To The Moon

Moving from Fiction to Reality: $Robo.ai Inc(AIIO)$ Leverages Jidu to Deliver an Immediately Verifiable Report Card to the Capital Markets

The endgame for AI is manufacturing. By choosing to "descend to earth" and embrace the burdensome manufacturing sector at this juncture, $Robo.ai Inc(AIIO)$ signals its commitment to a long-term strategy.

Robo.ai's Participation in Jidu Restructuring: From Software Provider to Vehicle OEM

Core Information: Robo.ai $Robo.ai Inc(AIIO)$ , by participating in the restructuring of Jidu (Ji Yue), acquires full vehicle manufacturing capabilities and physical assets, completing its transformation from an AI technology supplier to an OEM capable of vehicle production.

1. Acquisition Background: Filling the "Physical Body" as the Optimal Solution

If Robo.ai opted to build its own factory, it would entail at least a 3-5 year timeframe and tens of billions in sunk costs. Many investors underestimate the barriers to entry in automotive manufacturing while overestimating the viability of pure-play software companies.

$Apple(AAPL)$ "Project Titan" serves as the most painful case study: a decade-long, $10 billion attempt to build a car from scratch, ultimately terminated in 2024 due to its inability to resolve complex manufacturing engineering challenges.

In contrast, Xiaomi Auto's ability to deliver results within three years hinged on its optimal integration of established industrial resources.

Through Jidu's restructuring, Robo.ai has effectively chosen a more efficient path—direct inheritance:

• $GEELY AUTO(00175)$ SEA Architecture: A globally leading EV platform, ensuring Ji Yue's mechanical fundamentals are top-tier from day one, coupled with $BIDU-SW(09888)$ autonomous driving capabilities.

• Mature Supply Chain System: In industrial manufacturing, managing 1,000 suppliers proves far more challenging than writing 1,000 lines of code—a milestone Jidu has already achieved.

This acquisition grants Robo.ai an "entry ticket" to high-end manufacturing at minimal time cost, enabling it to avoid Apple-style project abandonment risks while achieving Xiaomi-style production scale. This injection of physical assets serves as the most potent counterargument to market bubble theories.

2. Acquisition Logic: Middle Eastern Capital's "Shift from Virtual to Real"—Why Jidu?

Robo.ai's prior core businesses centered on AI scheduling systems and financial services conduits (Zand Bank), but lacked hardware deployment scenarios. Post-restructuring, it will acquire:

• Manufacturing Foundation: Jidu's full-vehicle platform built on Geely's SEA architecture and its established supply chain. Compared to greenfield construction (see Apple's terminated car project), integrating existing capacity shortens timelines and reduces capital outlay.

• Technical Assets: Jidu's mass-produced vehicle models and the applied implementation of Baidu Group's Apollo autonomous driving technology.

Middle Eastern Capital Perspective: The Abu Dhabi capital behind Robo.ai is seeking physical asset allocation in new energy, akin to CYVN Holdings' investment in NIO, but securing control rights through restructuring represents strategic integration at the industrial chain level—a perfect "complementary partnership" where Ji Yue provides the industrial foundation and intelligent driving technology while Robo.ai provides capital and access to Middle Eastern markets.

This trend has long been evident: Abu Dhabi-based CYVN Holdings' multi-billion dollar strategic investment in $NIO Inc.(NIO)$ follows identical logic—Middle Eastern capital covets China's new energy technology and manufacturing capabilities to hedge against the petroleum era's conclusion. However, this transaction is more thorough than CYVN's NIO investment, as Robo.ai achieves a "controlling stake acquisition" through restructuring, not merely a financial investment.

3. Business Model Evolution—Physical Closed Loop: The Vehicle-Money-Data Triangle

Post-acquisition, Robo.ai may establish a "vehicle + finance + data" business structure:

• Hardware Carrier: Ji Yue vehicles serve as terminals, providing data access and usage scenarios, responsible for physical-world mobility, energy consumption, and data collection.

• Financial Tools: Zand Bank conducts vehicle-related asset management and payment services. Arkreen's DePin serves as a tool, handling not only insurance premiums but also vehicle RWA (Real World Asset) financing and M2M (Machine-to-Machine) automatic payments.

• Scheduling System: The Robo.ai system acts as the brain, dispatching vehicles to the most profitable locations, with AI algorithms optimizing vehicle operational efficiency.

Without Jidu vehicles, all finance and AI would be water without a source. Thus, this acquisition isn't about addition but filling the shortest and most critical plank in the barrel. The prerequisite for this closed loop is mass production capability; without a manufacturing entity, the services above lack a foundation for large-scale deployment.

"When concept becomes capacity, premium becomes value." Robo.ai's decision to "descend to earth" and embrace the burdensome manufacturing sector at this moment perhaps signals its preparation for a long-term approach.

Risks and Points to Observe:

• The vehicle business must confront core manufacturing challenges including market competition, production ramp-up, and cost control.

• Integrating existing teams and supply chains requires management alignment.

• From concept to quarterly delivery, performance will be tested against conventional manufacturing metrics.

Conclusion: This transaction transforms Robo.ai from a software service provider into an entity with full vehicle production capabilities. Going forward, monitoring its manufacturing operational efficiency and market performance will be essential.