Xpeng's robotics unit valued at over $6.3 billion after record funding round

Chinese electric vehicle manufacturer Xpeng announced on Monday that its robotics unit has raised over $900 million in its inaugural funding round, establishing a new benchmark for private financing within China's embodied AI industry. Led by IDG Capital and accompanied by strategic investors Tencent and Alibaba, the financing puts the robotics division's value at more than $6.3 billion.

The funds will be allocated towards the development of robotics hardware and software, training and enhancement of physical AI models, data collection, the establishment of mass-production facilities, and global expansion. Xpeng intends to commence mass production of its humanoid robot, Xpeng IRON, by the end of the year, with initial deployments at retail stores and industrial campuses.

Commercial sales and deliveries in China and international markets are projected to commence in 2027. In June, Xpeng's CEO, He Xiaopeng, declared his personal leadership of the robotics business as the company, recognized as one of the foremost automaker-backed developers of humanoid robots, aims for mass production.

The robotics domain has gained significant attention from automakers, who perceive similarities with the advancement of intelligent vehicles, including expertise in sensors, software, batteries, and supply-chain management. In April, TARS Robotics, a Shanghai-based embodied AI startup, secured over $455 million in a pre-A funding round, marking it as the largest single private financing in China's embodied AI sector.