Humanoid robots have been generating excitement for years, fueled by projects such as Tesla's Optimus and Boston Dynamics' Atlas. But behind the attention, the technology is making meaningful progress.
Robots are becoming more physically capable, while advances in artificial intelligence could eventually allow them to learn a wide range of complex tasks. That potential is attracting a growing number of companies — including several major Chinese automakers.
Xpeng is making one of the biggest bets. Its robotics unit recently raised more than $900 million at a valuation above $6.3 billion. The company described the funding round as the largest single private financing in China's embodied AI sector.
Other Chinese automakers are moving in the same direction. Chery's robotics unit AiMOGA is reportedly preparing for an IPO, while BYD recently introduced a humanoid robot called Xiao Di. Changan, GAC, Li Auto, SAIC, and Seres are also developing humanoid robots.
Xpeng appears to be following Tesla's strategy particularly closely. The company has invested heavily in autonomous driving and is now expanding into humanoid robotics as competition and thin profit margins make the automotive business increasingly challenging.
Xpeng founder He Xiaopeng and co-president Brian Gu reportedly invested around $100 million of their own money in the company's latest robotics fundraising round.
The centerpiece of Xpeng's robotics ambitions is Iron, a human-shaped robot designed for commercial use. Chinese automakers may have an advantage because of their experience with large-scale manufacturing, supply chains, batteries, motors, and other hardware.
The bigger question is whether they can match Tesla and other competitors in artificial intelligence and software.
The race extends far beyond China. Companies including Agility Robotics, Apptronik, and Figure are also working toward large-scale commercial deployment of humanoid robots.
Hyundai-owned Boston Dynamics is moving closer to factory use as well. Hyundai plans to introduce Atlas robots at its Georgia manufacturing facility and eventually use them for jobs such as organizing and moving automotive parts.
Other automotive companies are entering the market too. Mobileye acquired humanoid robot startup Mentee Robotics for $900 million, while Rivian has launched its own robotics venture.
As competition intensifies, automakers are increasingly treating robotics as more than an experimental technology. For companies facing intense competition and shrinking margins in cars, humanoid robots could become an important new source of growth.