HKUST and CalmCar Establish the Physical AI Innovation Center, Ushering in a New Era of Physical Intelligence
HONG KONG, Jun 3, 2026 - (ACN Newswire) -The Hong Kong University of Science and Technology (HKUST) and Suzhou Calmcar Electronics Technology Co., Limited (CalmCar) yesterday officially signed a strategic agreement to jointly establish the Physical AI Innovation Center. The Center is dedicated to advancing full-stack physical AI technologies, addressing fundamental bottlenecks in current AI, including an insufficient understanding of the laws of the physical world, limited reasoning capabilities, and a lack of reliable support for action and decision-making.
The Center will build a new-generation physical AI technology foundation capable of understanding, predicting, reasoning, and decision-making, supporting strategic industries such as autonomous driving, robotics, and smart manufacturing, while helping position Hong Kong as a key strategic hub for national physical AI innovation.
Multidimensional Research Directions: Full-Stack Layout from Chips to Applications
The Center will pursue research covering chips and systems, foundational models and data, privacy protection and safety governance, as well as core application scenarios. By exploring and leveraging world models to build high-fidelity strategy validation and interactive reasoning capabilities, the Center aims to train AI in virtual environments before transferring capabilities to the real world-significantly improving AI‘s generalizability, interpretability, and reliability in complex and open environments, and building a long-term technical foundation for a wide range of intelligent applications.
The Center’s ambition is to become a global strategic hub for physical AI innovation, leading the development of industry benchmarks and open-source platforms, and cultivating internationally competitive talent in physical AI.
Based in Hong Kong, Serving the National “AI+” Strategy
The Center will actively serve the national “AI+” strategy, positioning itself with Hong Kong as its base, the Greater Bay Area as its hinterland, and the world as its stage. It strives to become a strategic highland for physical AI research in the Asia-Pacific region and an international hub for collaboration. The Center will establish end-to-end capabilities from fundamental research to industrial deployment, providing unified technical standards and common tools for the industry. Leveraging Hong Kong’s global connectivity and the Greater Bay Area’s comprehensive industrial supply chain, the Center will accelerate technology transfer and build a world-leading research and innovation center for physical intelligence.
World-Class Academic Leadership
The Center is led by Prof. GUO Song – Fellow of the Canadian Academy of Engineering, Foreign Member of the European Academy of Sciences (EU), IEEE Fellow, and Chair Professor in the Department of Computer Science and Engineering at HKUST – who serves as its director. Prof. Guo has long been engaged in distributed computing, edge AI, and multi-modal foundation models, dedicated to solving the challenges of generalization and reliability of AI in real-world physical environments.
He is a recipient of the IEEE Edward J. McCluskey Technical Achievement Award, one of the highest honors in computer engineering, and is widely recognized as an international leader in the field. He also leads the Pervasive Intelligence Laboratory (PeiLAB), which has been based in Hong Kong for a decade and has produced substantial original achievements in physical world modeling, embodied reinforcement learning, and edge intelligent systems, providing a solid theoretical foundation for the Center’s research endeavors.
Prof. Guo Song remarked: “Our pioneering ‘Physical Alignment’ technology upgrades generative video models into interactive world models, marking a shift in AI from ‘seeing the world’ to ‘acting on the world.’ By enabling infinite trial and error in virtual spaces, we provide a new paradigm for behavior prediction and safety planning in next-generation autonomous driving.”
Prof. Zheng Weimin stated that physical AI will be a major strategic direction following general-purpose foundation models. He then presided over the handshake and group photo ceremony between the Strategic Advisory Committee and the Innovation Center, marking the field’s official entry into a new phase of industry-academia-research integration. He expressed hope that the Center will continue to make significant contribution to the national AI strategy.
The Center has invited Prof. ZHENG Weimin—Senior Member of the Chinese Academy of Engineering, 10th President of the China Computer Federation (CCF), and Professor at Tsinghua University—to chair its Strategic Committee. Prof. GUO Yike—Foreign Member of the Chinese Academy of Engineering, Fellow of the Royal Academy of Engineering (UK) and the European Academy of Sciences (EU), and Provost of HKUST—serves as the University Advisor to the Center, providing strong support.
Other Strategic Committee advisors include Prof. Xuemin (Sherman) SHEN—Foreign Member of the Chinese Academy of Engineering, Fellow of the Royal Society of Canada, Fellow of the Canadian Academy of Engineering, and Professor at the University of Waterloo; Dr. Bai-ning GUO—Fellow of the Royal Society of Canada, Microsoft Technical Fellow, Managing Deputy Director of Microsoft Research Asia, IEEE Fellow, and ACM Fellow; and Prof. David Atienza ALONSO — Fellow of the European Academy of Sciences, IEEE Fellow, ACM Fellow, Professor of Electrical and Computer Engineering at EPFL, and Associate Vice President for Centers and Platforms at EPFL.
From Perception to Understanding: Driving the Evolution of Intelligent Systems
Unlike traditional AI that relies on massive data fitting, physical AI emphasizes a model’s ability to understand dynamic real-world laws and causal structures. Physical AI is driving intelligent systems beyond perception and recognition toward dynamic prediction, interactive reasoning, and autonomous decision-making grounded in physical consistency. As a key enabling technology, world models simulate and anticipate environmental dynamics, providing a foundation for policy learning and validation in complex scenarios while enhancing generalization and reliability in distributed settings.
Leveraging the Physical AI Innovation Center, CalmCar—as a co-founder of the Center— will take the lead in applying these technologies to autonomous driving, enabling vehicles not only to perceive their surroundings but also to understand physical causality and anticipate the evolution of traffic scenarios, thereby advancing from perception to cognition.
Looking ahead, the Center is committed to building partnerships with a broader range of industry partners, validating and refining physical AI technologies across diverse application scenarios, driving innovation in world model methodologies, and fostering the sustainable integration of physical AI technologies with the industrial ecosystem.
Unveiling Ceremony: Witnessed by Leaders from Government, Academia, and Industry
The unveiling ceremony brought together government leaders, leading academics, industry executives, and investment professionals. Representatives from HKUST and CalmCar’s founding team jointly unveiled the Center. Distinguished guests, including Mr. Duncan CHIU, Legislative Council Member (Technology & Innovation) of Hong Kong, and Mr. CHEN Xu, Executive Deputy Director of the Guangzhou Greater Bay Area Office, witnessed the launch of the initiative.
As a core strategic partner in establishing the Center, Lion X Ventures has been deeply involved in its preparation and ecosystem building throughout the process. Leveraging its industry resources, cross-border reach, and capital expertise, Lion X Ventures provides comprehensive support for the Center’s operations and development, laying a solid foundation for its long-term growth.
The high-caliber presence of leaders from government, academia, industry, and investment community, combined with the strategic support of top investment institutions, fully demonstrates the Center’s industry standing, resource depth, and strategic value. It also marks the official launch of a collaborative innovation ecosystem in the Greater Bay Area led by HKUST’s physical AI technologies.
The HKUST-CalmCar Physical AI Innovation Center inauguration ceremony
(From left to right: Ms. Diana WU, CEO of HSBC Hong Kong; Mr. Duncan CHIU, Legislative Council Member (Technology & Innovation) of Hong Kong; Mr. Terry TSANG, HKUST Court Member and Chairman of the Convocation, CEO of Madhead; Prof. ZHOU Xiaofang, Head of the Department of Computer Science and Engineering at HKUST; Prof. ZHENG Weimin, Academician of the Chinese Academy of Engineering, former Chairman of the China Computer Federation, Professor at Tsinghua University; Mr. WANG Xi, Chairman and CEO of CalmCar; Prof. Guo Yike, Provost of HKUST; Prof. Tim CHENG, Vice-President for Research and Development of HKUST; Prof. Guo Song, Chair Professor of the Department of Computer Science and Engineering at HKUST and Director of the Physical AI Innovation Center; Mr. CHEN Xu, Executive Deputy Director of the Guangzhou Greater Bay Area Office; Mr. Daniel KWAN, Global Head of Mid-Capital and Equity Investment at OCBC; Ms. GUO Yanni, CEO of Lion X Ventures)
Prof. Tim Cheng stated: “Physical intelligence will be a core force reshaping human society over the next decade. We have chosen this moment to fully commit to this direction—not merely to build a strong research organization, but to define a new research field from our own perspective. I believe that, years from now, when we look back on today, this will be remembered as an important moment in HKUST’s history.”
The gathering of leaders from academia, industry, and investment underscores the significance and impact of this collaboration. The establishment of the Center is not only a milestone in university-industry collaboration but also a model for technology exchange and innovation between Shanghai and Hong Kong.
The launch ceremony of the Industry-Research Alliance
The launch ceremony of the Capital Alliance
The ceremony also marked the launch of the Industry-Research Alliance and the Capital Alliance, jointly initiated by HKUST, CalmCar, and other leading institutions. The inaugural industry partners include Tsinghua University, Microsoft Research Asia, 51WORLD (6651.HK), MetaX Integrated Circuits (688802.SH), Arm China, and Huixi Technology. Participating investment institutions include HSBC (0005.HK), Lion X Ventures, Dragonstone Capital, GPTX Investment, Delian Capital, G70 MFO, WeMove Capital, and Great Filter Venture.
This marks the official launch of a collaborative innovation ecosystem spanning industry, academia, research, and application in the field of physical AI.
The Industry-Research Alliance will focus on technology breakthroughs and scenario deployment, while the Capital Alliance will provide funding and commercialization pathways for leading technologies.
In terms of talent development, both sides will build an industrial training system aligned with international standards, with CalmCar providing real-world engineering scenarios and hands-on opportunities, thereby nurturing a talent pipeline that spans basic research, technology development, and application deployment.
The establishment of the Physical AI Innovation Center will further promote technology exchange and resource integration between Hong Kong and the Chinese Mainland in the most advanced frontier of physical AI. It aims to attract partners across the entire industrial chain and create an open, win-win ecosystem for the physical AI industry.
About The Hong Kong University of Science and Technology
The Hong Kong University of Science and Technology (HKUST) (https://www.hkust.edu.hk/) is a world-class university known for its innovative education, research excellence, and impactful knowledge transfer. With a holistic and interdisciplinary pedagogy approach, HKUST was ranked 6th in the QS Asia University Rankings 2026, 3rd in the Times Higher Education’s Young University Rankings 2024, and 19th globally and 1st in Hong Kong in the Times Higher Education’s Impact Rankings 2025. Eleven HKUST subjects were ranked among the world’s top 50 in the QS World University Rankings by Subject 2026. In addition, in the Times Higher Education World University Rankings by Subject 2026, HKUST’s Computer Science discipline which encompasses areas such as artificial intelligence and machine learning, has been ranked No. 1 in Hong Kong for ten consecutive years. Our graduates are highly competitive, consistently ranking among the world’s top 30 most sought-after employees. In terms of research and entrepreneurship, over 80% of our work was rated “internationally excellent” or “world leading” in the Research Assessment Exercise 2020 of the Hong Kong’s University Grants Committee. As of May 2026, HKUST members have founded over 1,900 active start-ups, including 11 Unicorns and 22 exits (IPO or M&A).
About CalmCar
Suzhou Calmcar Electronics Technology Co., Limited (CalmCar) was founded in 2016 and is a leading software-focused provider of L2-L2+ and L4 driving solutions in China. By 2024 installation volume, it ranks as the country’s second largest software-focused provider that offers both driving and parking solutions, and the first Chinese provider to deliver mass-production L2-L2+ solutions overseas. The company focuses on key autonomous driving technologies, offering driving, parking, and intelligent cockpit solutions with integrated driver monitoring systems (DMS), as well as L4 applications including robobuses, robotrucks, robotaxis, and robosweepers. CalmCar has partnered with over 30 vehicle manufacturers, including nine of China’s top ten automakers by sales in 2024. Its strategic investors include ZF, SAIC North America, SAIC Hengxu, BAIC Capital, China Unicom, Horizon Robotics, China TransInfo, SenseTime, Lion X Ventures, OCBC, and other leading industry players, providing solid support for innovation and global expansion.
About Lion X Ventures
Lion X Ventures is a professional venture capital institution rooted in industry and focused on cross-border investment. It targets Southeast Asia’s digital economy and high-end manufacturing sectors. Riding on the trend of Chinese enterprises expanding into Southeast Asia, we deliver capital support, industrial resources and global landing solutions for high-potential startups and growth-stage companies.
Founded in 2019, Lion Partners is the parent entity of Lion X Ventures. As a value investor dedicated to growth-oriented innovative enterprises, it is also a pioneer in joint investment across the digital economy and industrial ecosystem. We maintain a long-term focus on next-generation information technology, industrial digitalization, consumer tech and advanced manufacturing, while actively expanding our footprint in green technology and carbon neutrality.
Backed by resources from leading financial groups in Southeast Asia, we adopt a co-management fund model partnered with industry leaders. With profound industrial insights, we empower portfolio companies and build a two-way interactive industrial ecosystem connecting China and Southeast Asia, ultimately achieving win-win outcomes for capital, industries and regional development.
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