Rise of the machines: Elon Musk thinks humanoid robots will outnumber workers by 2040

Elon Musk talked up the potential for humanoid robots at the 8th Future Investment Initiative conference on Tuesday in Riyadh, Saudi Arabia. Musk said he sees humanoid robots outnumbering workers and driving an age of abundance by 2040.

In terms of cost, Musk thinks humanoid robots will be priced at $20K to $25K each. The company is currently investing in developing a bi-pedal, autonomous humanoid robot capable of performing unsafe, repetitive or boring tasks. The company has hired deep learning, computer vision, motion planning, controls, mechanical and general software engineers to solve some of the hardest engineering challenges around its Optimus humanoid robot.

Musk also warned once again at the conference on the dangers of AI, saying there is a 10% to 20% chance it could “go bad.”

During the Tesla (NASDAQ:TSLA) robotaxi event, Elon Musk predicted that Optimus robots will walk freely among the population and fill jobs such as bartending. Tesla (TSLA) wrapped up the event by conducting an Optimus dance party as a simulation of the humanoid robot future.

Seeking Alpha analyst Michael Del Monte thinks the humanoid robot concept has potential. “At $20,000 per humanoid robot, Optimus may be the labor force of the future. I believe that Optimus will be capable of executing repetitive tasks across distribution centers and manufacturing jobs, and if the robot is designed to be connected to the broader ecosystem with incorporated deep learning and neural networks, the humanoid will likely have the ability to adapt to its surroundings as a human.”

Other companies working on humanoid robot development include Boston Dynamics, Agility Robots, Figure AI, Sanctuary AI, Apptronok, Engineered Arts, Hanson Robotics, UBTech Robotics, and PAL Robotics. Companies testing industrial and manufacturing use cases for humanoid robots include Amazon (AMZN), BMW (OTCPK:BMWYY), Hyundai (OTCPK:HYMTF), and Mercedes-Benz (OTCPK:MBGAF). Some of those companies are also looking at household applications for a humanoid robot.