XPeng raises over $900M to accelerate Physical AI deployment

XPeng, a Physical AI company headquartered in Guangzhou, China, has announced that its robotics business has entered into share purchase agreements with multiple investors, raising over USD 900 million at a post-money valuation of over USD 6.3 billion.  

This round was initiated by global investors, led by IDG Capital, with participation from Gaorong Ventures and support from Tencent and Alibaba as strategic investors, according to a press release. 

As a key pillar of XPeng’s Physical AI strategy, XPeng’s next-generation IRON is an advanced humanoid robot combining highly human-like form and movement with AI-driven intelligence. It is being developed as an advanced general-purpose humanoid robot platform, capable of supporting a broad range of applications and continuously improving through self-reinforcement in the real world, the press release said.  

“XPeng’s humanoid robot exemplifies the current standard of excellence in China's humanoid robotics industry and possesses the competitive strength to succeed in global markets,” IDG Capital said. “XPeng has established a comprehensive, integrated full-stack capability across edge AI processors, Physical AI foundation models, and complete robotic systems, underpinned by industry-leading on-device compute, training compute, and a robust high-quality data flywheel. 

“With its highly anthropomorphic form factor and automotive-grade standards for safety and quality, XPeng IRON is built for commercial deployment,” Gaorong Ventures said. “It serves not only as an intuitive, human-centered interface but also as a critical gateway to real-world data, powering a self-reinforcing ‘Production–Data–Models–Deployment’ flywheel.” 

The latest funding will primarily support software and hardware R&D for XPeng’s robotics business, the training and iteration of its Physical AI models, high-quality data generation, the development of end-to-end mass production facilities, and global commercial expansion. XPeng IRON is expected to enter mass production by the end of 2026, with initial commercial deployment at XPeng’s stores and campuses, before officially launching and beginning deliveries in China and overseas markets in 2027, the company said.

“I believe the strong capital backing from leading global and strategic investors provides the resources needed to accelerate the growth of our robotics business, while strengthening our ability to attract more world-class Physical AI talent,” He Xiaopeng, Chairman & CEO of XPeng, said. “IRON brings together a highly human-like design, advanced AI intelligence, built to the highest standards of safety and quality. Our ambition is for IRON to become a trusted partner for people and a meaningful part of everyday work and life.”