Shanghai – September 23, 2026 -- PATEO (02889.HK) has signed a strategic Memorandum of Understanding with Arm to jointly develop physical AI applications for the automotive sector, targeting next-generation perception- and interaction-driven computing workloads for vehicles.
PATEO's AI revenue jumps 588.6% year-on-year in first half of 2026
The company reported approximately RMB 209 million in AI-related revenue for H1 2026, a 588.6% increase from the prior-year period, as its physical AI initiatives move from proof-of-concept to scaled deployment.
Arm and PATEO target expanded in-vehicle AI workloads beyond infotainment
Under the MoU, the two companies will explore computing solutions that extend in-vehicle AI beyond voice assistants and navigation into multimodal perception, cockpit-driving integration, real-time interaction, and onboard AI agents. Arm supplies its automotive computing platform and ecosystem, while PATEO contributes Tier 1 capabilities spanning intelligent cockpits, connected vehicle technology, and an integrated software-hardware-chip-cloud stack.
PATEO cites edge computing shift as central to its "AI-Defined Vehicles" strategy
Liang Chen, Vice President of PATEO, said the company views open ecosystem collaboration as essential to accelerating commercialization of physical AI technologies, noting that Arm's compute platform is already widely deployed across the automotive industry with broad software ecosystem support.
PATEO has built its development philosophy around what it calls "AI-Defined Vehicles," drawing on prior mass-production experience with intelligent cockpit domain controllers to support end-to-end deployment of physical AI solutions across technology development, platform integration, and large-scale production.