Small Models 'Dead', Physical AI Rises?

autonews.gasgoo.com Jun 2, 2026

Small Models ‘Dead’, Physical AI Rises?

Curated by Shubham · TechCapsules · Jun 2, 2026

AI-summarised brief · reviewed before publication

Zhou Guang, CEO of DeepRoute.ai, stated that small models in the smart driving industry have hit a ceiling and are no longer effective. He described the "seesaw effect" where tuning a system for one location degrades performance in another. Zhou emphasized the need for a "cognitive system" with human-like judgment and generalization for autonomous driving to evolve. DeepRoute.ai's solution is a large model paradigm with a foundational model having 40 billion parameters, which has shown commercial value with a 2.1 times year-on-year market share surge in 2025. The company aims for over 1 million vehicle deliveries in 2026.

💡 Why It Matters

· Large models can drive significant market share gains, as seen in DeepRoute.ai's 24% share of the third-party NOA market.
· Advanced cognitive systems enable autonomous vehicles to make holistic judgments, a crucial step towards reliable and safe everyday use.

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