Richtech Robotics Inc (NASDAQ:RR) shares climbed 14.2% in premarket trading Tuesday following disclosure of a technical collaboration with Microsoft (NASDAQ:MSFT). The work is being conducted within the Microsoft AI Co-Innovation Labs and is aimed at adding agentic artificial intelligence capabilities to Richtech's deployed robotic systems.
Under the agreement, Richtech upgraded its flagship ADAM robot with adaptive intelligence delivered via Azure AI. The enhancements target a combination of sensory and decision-making abilities - notably vision, voice, and autonomous reasoning - to help the robot operate with greater situational understanding in real-world, physical environments.
Company materials said the new capabilities move ADAM beyond simple task execution to a level of contextual and operational awareness. ADAM has been given additional layers of context awareness that allow it to ingest and act on signals such as time of day, weather conditions, and store promotions. Those inputs are intended to let the robot tailor responses to customer preferences and keep vision-based performance stable during periods of peak demand.
On the collaboration, Wayne Huang, Founder and Chief Executive Officer of Richtech Robotics, said: "Our collaboration with Microsoft reflects a shared focus on applying advanced AI to practical, real-world use cases," and added, "By working closely with the Microsoft AI Co-Innovation Labs, our teams were able to jointly develop and deploy intelligent capabilities that strengthen reliability, enhance customer interactions, and support scalable automation across physical environments."
While ADAM is presented as the visible example of the joint work, the companies have noted that the agentic AI techniques can extend across multiple settings where real-time perception and dependable operation are important. Examples cited by the company include logistics, hospitality, and manufacturing environments.
Richtech emphasized that combining on-premises robotic hardware with cloud-based AI models enables the firm to apply software-driven intelligence across its product portfolio without substantial new hardware investment. The approach is described as permitting upgrades through software and cloud integration rather than requiring large capital outlays for redesigned physical platforms.
The market reaction in premarket trading reflected investor interest in the collaboration and the potential for broader application of the agentic capabilities, with the stock moving higher ahead of the open.
Sectors potentially affected include robotics and automation providers, cloud AI and enterprise software, logistics and fulfillment operations, hospitality technology, and manufacturing automation.