More than $900 million raised: Successful investment round for XPENG Robotics

• Largest single private financing in China’s “Physical AI” sector

• Initiated by four world-leading investors: IDG Capital, Gaorong Ventures, Tencent and Alibaba

• Accelerated research, development and mass production of humanoid robots

Guangzhou/Munich, 26. August 2026 – XPENG is advancing the mass production of humanoid robots: As part of an investment round, the high-tech company has now raised more than US$900 million for its robotics division – the largest single private capital raise to date in China’s “Physical AI” sector. XPENG Robotics is currently valued at more than US$6.3 billion, which is also a new industry record.

The financing round was initiated by world-leading investors: Led by IDG Capital, Gaorong Ventures participated, while Tencent and Alibaba supported the round as strategic investors. The exceptionally high investment volume in this first round and the so-called post-money valuation underscore the strong confidence investors have in XPENG’s leadership in “Physical AI”, its technology roadmap, its ability to scale production and its long-term commercial potential. The capital injection also accelerates the (further) development of the XPENG robotics ecosystem and its application in the real world.

Robot brings “Physical AI” to life

The XPENG IRON embodies the high-tech company’s “Physical AI” strategy. The next generation of the humanoid robot features an extremely realistic, human-like design and a wide range of anthropomorphic movements thanks to AI-driven intelligence. As an advanced, universally deployable robot platform that meets the highest safety standards, IRON can support a variety of applications and continuously improve through self-reinforcing learning.

To achieve this, XPENG uses a fully integrated, self-developed technology stack that includes both hardware and software and covers all core layers of a robot – from its physical architecture and drive system to its AI and control systems.

The human-like form and corresponding design use a proprietary, fully enclosed and flexible lattice structure that balances aesthetics and safety. With 76 degrees of freedom (DOF) across the body and 21 in each hand, IRON is industry-leading in dexterity and mobility. These capabilities are based on an AI-native hardware platform that XPENG has designed and developed independently together with other core components such as chips, control systems and motion modules. In doing so, the company draws on its expertise in the research and development of smart electric vehicles as well as manufacturing: automotive quality standards and scalable mass production are being transferred to humanoid robotics.

XPENG IRON is powered by three “Turing AI” chips, delivering effective computing power of up to 2,250 TOPS. This makes it possible to run the company’s in-house “Physical AI” foundation model directly on the robot, enabling IRON to perform even complex tasks autonomously and without remote control – with low latency and enhanced data security. The human-like hardware platform also gives XPENG a natural advantage in scaling and using different types of behavioral data generated by everyday human activities: IRON can quickly adapt to applications and environments designed for humans. Real-world use helps IRON learn, improve and move into new scenarios.

Pathfinder for mass production

The financing round creates a clear market valuation for XPENG’s robotics business. Despite the investment, XPENG retains a majority stake in its robotics division, which will continue to be included in the consolidated financial statements.

The diversified capital enables long-term investment in the full-stack development of “Physical AI”. It will primarily support research and development of software and hardware for XPENG Robotics, training and iteration of the “Physical AI” models, generation of high-quality data, the establishment of end-to-end production facilities and global commercial expansion. XPENG IRON is expected to enter mass production by the end of the year. It will initially be deployed on the XPENG campus before the official market launch and delivery in China and other markets in 2027.

“Over the past twelve years, XPENG has consistently dedicated itself to the research and development of an in-house full-stack solution, thereby creating a solid technological foundation for the era of physical AI – from our foundation model for the physical world to the ‘Turing AI’ chips and AI infrastructure. This enables us to enter a new phase of mass production and commercial deployment of advanced humanoid robots,” explains He Xiaopeng, Chairman and CEO of XPENG. “I am convinced that the financial support from world-leading and strategic investors will provide the necessary resources to accelerate the growth of our robotics business and strengthen our ability to attract more world-class talent in the field of physical AI. IRON combines an extremely human-like design with advanced AI intelligence while meeting the highest safety and quality standards. Our goal is to make IRON a trusted partner for people and a meaningful part of work and everyday life.”