XPeng, a China-based Physical AI company, has raised over $900m for its robotics business, achieving a post-money valuation of more than $6.3bn.
The fundraising round was described as the largest single-round private capital raise in China’s embodied AI industry to date.
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XPeng said that share purchase agreements were entered with multiple investors, led by IDG Capital and joined by Gaorong Ventures. Tencent and Alibaba also participated as strategic investors.
The capital brings what XPeng called valuable strategic resources to accelerate development of its robotics ecosystem and expand its real-world applications.
The robotics business is a key part of XPeng’s Physical AI strategy and is focused on the next-generation IRON humanoid robot platform. IRON is designed as a general-purpose humanoid robot, combining human-like form and movement with AI-driven intelligence and intended to meet high safety standards.
XPeng said the robot is being developed to support a broad range of applications and improve continuously through real-world self-reinforcement.
The company develops its full-stack Physical AI architecture and all key components internally. This includes Turing AI chips, controllers, motion modules and dexterous hands, covering both hardware and software.
The IRON humanoid robot features a fully enclosed flexible lattice structure, intended to balance aesthetics and safety. It has 76 degrees of freedom across the body and 21 in each hand, which XPeng describes as industry-leading for dexterity and mobility.
XPeng said it is leveraging its capabilities from intelligent electric vehicle (EV) research and manufacturing to bring automotive-grade quality standards and mass production capacity to robotics.
On the intelligence side, IRON is powered by three Turing AI chips delivering up to 2,250 TOPS of computing power. This allows deployment of XPeng’s Physical AI foundation model directly on the robot, enabling autonomous performance of complex tasks without remote operation, with low-latency inference and data security.
As IRON is deployed and generates more behavioural data, XPeng expects further adaptability and performance improvements.
IDG Capital said: “The embodied AI industry stands at a pivotal juncture, transitioning from technical breakthroughs to scalable manufacturing and commercial deployment.
“XPENG’s humanoid robot exemplifies the current standard of excellence in China’s humanoid robotics industry and possesses the competitive strength to succeed in global markets.
“XPENG has established a comprehensive, integrated full-stack capability across edge AI processors, Physical AI foundation models, and complete robotic systems, underpinned by industry-leading on-device compute, training compute, and a robust high-quality data flywheel.”
XPeng stated the funding establishes a market valuation for its robotics business, diversifies capital sources for long-term investment, and strengthens incentive mechanisms for senior executives and key talent.
The company will retain controlling ownership, and the robotics business will continue to be consolidated into the group’s financial statements.
The proceeds will be used to support software and hardware research and development, training and iteration of Physical AI models, data generation, end-to-end mass production capabilities, and global commercial expansion.
XPeng expects IRON to enter mass production by the end of 2026, with initial commercial deployment at the company’s stores and campuses and official launches and deliveries in China and overseas markets in 2027.
XPENG chairman and CEO He Xiaopeng said: “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.
“I believe the strong capital backing from leading global and strategic investors provides the resources needed to accelerate the growth of our robotics business, while strengthening our ability to attract more world-class Physical AI talent.
“IRON brings together a highly human-like design, advanced AI intelligence, built to the highest standards of safety and quality. Our ambition is for IRON to become a trusted partner for people and a meaningful part of everyday work and life.”
