XPENG has secured over $900 million in funding for its robotics unit at a $6.3 billion valuation to scale its IRON humanoid robot platform.

Chinese electric vehicle maker XPENG has raised over $900 million to advance its physical AI and humanoid robotics business. The funding round, led by IDG Capital with participation from Gaorong Ventures, Tencent, and Alibaba, values the robotics unit at $6.3 billion. XPENG stated this is the largest single-round private capital raise in China’s physical AI industry to date.

Development and Production Plans

The capital will support R&D for software and hardware, including the iteration of physical AI models and the construction of mass production facilities. XPENG intends to apply manufacturing processes from its electric vehicle business to its robotics line to achieve automotive-scale output. The company plans to begin mass production of the IRON robot by the end of 2026, with initial deployment in its own facilities followed by customer deliveries in 2027.

IRON Robot Specifications

The IRON humanoid robot features 76 degrees of freedom across its body, including 21 in each hand. The platform is powered by three in-house Turing AI chips, providing up to 2,250 TOPS of computing power. This hardware allows the robot to run its foundation model locally, enabling complex task execution with low latency.

Market Context

While the robotics unit secured significant investment, XPENG’s parent company shares have declined 7.22 percent recently, with a 51.24 percent drop over the last 12 months. The company faces increased competition in its core electric vehicle business from both domestic manufacturers and Tesla. XPENG will retain controlling ownership of the robotics unit following the funding round.