Chinese automaker Xpeng (9868) said on Monday its robotics unit had raised more than US$900 million (HK$7.02 billion) in its first funding round, setting a new record for a single private financing in China's embodied AI sector.
The funding round, led by IDG Capital and backed by strategic investors Tencent and Alibaba, values the robotics business at more than US$6.3 billion, Xpeng said in a statement.
Gaorong Ventures, an early investor in autonomous driving company Momenta and humanoid robot startup AgiBot, also participated in the funding.
The proceeds will be used to develop robotics hardware and software, train and refine physical AI models, collect high-quality data, build end-to-end mass-production facilities, and support global expansion, the company said.
Xpeng has aimed to reach a monthly output of 1,000 units of its IRON humanoid robot by the end of the year, with initial deployments at its retail stores and industrial campuses. Commercial sales and deliveries in China and overseas markets are scheduled to begin in 2027.
CEO He Xiaopeng announced in June that he would personally lead the robotics business as the electric vehicle maker, seen as one of the leading automaker-backed developers of humanoid robots, pushes towards mass production.
The robotics sector has attracted growing interest from automakers, which see parallels with intelligent vehicle development, including expertise in sensors, software, batteries and supply-chain management.
In April, Shanghai-based embodied AI startup TARS Robotics raised more than US$455 million in a pre-A funding round, a deal that was then billed as the largest single private financing in China's embodied AI sector.
Reuters
