Alibaba Leads $100M Funding Round in Chinese Humanoid Robot Startup X Square Robot

Alibaba Drives $100 Million Investment in X Square Robot Amid Rising Humanoid Robotics Race

Alibaba Cloud has led a $100 million financing round in Shenzhen-based humanoid robotics startup X Square Robot, marking the company’s eighth funding round since its December 2023 inception. Chief Operating Officer Yang Qian confirmed to CNBC that total capital raised now stands at roughly 2 billion yuan ($280 million).

Other investors participating include HongShan (formerly Sequoia Capital China), Meituan, Legend Star, Legend Capital, and INCE Capital. The startup declined to disclose its current valuation.

Advancing Embodied AI for Autonomous Robots

Venture capital interest in humanoid robots has surged as generative artificial intelligence integration is expected to revolutionize machine-human interaction. Yang emphasized the necessity for robots capable of autonomously executing complex tasks, noting that traditional robotics have been limited to simple actions like object grasping. She highlighted the role of AI in expanding robotic functionalities.

In a significant development, X Square Robot introduced Wall-OSS, an open-source foundation model tailored for embodied AI. This model enables developers and the public to access and utilize the underlying code freely. Embodied AI refers to AI systems integrated with physical hardware such as robots and autonomous vehicles. The startup claims Wall-OSS is the first open-source AI model dedicated specifically to robotics, anticipating the advent of “robotic butlers” within five years, though this projection remains unverified.

Technological Outlook and Market Positioning

Yang acknowledged that embodied AI lags behind generative AI advancements exemplified by models like ChatGPT 3.5, projecting that robotics AI will require at least another year to reach comparable sophistication. She also noted the absence of standardized benchmarks for embodied AI progress.

While X Square Robot leverages Nvidia chips for computing, many robotic functions utilize less powerful automotive-grade chips sourced domestically. The startup recently unveiled its Quanta X2 robot, equipped with tactile-sensitive hands capable of perceiving subtle pressure changes and a mop attachment enabling 360-degree cleaning.

Commercialization and Future Prospects

X Square Robot is currently generating revenue through sales to educational institutions, hotels, and retirement homes, with plans to expand these channels next year. The company is preparing for an initial public offering in 2026, though the listing venue remains undecided. International discussions are underway with potential customers in Japan and Singapore.

The current market price for humanoid robots varies widely, with research firm Humanoid Guide citing approximately $80,000, while competitors like Unitree offer models at around $16,000, albeit with unclear capabilities. Yang emphasized that for consumer adoption, prices need to decrease to roughly $10,000, primarily through hardware cost reductions—a target she believes feasible within three to five years.