The XPENG IRON Robot
Global artificial intelligence (AI) Mobility company #XPENG has raised more than US$ 900 million for its robotics business in a funding round led by IDG Capital, with participation from Gaorong Ventures and support from Tencent and Alibaba as strategic investors. Valuing the business at more than US$ 6.3 billion, the transaction marks the largest single-round private capital raise to date in China’s embodied AI industry and reinforces XPENG’s growing investment in AI and its real-world applications.The announcement comes as XPENG prepares to bring its AI mobility solutions to the Philippines in September through two vehicles: the flagship XPENG X9 intelligent seven-seater and the stylish XPENG L03 SUV coupé. While the investment is focused on XPENG’s robotics business, it provides a broader view of the AI technology ecosystem behind the company’s vehicles and its positioning as a global AI mobility company.
XPENG’s approach extends beyond developing electric vehicles. The company is building AI technologies that can be applied across intelligent vehicles, humanoid robots, aerial mobility and smart manufacturing. These technologies include proprietary AI chips, intelligent driving systems, computing infrastructure and Physical AI models.
Physical AI refers to artificial intelligence that enables machines, including vehicles and robots, to perceive their surroundings, make decisions and respond to real-world conditions. For Filipino motorists, this approach will initially be experienced through the X9 and L03, where AI is designed to help the vehicles understand their environment, respond to different driving situations and interact more intuitively with their users.
The latest investment will support further hardware and software research and development for XPENG’s robotics business, the continued training and improvement of its Physical AI models, the generation of real-world data, the development of mass-production facilities and future commercial expansion in China and overseas markets.
At the center of XPENG’s robotics program is IRON, a next-generation humanoid robot designed to perform a range of tasks in environments built for people. It has 76 degrees of freedom across its body and 21 in each hand, enabling human-like movement and dexterity.
IRON is powered by three XPENG Turing AI chips delivering up to 2,250 trillion operations per second of onboard computing power. This allows the robot to process information and perform complex tasks with less reliance on remote operation. XPENG has developed its core systems in-house and is applying the manufacturing expertise and quality standards from its intelligent electric vehicle business to humanoid robotics. It is expected to enter mass production by the end of 2026, with initial deployment at XPENG stores and campuses. Its official launch and deliveries in China and overseas markets are planned for 2027.
XPENG will retain controlling ownership of its robotics business following the completion of the financing round. The business will also continue to be consolidated into the Group’s financial statements.
He Xiaopeng, Chairman and CEO of XPENG, said: “Over the past 12 years, XPENG has remained committed to full-stack in-house R&D, building a solid technological foundation for the Physical AI era across our physical world foundation model, Turing AI chips, and AI infrastructure. This has enabled us to pioneer a new phase of mass production and commercial deployment for advanced humanoid robots.
“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. 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.”