Since last year, investors have shown increasing interest in AI-driven robot startups, which utilize generative AI technology to enhance robots' abilities in learning complex tasks. Industry experts note that the challenge of establishing new Large Language Model (LLM) companies has shifted investor focus towards robotics.
Recently, reports suggest that Physical Intelligence (PI, Financial), a robotics startup, is aiming for $300 million in funding at a valuation of approximately $2 billion. Although the San Francisco-based company has yet to release its first product, it has received multiple investment offers.
Founded in February in Delaware, PI was established by former Google DeepMind researcher Karol Hausman, ex-Google AI researcher Chelsea Finn, computer science professor Sergey Levine, and investor Lachy Groom. The company focuses on enabling robots to perform precise tasks, such as folding clothes.
In March, just a month after its formation, PI raised $70 million in funding at a valuation of around $400 million, with participation from Sequoia Capital, OpenAI, Khosla Ventures, Lux Capital, among others.
Investment in AI-driven robotics has been booming. For instance, in February, humanoid robot developer Figure secured $675 million, attaining a valuation of $2.6 billion. In May, The Bot Co, specializing in domestic robots, raised $150 million, and in July, PI competitor Skild gathered $300 million, reaching a valuation of $1.5 billion.
Many robot startups are now collaborating with major corporations, often by licensing their patents. In August, according to sources, Amazon hired the founder and a quarter of the team from industrial robotics company Covariant, acquiring model licenses for at least $500 million.
Standard Bots CEO Evan Beard mentioned purchasing patents, trademarks, client lists, and software from startup Ready for its robot control software. Beard emphasized the growing challenge of launching new LLM companies, pushing the focus towards robotic technology for rapid investment and potential early success.
