Alibaba injects $100 million into X Square Robot to speed global rollout of humanoid tech - Finance 50+

Alibaba injects $100 million into X Square Robot to speed global rollout of humanoid tech

Alibaba Group has led a fresh funding round of roughly $100 million for X Square Robot, a Shenzhen-based developer of humanoid machines. The investment, arranged through Alibaba Cloud, lifts the startup’s total financing to about $280 million since its launch in December 2023.

Capital targets embodied AI and wider sales network

Chief Operating Officer Yang Qian told CNBC earlier this week that the new funds will expand research on embodied artificial intelligence—software that allows robots to perceive, reason and act in physical environments. The company also plans to increase manufacturing capacity and build distribution channels outside China.

Venture firms HongShan, Meituan, Legend Star, Legend Capital and INCE Capital joined Alibaba in the latest round. Their participation keeps pace with surging interest in humanoid platforms as developers pair advanced hardware with generative AI models. According to Yang, autonomous operation is now the industry’s central goal after decades of robots limited to repetitive tasks such as simple object grasping.

New model and open-source framework unveiled

Alongside the fundraising announcement, X Square Robot introduced WALL-OSS, an open-source embodied foundation model hosted on GitHub and Hugging Face. The framework aligns vision, language and action to perform manipulation tasks in real-world settings. By opening the codebase, the company aims to accelerate collaborative improvements among academic and commercial researchers.

X Square Robot also revealed the Quanta X2, a prototype featuring 360-degree cleaning functions, attachable mop heads and grippers that detect subtle pressure changes. The company said these capabilities represent a step toward commercial robots that can handle household or hospitality duties with minimal human oversight.

Revenue streams already in place

Although mass-market deliveries have not begun, Yang confirmed that X Square Robot is generating income from pilot deployments in schools, hotels and senior-care facilities. Unit prices remain case-dependent; research firm Humanoid Guide lists the company’s humanoid units at approximately $80,000. Competing models from Unitree start near $16,000, but their exact feature sets have not been detailed.

The global humanoid robotics segment is drawing record venture capital as companies race to integrate large language models, improved sensors and advanced actuators. A recent CNBC report noted that rapid progress in generative AI lowers the barrier for machines to understand complex instructions, making the sector attractive to both industrial and consumer investors.

Expansion strategy and industry outlook

With eight funding rounds completed in less than two years, X Square Robot plans to allocate a portion of the new capital to overseas marketing and support operations. The company is evaluating partnerships with logistics providers to shorten delivery times once full-scale production begins.

Analysts expect competition to intensify as established tech firms and emerging players showcase prototypes capable of warehouse picking, front-desk service and domestic chores. Market researchers forecast that embodied AI will diversify robot applications beyond manufacturing, opening opportunities in healthcare, education and public safety.

Next steps

In the near term, X Square Robot intends to refine the Quanta X2’s dexterity and battery endurance while adding modules for voice interaction and autonomous navigation. The startup has not released a timeline for commercial release but indicated that product pricing will depend on customer requirements and service agreements.

Alibaba’s backing gives the company a resource advantage and potential access to enterprise clients that already rely on Alibaba Cloud. Observers will watch whether the funding accelerates real-world deployments and narrows cost gaps with rival offerings.

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