R&D, but it boasts rich advantages in physical scenario data," Richard Liu, chairman of JD.com, said at the 2026 APEC China Business Leaders Forum in June.

The strategy spans supply chain, services, and technology. JD's robotics deployments already include the "Smart Wolf" goods-to-person system in more than 60 warehouses globally, thousands of unmanned delivery vehicles operating across 20-plus provinces, and a drone network covering 78 administrative villages. The company's RoboBase project, which broke ground in Guangzhou in the second quarter, plans to establish more than 80 robot bases nationwide over the next five years.

The robotics push comes as JD's Q2 revenue fell 2.9 percent year-on-year to 346.4 billion yuan — the first decline since its listing — while non-GAAP net profit rose 21 percent to 8.9 billion yuan. R&D spending jumped 37.7 percent to 7.3 billion yuan in the quarter even as marketing expenses shrank 24.8 percent, a sign the company is reallocating capital from customer subsidies toward automation infrastructure.

R&D Up 37.7% as JD Reallocates From Subsidies

The announcement follows a broader strategic shift under Liu, who took the role of dean of JD's Exploration Research Institute in September 2025, elevating AI to a top-priority initiative. Liu has said JD will not lay off any of its 700,000 couriers and warehouse workers displaced by automation, instead launching the "Nirvana Plan" to retrain them in robot maintenance and repair. "In the future, all deliveries will be done by robots... but I will not let 700,000 of our colleagues lose their livelihoods and jobs," he said.

JD's robotics strategy is distinct from pure-play AI companies. Rather than competing on large model benchmarks, JD is deploying AI across its logistics and retail operations where it holds proprietary physical-world data. The company has open-sourced EgoLive, described as the industry's largest human-perspective dataset, and is building what it calls the world's largest embodied data collection center in Suqian.

The commercial stakes are significant. JD's electronics and home appliances business, its core revenue driver, fell 11.8 percent year-on-year to 157.9 billion yuan in Q2, pressured by a high base from last year's national subsidy program and rising component costs. Meanwhile, general merchandise grew 5.6 percent, platform and advertising services rose 8.3 percent, and logistics revenue gained 5.9 percent. The robotics strategy is designed to protect margins in the core business while creating new revenue streams through robotics-as-a-service and brand enablement.

Physical Data vs. Alibaba and Meituan

JD's Joybuy overseas business, which replicates its supply chain model in Europe, doubled revenue within two quarters, according to CEO Xu Ran. The robotics investment could extend this advantage by lowering fulfillment costs in new markets. JD Logistics' operating profit reached 2.26 billion yuan in Q2, up 15.6 percent year-on-year, partly reflecting automation-driven efficiency gains.

The company faces competition from Alibaba's logistics arm Cainiao and Meituan's delivery network, both investing in automation. JD's advantage lies in its vertically integrated model — it owns the warehouses, the delivery fleet, and the retail platform, giving it end-to-end data that pure logistics providers lack.

For investors, the robotics strategy represents a shift in capital allocation from customer subsidies to infrastructure. JD's food delivery losses narrowed by more than 50 percent year-on-year in Q2, freeing capital for automation investments. The question is whether 10 billion yuan in robotics spending can generate returns comparable to what customer acquisition once delivered, and whether JD can convert its physical-world data advantage into a durable competitive position as Alibaba and PDD Holdings scale their own AI initiatives.

This article is for informational purposes only and does not constitute investment advice.