ROBOTICS | XPENG raises $900M for humanoid robot business
The investment will fund research and development, Physical AI model training, real-world data generation, mass-production facilities and commercial expansion of XPENG’s robotics business in China and overseas markets.
Chinese artificial intelligence mobility company XPENG has raised more than $900 million for its robotics business at a valuation exceeding $6.3 billion, as the company prepares to enter the Philippine market in September.
The funding round was led by IDG Capital, with participation from Gaorong Ventures and strategic support from Tencent and Alibaba. XPENG said the transaction is the largest single-round private financing to date in China’s embodied AI industry.
The investment will fund research and development, Physical AI model training, real-world data generation, mass-production facilities and commercial expansion of XPENG’s robotics business in China and overseas markets.
XPENG’s robotics unit is developing IRON, a humanoid robot designed to perform tasks in environments built for people. The company said IRON has 76 degrees of freedom across its body and 21 in each hand.
IRON is powered by three XPENG Turing AI chips capable of delivering up to 2,250 trillion operations per second of onboard computing power. XPENG said this enables the robot to process information and perform complex tasks with less reliance on remote operation.
The company expects IRON to enter mass production by the end of 2026, initially for deployment at XPENG stores and campuses. Its official launch and deliveries in China and overseas markets are planned for 2027.
XPENG will retain controlling ownership of the robotics business after the financing round, which will continue to be consolidated into the group’s financial statements.
He Xiaopeng, chairman and CEO of XPENG, said the company has spent the past 12 years developing its own technologies, including AI chips, infrastructure and physical-world foundation models.
“Over the past 12 years, XPENG has remained committed to full-stack in-house R&D, building a solid technological foundation for the Physical AI era across our physical world foundation model, Turing AI chips, and AI infrastructure. This has enabled us to pioneer a new phase of mass production and commercial deployment for advanced humanoid robots,” Xiaopeng said.
He said the new funding would provide resources to expand the robotics business and attract Physical AI talent.
XPENG’s broader AI strategy covers intelligent electric vehicles, humanoid robots, aerial mobility and smart manufacturing. Physical AI refers to systems that allow machines to perceive their surroundings, make decisions and respond to real-world conditions.
The company is scheduled to enter the Philippine market in September with the XPENG X9 seven-seater and XPENG L03 SUV coupé. The vehicles will be the company’s initial local products showcasing its AI-based mobility technology.
XPENG said its AI technology is designed to allow its vehicles to understand their surroundings, respond to driving conditions and interact with users.
The company, founded in 2014 and headquartered in Guangzhou, develops electric vehicles, advanced driver-assistance systems, intelligent in-car operating systems and other vehicle technologies in-house. It is listed on the New York Stock Exchange and Hong Kong Exchange.
Full disclosure: All news articles published on the TechSabado website are written by human journalists, unless otherwise specified. Final text editing is also performed by human editors, with artificial intelligence (AI) used only to assist with additional grammar and style guide corrections..
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