XPeng’s robotics unit has raised more than $900 million in its first funding round, valuing the business at over $6.3 billion, a record for a single private financing round in China’s embodied AI sector.
The funding will go toward humanoid robot R&D, Physical AI model training, data collection, mass production facilities, and global expansion.
The company expects its humanoid robot Iron to enter mass production by the end of 2026, starting with applications in XPeng stores and industrial parks, before launching in China and overseas markets in 2027.
XPeng is betting that humanoid robots could become a bigger business than cars, with CEO He Xiaopeng predicting higher per-unit gross profit than EVs once robots reach commercialization.