How US$900m Funding Will Shape XPENG’s Robotics Vision

XPENG’s robotics division secures over US$900 million in funding, achieving a post-money valuation exceeding US$6.3 billion and accelerating the deployment of physical AI. Credit: XPENG

Sven De Smet, Head of Brand & Marketing at XPENG Europe, describes the Series A funding round, valued at over US$900 million, as a pivotal moment for the global rollout of humanoid robotics.

XPENG, a leader in physical AI, has executed share purchase agreements to raise more than US$900 million for its robotics subsidiary. This transaction represents the largest single-round private capital raise in China’s embodied AI sector to date.

The investment round establishes a post-money valuation of over US$6.3 billion for the robotics unit. XPENG retains controlling ownership, and the subsidiary will continue to be consolidated into the Group’s financial statements.

Headed by global investment firm IDG Capital, the round also features participation from Gaorong Ventures, with strategic backing from Tencent and Alibaba.

Leading physical AI and humanoid robotics companies

• Tesla
• Figure AI
• Boston Dynamics
• Apptronik
• Agility Robotics
• Unitree Robotics

The capital raised by XPENG will accelerate research and development in both software and hardware, alongside iterations of its physical AI foundation models. Funds are also allocated for high-quality data generation and the establishment of end-to-end mass production facilities.

International expansion is another primary objective for the newly secured capital.

Sven De Smet, XPENG Europe Head of Brand & Marketing, states: “This funding marks a turning point for humanoid robotics, shifting the narrative from impressive demonstrations to reliable, scalable deployment.”

Sven De Smet, XPENG Europe Head of Brand & Marketing. Credit: XPENG

Humanoid robotics capabilities

The next-generation XPENG IRON platform, a core component of XPENG’s physical AI strategy, is being developed as an advanced general-purpose humanoid robot. It integrates a human-like form with AI-driven intelligence designed to meet high safety standards.

The robot utilizes a proprietary fully enclosed flexible lattice structure to balance safety and aesthetics. It operates with 76 degrees of freedom across its body and 21 in each hand.

An in-house AI-native hardware platform supports the architecture, including custom chips, controllers, motion modules, and dexterous hands. Computing power is provided by three Turing AI chips, delivering up to 2,250 TOPS of effective computing power.

Our ambition is for IRON to become a trusted partner for people and a meaningful part of everyday work and life

XPENG Chairman & CEO He Xiaopeng

This processing capacity enables physical AI foundation models to run directly on the machine for autonomous task execution. The design facilitates low-latency inference while enhancing data security, eliminating the need for remote operation.

Discussing the funding, Sven adds: “It gives XPENG the resources to bring IRON into real-world settings, combining our physical AI models with in-house hardware and automotive-grade manufacturing to make embodied intelligence useful, safe and accessible globally”

Commercialisation strategy and real-world deployment

XPENG leverages its smart EV manufacturing infrastructure to apply automotive-grade quality standards to humanoid robotics production.

The physical hardware collects behavioral data from everyday human activities to train its systems. This real-world integration creates a data-model-application flywheel, accelerating learning and functional adaptation.

Mass production of the XPENG IRON is scheduled for completion by the end of 2026, with initial deployment planned for XPENG stores and corporate campuses.

Deliveries across China and international markets are expected to begin in 2027.

IDG Capital notes: “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.

IDG Capital

Key partners

• IDG Capital: A global investment firm leading the Series A round, focusing on supporting full-stack technology and international expansion.
• Gaorong Ventures: A venture capital firm participating in the round, backing the industrialisation and manufacturing capabilities of the robotics business.
• Tencent: A technology and internet company providing strategic investment support to advance XPENG’s Physical AI ecosystem.
• Alibaba: A technology group specialising in cloud computing and ecommerce, supporting XPENG as a strategic investor in its commercial growth.