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You are here: Home / cat / Alibaba Leads $100 Million Funding Round in Chinese Humanoid Robot Startup

Alibaba Leads $100 Million Funding Round in Chinese Humanoid Robot Startup

Dated: September 8, 2025

Chinese humanoid robot startup X Square Robot announced it has secured approximately $100 million in a funding round led by Alibaba Cloud. The Shenzhen-based company, founded less than two years ago in December 2023, has now completed its eighth financing round. This latest investment brings the startup’s total funding to around 2 billion yuan (approximately $280 million). Other investors participating in the round include HongShan (formerly Sequoia Capital China), Meituan, Legend Star, Legend Capital, and INCE Capital.

X Square Robot has already begun generating revenue by selling its robots to schools, hotels, and retirement homes. The company is operating in a rapidly growing market where humanoid robots integrated with generative artificial intelligence (AI) are expected to transform human-machine interactions. COO Yang Qian emphasized the importance of autonomous operation, explaining that decades of robotic development have been limited to simple tasks, but the integration of AI will enable robots to perform more complex functions.

As part of its innovation efforts, X Square Robot unveiled an open-source foundation model for embodied AI called Wall-OSS, which allows developers and the public free access to its underlying code. Embodied AI refers to AI integrated with physical hardware such as robots or self-driving vehicles. The startup claims to be the first to open-source an AI model dedicated specifically to robotics and predicts that “robotic butlers” could become a reality within five years, although this claim has not been independently verified.

Yang acknowledged that AI capabilities for robots currently lag behind generative AI models used for tasks like chatting or coding, and she expects it will take at least another year before robotic AI reaches the sophistication of models like ChatGPT 3.5. She also noted that clear benchmarks for progress in embodied AI are still lacking. While the company uses Nvidia chips for computing, other robot functions use less powerful automotive chips that can be sourced domestically in China, reflecting a strategic balance between high-performance and locally available components.

In addition to software advancements, X Square Robot introduced the Quanta X2 robot, which features 360-degree mop cleaning capability and hands sensitive enough to detect subtle pressure changes, aiming to mimic human-like dexterity. The company currently does not offer a mass-market product, and pricing varies depending on use cases. According to research firm Humanoid Guide, humanoid robots can cost around $80,000, while competitors like Unitree offer models priced at about $16,000, although their functional capabilities differ.

Looking ahead, X Square Robot plans to prepare for an initial public offering (IPO) next year, though the location of the listing has not been finalized. The company expects to grow its current revenue streams and is already in talks with potential customers in Japan and Singapore. However, Yang highlighted that for humanoid robots to achieve widespread consumer adoption, prices need to drop to about $10,000, primarily through reductions in hardware costs—a target she believes can be achieved within three to five years.

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