San Francisco-based robotics startup Physical Intelligence is reportedly in discussions to raise around $1 billion in new funding, a move that could push the company’s valuation above $11 billion and highlight growing investor confidence in artificial intelligence-powered robotics.
Founded by Karol Hausman, Sergey Levine, and Chelsea Finn, Physical Intelligence is developing advanced AI systems designed to enable robots to perform a wide range of real-world tasks. If completed, the funding round would represent a significant increase from the company’s previous $5.6 billion valuation just months earlier.
The potential investment round has attracted interest from major venture capital firms, including Founders Fund and Lightspeed Venture Partners, along with existing backers such as Thrive Capital and Lux Capital. Discussions remain ongoing, and final terms could change.
At the centre of Physical Intelligence’s strategy is the development of general-purpose artificial intelligence for robots. The company aims to create adaptable AI models that allow machines to handle different tasks and environments instead of being limited to specific, pre-programmed functions.
The startup’s vision has been compared to creating a “ChatGPT for robots,” where intelligent systems could help machines complete everyday activities such as household chores, food preparation, and other tasks requiring flexibility, learning, and interaction with changing surroundings.
Unlike many startups focused on launching immediate commercial products, Physical Intelligence is investing in foundational AI research and robotics infrastructure. The company believes that creating highly capable general-purpose robots requires significant research, computing power, and long-term development.
The growing investor interest reflects a wider trend in technology investment, with increasing funding flowing toward deep-tech companies focused on building long-term capabilities in artificial intelligence, automation, and robotics. Investors are increasingly looking at companies that could create foundational technologies capable of transforming multiple industries.
Physical Intelligence has already raised more than $1 billion in previous funding and has built a team of around 80 employees. The company remains focused on improving AI capabilities rather than pursuing rapid commercialisation.
If the latest funding round is completed, the additional capital could help accelerate the development of advanced robotic systems with potential applications across industries including manufacturing, logistics, and household automation.
The outcome of the funding discussions remains uncertain, but the investment interest reflects a broader shift toward a future where artificial intelligence extends beyond digital systems and enables machines to interact more effectively with the physical world.
