Norwegian-American robotics company 1X Technologies: Humanoid robot Neo to be in private households from 2026

Forget about robot vacuums: This quiet helper for €499/month wants to become your new roommate.

The announcement sounds like something out of a science fiction film, but it's set to become reality as early as 2026: The Norwegian-American company 1X Technologies plans to conquer private households with its humanoid robot "Neo." With a purchase price of $20,000 or a monthly subscription for $499, the dream of a personal robot butler suddenly seems within reach. But behind the elegant design and impressive technical specifications lies far more than just a new luxury gadget. Neo is the harbinger of a technological and economic revolution that could fundamentally change our labor markets, our privacy, and the social fabric.

While competitors like Tesla and Boston Dynamics are targeting industrial applications, Neo was specifically designed for the home: It's lightweight, quiet, and capable of learning thanks to artificial intelligence. The real disruption, however, lies in its business model. Neo doesn't operate completely autonomously but is remotely controlled by humans when needed – a system that capitalizes on global wage disparities and could create an entirely new form of the gig economy. This development raises fundamental questions: Is Neo the solution to the skilled labor shortage in the care sector or a threat to millions of jobs in the service industry? An ingenious everyday aid or an unpredictable data-collecting monster in our living rooms? The arrival of this household robot marks a turning point, making a thorough examination of the opportunities and risks of an automated future unavoidable.

The next big thing after AI? Why tech giants are now investing billions in humanoid robots like Neo.

The announcement by the Norwegian-American robotics company 1X Technologies that it will deploy its humanoid robot Neo in private homes starting in 2026 marks a potential turning point in the history of automation. Offering a $20,000 discount or, alternatively, a subscription model of $499 per month, the OpenAI-funded company is positioning itself at the intersection of technological progress and economic restructuring. The question is no longer whether humanoid robots will move into our homes, but rather what economic disruptions and opportunities this transition will bring. Considering this development requires a nuanced perspective that captures both the immediate market dynamics and the far-reaching structural implications.

How a new business model is created

Neo is not just another tech gadget, but a meticulously engineered product that embodies the convergence of various technological advancements. Standing 165 centimeters tall and weighing a mere 30 kilograms, Neo is distinctly different from its industrial counterparts. While Tesla's Optimus Generation 2 (57 kilograms) and Figure 02 (70 kilograms) are designed for rugged production environments, 1X Technologies takes a different approach. The deliberate choice of a lightweight design, complete with a soft knit suit and cushioned shoes, signals a design philosophy that prioritizes integration over dominance. Its operating noise of 22 decibels is below the audible threshold of a modern refrigerator, making the robot an unobtrusive roommate.

The technical specifications reveal the complexity of the undertaking. Neo has hands with five fingers and 22 degrees of freedom per hand, powered by so-called Tendo Drives—high-torque-density electric motors that drive tendon-based gears. This design enables movements that are not only precise but also smooth, a crucial factor for acceptance in domestic environments. The integration of a large language model for conversations and visual intelligence with context awareness sets Neo apart from simple mechanical helpers. The robot can remember what it sees and hears and incorporate this information contextually in subsequent interactions. This learning through experience is fundamental to the vision of an adaptive household assistant.

But the real innovation lies not just in the hardware, but in the business model itself. Neo will not operate completely autonomously, at least not in the initial phase. The company has developed a hybrid model in which complex or unfamiliar tasks are supported by teleoperation from 1X employees. This remote control via VR headset allows the robot to perform tasks while simultaneously learning. Bernt Børnich, CEO of 1X, explains in an interview with the Wall Street Journal that the robot is intended to perform most tasks autonomously, but admits that this is not yet the case. This honesty is remarkable in an industry often characterized by exaggerated promises.

Market dynamics and the economics of scaling

The $20,000 price tag is not arbitrary, but rather the result of strategic considerations that delve deeply into the cost structure of humanoid robotics. A 2024 analysis by Morgan Stanley puts the current part costs for Tesla's Optimus Generation 2 at approximately $50,000 to $60,000 per unit, excluding software costs. The most expensive components are actuators in the legs and hips, advanced hands, and the waist-pelvis assembly, with no single component costing more than $9,500. This cost structure suggests that significant price reductions are possible through scaling and optimizing the supply chain.

Experts predict that the cost of humanoid robots will fall from an average of $80,000 in 2025 to around $55,000 by 2030. This decline of approximately 30 percent is attributed to increased competition, technological efficiency improvements, and economies of scale in mass production. The Chinese company Unitree demonstrates the potential of aggressive pricing strategies with its R1 model, offered for just $5,900, albeit with significantly more limited capabilities. These price wars will accelerate market development and lower the barriers to entry for consumers.

The global market for humanoid robots is poised for unprecedented growth. Research Nester forecasts a market volume of $3.14 billion in 2025, rising to $81.55 billion by 2035, representing an annual growth rate of 38.5 percent. Goldman Sachs takes a more conservative estimate of $38 billion by 2035, while the Macquarie Group believes a market of up to $3 trillion is possible. ARK Invest, in its most optimistic scenario, projects a maximum market volume of $24 trillion. These enormous ranges in forecasts reflect the uncertainty surrounding the speed and extent of technology adoption.

North America currently dominates with a market share of almost 60 percent, driven by the US as a technology leader and early adopter. However, the Asia-Pacific region, particularly China, Japan, South Korea, and India, is emerging as the engine of growth. China is pursuing an aggressive industrial strategy and has set the goal of mass-producing humanoid robots for industry and information technology by 2025. This state-led support is creating a competitive environment in which Western companies must compete with highly subsidized Chinese producers.

The Psychology of Market Acceptance

Technical feasibility is only one side of the coin. The acceptance of humanoid robots in private households depends on a multitude of psychological, cultural, and practical factors. A joint consumer study by Oliver Wyman and the industry organization GFU reveals a strong polarization in Germany. While 37 percent of respondents would welcome humanoid household robots, 36 percent categorically reject their use. The remaining 26 percent are neutral toward the technology. This three-way split is characteristic of disruptive technologies in early adoption phases.

Acceptance varies considerably according to demographic characteristics. Younger and middle-aged people are significantly more open to it than those over 55. The correlation with income is particularly interesting. Among people with an annual income below €30,000, only 50 to 60 percent can imagine using robot assistance, while for those with an annual income of at least €80,000, approval rises to 70 to 80 percent. This correlation illustrates that humanoid robots will initially remain a luxury item for wealthier households before they spread to broader segments of the population.

The biggest obstacle to purchasing a humanoid robot is the price, cited by 79 percent of respondents. Concerns about data protection and privacy follow in second place, with 59 percent. These concerns are not unfounded. Humanoid robots equipped with cameras, microphones, and sensors continuously collect data about their surroundings and the inhabitants. The potential for misuse, surveillance, or data leaks is considerable. Experiences with robotic vacuum cleaners that create detailed maps of living spaces and transmit them to manufacturer servers, often without sufficient encryption, fuel justified skepticism. Studies show that data privacy statements in this area are frequently opaque and leave users unclear about how their data is used.

Successful market penetration will depend on how manufacturers address these concerns. Transparent data privacy practices, local data processing instead of cloud-based solutions, and clear user controls will be crucial differentiators. While 1X Technologies emphasizes Neo's security and privacy-focused design in its communications, specific technical details regarding data storage and processing remain vague.

Labor markets in transition

The introduction of humanoid household robots raises fundamental questions about the future of work. The immediate impact will initially affect employees in service sectors who perform household tasks: cleaners, caregivers, domestic helpers, and similar professions. In Germany, hundreds of thousands work in these sectors, often for low wages and under precarious conditions. Humanoid robots could act as substitutes for these workers, leading to job losses, but also to changes in the nature of work for the remaining human employees.

Research on the impact of robots on labor markets presents a nuanced picture. A study by Dauth, Findeisen, Südekum, and Woessner for Germany shows that between 1994 and 2014, approximately 275,000 industrial jobs were lost due to the use of robots, not through layoffs, but rather through reduced hiring. At the same time, an equal number of new jobs were created in the service sector. Overall, total employment remained stable, unlike in the USA, where industrial workers lost their jobs en masse. German trade unions played a significant role in safeguarding jobs but were unable to secure higher wages for low-skilled workers. A large proportion of employees earned less as a result of automation, particularly those with medium qualifications, while highly skilled workers benefited.

These historical patterns cannot simply be transferred to the future of humanoid household robots, but they do offer important clues. Automation does not automatically lead to mass unemployment, but rather to a restructuring of employment. The crucial question is whether new jobs are created that can compensate for those lost, and whether workers are given the opportunity for retraining and further qualification. The current situation, however, is more complex, as several factors converge: demographic change, a shortage of skilled workers in many sectors, and technological advances in artificial intelligence.

The care sector vividly illustrates this dynamic. Germany is already experiencing a significant shortage of care workers. The German Economic Institute (IW) predicts a shortage of approximately 36,000 care workers by 2027. The Federal Statistical Office anticipates a tripling of staffing needs to 2.15 million by 2049. In a status quo scenario, up to 350,000 additional care workers would be needed by 2034. Even in the most optimistic scenario, there is a gap of 90,000 missing skilled workers. Almost half of the staff in nursing homes are over 50 years old, and 13 percent are over 60, meaning that approximately 380,000 care workers will retire in the next ten years.

In this context, humanoid robots might appear not as a threat, but as a solution. They could take over simple, repetitive care tasks, allowing human caregivers to focus on more complex, emotionally demanding activities. However, the reality is more complicated. Caregiving is more than the sum of mechanical actions; it requires empathy, situational judgment, and human warmth—qualities that robots cannot replicate in the foreseeable future. The role of humanoid robots in caregiving will therefore be supportive rather than replacement, at least for the next ten to fifteen years.

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The hidden economics of teleoperation

A particularly fascinating and simultaneously unsettling aspect of the Neo model is the role of teleoperation. While 1X Technologies markets Neo as a largely autonomous robot, the company acknowledges that human remote control is necessary in complex or unusual scenarios. This so-called expert mode allows remote operators, with user permission, to take control via VR headsets and perform tasks in real time. The economic logic behind this model is based on global wage arbitrage.

While a software engineer in Los Angeles earns an average of $9,000 per month, the salary for the same qualification in India is around $900. This discrepancy is not an isolated case but reflects structural differences in the cost of living and local wage structures. Studies show that, despite global platforms, salaries for remote work correlate strongly with the per capita income of the respective locations. A one percent increase in per capita income is associated with an average increase of 0.2 percent in remote work salaries.

This creates an attractive business model for operators of humanoid robots. Instead of having to develop full autonomy, a technically demanding and time-consuming task, they can rely on human operators in low-wage countries. These workers could earn eight to ten dollars per hour, which is above average for local standards in countries like India, the Philippines, Vietnam, or Bangladesh. At the same time, the costs would be far lower than those for workers in industrialized countries. The global market for teleoperation and remote robotics was estimated at around $502.7 million in 2024 and is projected to grow to $4.7 billion by 2035, with an annual growth rate of 25.3 percent.

The ethical and social implications of this model are significant. For workers in developing countries, remotely controlling robots represents an attractive employment opportunity. The work would be less physically demanding than many local alternatives, would offer climate-controlled work environments, and could allow for flexible working hours. At the same time, this model carries considerable risks of exploitation. The power dynamics between global platform companies and individual workers in developing countries are fundamentally asymmetrical. Without appropriate regulation and labor protection standards, conditions could become precarious. Studies of the existing gig economy and clickwork platforms show that workers often receive low wages, are given unclear instructions, and lack social security.

In high-wage countries, this model would lead to job losses, particularly in sectors with standardizable tasks. Research on global wage arbitrage in the IT services industry shows that this practice has a significant impact on global labor dynamics. The same dynamics would occur with remotely controlled robotics, only with potentially even greater reach, as it would not be limited to digital services. The vision of fully autonomous robots operating without human intervention could prove to be a longer process than optimists predict. Experts do not expect fully autonomous humanoid robots with highly developed fine motor skills to be widespread until 2030.

Investment flows and competitive dynamics

Capital markets have recognized the potential of humanoid robotics, leading to an unprecedented investment boom. According to Dealroom, global investments in humanoid robotics reached $3.2 billion in 2025, exceeding the total investment of the previous six years. 1X Technologies itself exemplifies this dynamic. The company raised $23.5 million in a Series A2 funding round led by OpenAI in 2023. This was followed in January 2024 by a $100 million Series B funding round led by EQT Ventures and joined by Samsung NEXT, Nistad Group, Sandwater, and Skagerak Capital, bringing its total funding to nearly $137 million.

Even more impressive are the latest developments. Reports indicate that 1X Technologies is seeking a new funding round of up to $10 billion, with a target valuation of at least $100 billion. If this round is successful, the company's valuation would more than twelvefold compared to its funding round in January 2024. This explosive valuation increase reflects not only confidence in the technology but also the conviction that humanoid robotics will unlock a gigantic market.

The competitive landscape is intense and diverse. Tesla, with its Optimus robot, brings expertise from automotive manufacturing and autonomous driving. The company plans to produce several thousand units by the end of 2025, potentially up to 10,000 robots. In the long term, production could be scaled to up to 100 million units per year. Elon Musk is aiming for a price below $20,000 at mass production and envisions a market volume of $10 to $20 billion annually.

Figure AI, backed by Microsoft, Nvidia, and OpenAI, has already successfully tested its Figure 02 robot at the BMW plant in Spartanburg, where it inserted sheet metal parts into the body shop. This practical testing in real-world production environments is a crucial step toward commercialization. Figure AI raised $675 million in a funding round, underscoring the company's ambitions.

Boston Dynamics, known for its four-legged Spot robot and the hydraulically powered Atlas, has secured a major customer in Hyundai. Hyundai plans to acquire tens of thousands of Atlas robots over several years and integrate them into its automotive production. The electric Atlas is expected to become commercially available in the coming years, with a price likely exceeding $100,000, making it unaffordable for households but relevant for industrial applications.

Chinese companies like Unitree Robotics are demonstrating aggressive pricing strategies. Their G1 model cost $16,000, while the new R1 model is offered for just $5,900, significantly cheaper than Western competitors. Unitree benefits from lower production costs, government support, and established supply chains. The Chinese Ministry of Industry and Information Technology has published ambitious targets for mass production by 2025 and classifies humanoid robotics as a disruptive technology.

This competitive dynamic leads to an innovation race that accelerates development and drives down prices. At the same time, challenges arise regarding standards, interoperability, and security. Market fragmentation with differing approaches, proprietary technologies, and varying quality standards could slow widespread adoption.

Societal transformation and regulatory challenges

The introduction of humanoid robots into private households is not merely a technical or economic question, but touches upon fundamental social and ethical dimensions. The vision of millions of humanoid robots living and working in homes raises questions about privacy, security, liability, and social justice. Who is liable if a robot causes damage, whether through technical failure or errors in AI control? How do we ensure that the collected data is not misused? How do we prevent the benefits of automation from accruing only to a small elite while large segments of the population face unemployment and declining living standards?

Regulatory frameworks typically lag behind technological developments. In Europe, the EU's AI Regulation offers an approach to regulating artificial intelligence, but its application to physical robots in homes remains unclear. Issues of product safety, GDPR compliance, and liability need to be addressed. In the US, regulation is more fragmented and often reactive rather than proactive.

The social upheavals could be significant. Studies show that automation has contributed to growing inequality in the past. Gains from productivity increases were concentrated among capital owners and highly skilled workers, while low- and middle-skilled workers experienced stagnant or declining real wages. The introduction of humanoid household robots could exacerbate these trends, especially if the technology is initially affordable only for wealthy households.

At the same time, the technology offers opportunities to improve quality of life. People with disabilities could gain more autonomy through robotic support. Older people could live independently in their own homes for longer, relieved of everyday tasks by robotic assistance. Dual-income families could gain time that they can use with children or for personal development. However, these positive potentials will only be realized if the technology is widely available and not reserved for a privileged minority.

The question of acceptance is also a cultural one. In Japan, a country with a high affinity for technology and demographic challenges, the willingness to integrate robots into everyday life is traditionally higher than in Western countries. Cultural differences in the perception of machines, privacy, and autonomy will influence the rate of diffusion in different markets. Companies like 1X Technologies must understand these cultural nuances and adapt their products and marketing strategies accordingly.

A glimpse into a robotized future

The development of humanoid household robots is only at the beginning of a long transformation journey. The technological challenges are enormous: advances in actuators, sensors, energy storage, machine learning, and safety systems are needed before truly autonomous, reliable, and affordable robots reach mass-market maturity. The economic promises are enticing but come with significant risks. Investors are betting billions on a future that may unfold differently than predicted.

Nevertheless, the direction is clear: Humanoid robotics will play an increasingly important role in business and society. The question is not if, but when and how. The next five to ten years will be crucial. Companies like 1X Technologies, Tesla, Figure AI, Boston Dynamics, and their Chinese competitors will bring their technologies to market maturity and achieve economies of scale in initial mass production. Prices will fall, capabilities will improve, and public acceptance will either grow or solidify into rejection.

The economic impact will be profound. Entire industries will transform, business models will become obsolete or new ones will emerge, and labor markets will be restructured. The winners will be those who invest in technology early, use it intelligently, and proactively address the regulatory and ethical challenges. The losers could be those workers in automatable jobs who have no retraining opportunities, as well as regions and countries that miss out on this technological wave.

1X Technologies' vision of establishing Neo as the first truly mass-market-ready humanoid household robot is ambitious, but not unrealistic. With a price of $20,000 or a monthly subscription of $499, the company positions itself on the cusp between luxury goods and widespread consumerism. If Neo lives up to its marketing promises, if privacy concerns can be addressed, and if teleoperation proves discreet and effective, then 2026 could indeed mark the beginning of a new era in which machines become commonplace not only in factories but also in living rooms.

The historical analogy to previous waves of automation is instructive, but not decisive. The introduction of washing machines, dishwashers, and vacuum cleaners dramatically changed housework without causing societal collapse. On the contrary, these technologies freed up time and contributed to emancipation, especially for women. Humanoid robots could have a similar effect, albeit with greater complexity due to their intelligence and autonomy.

The crucial variable is not the technology itself, but how we design, regulate, and integrate it into societal contexts. If we understand humanoid robots as tools for improving human life, if we ensure that their benefits are distributed fairly, if we empower workers to adapt through education and retraining, then this transformation could succeed. However, if we allow technology to advance unchecked, driven solely by profit motives and without regard for social consequences, then we risk disruptions that threaten the social fabric.

Neo by 1X Technologies is more than just a robot. He is a symbol of the technological, economic, and social upheavals that lie ahead. The $20,000 price tag represents not only the cost of a machine, but also the value we place on human labor and autonomy, the willingness to trade privacy for convenience, and the vision of a future in which humans and machines coexist in new constellations. Whether this future is desirable will not be decided by technology, but by us as a society through the choices we make today and in the years to come.

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