According to XPeng, the funding represents a new record for a single private financing round in China’s embodied AI sector. The round was led by IDG Capital, with strategic backing from technology giants Tencent and Alibaba.
The investment has placed XPeng’s robotics business at a valuation of more than $6.3 billion, the automaker said in a statement.
Gaorong Ventures, an early investor in autonomous driving company Momenta and humanoid robot startup AgiBot, also participated in the funding round.
XPeng said the fresh capital would be used to accelerate the development of robotics hardware and software, as well as the training and refinement of physical AI models. The company also plans to invest in high-quality data collection, establish end-to-end mass-production facilities and expand its robotics operations globally.
The fundraising comes as XPeng steps up efforts to turn its humanoid robot project into a commercial business. The company has set a target of producing 1,000 units of its IRON humanoid robot every month by the end of the year.
Initial deployments of the robots are expected to take place at XPeng’s retail stores and industrial campuses. The company plans to begin commercial sales and deliveries in China and overseas markets in 2027.
XPeng CEO He Xiaopeng announced in June that he would personally take charge of the robotics business, signalling the importance the company places on the emerging sector as it works towards mass production.
The push also reflects a broader trend among global automakers, particularly in China, to expand beyond conventional vehicles and invest in humanoid robotics. Automakers believe their existing expertise in areas such as sensors, software, batteries, manufacturing and supply-chain management could give them an advantage in developing and commercialising intelligent robots.
The sector has attracted significant investor interest in recent months. In April, Shanghai-based embodied AI startup TARS Robotics raised more than $455 million in a pre-Series A funding round. At the time, the deal was described as the largest single private financing in China’s embodied AI industry.
XPeng’s latest fundraising has now surpassed that figure, highlighting the rapidly increasing financial backing for companies seeking to develop robots capable of interacting with and operating in real-world environments.