XPeng – previously known only for electric cars – has raised more than $900 million for its robotics business at a post-money valuation of more than $6.3 billion, as the Chinese electric vehicle maker prepares to begin mass production of its IRON humanoid robot.
The company says the financing is the largest single-round private capital raise to date in China’s embodied AI industry.
The round was led by IDG Capital, with participation from Gaorong Ventures and strategic investment from Tencent and Alibaba.
XPeng says the capital will be used for robotics hardware and software research and development, training and improving its physical AI models, generating data, developing mass-production facilities and supporting global commercial expansion.
The company expects its next-generation IRON humanoid to enter mass production by the end of 2026. Initial deployments are planned for XPeng stores and campuses, followed by a commercial launch and deliveries in China and overseas markets in 2027.
IRON forms a central part of XPeng’s physical AI strategy and is being developed as a general-purpose humanoid platform for a range of applications.
The robot has 76 degrees of freedom across its body and 21 in each hand. XPeng has developed its core hardware internally, including chips, controllers, motion modules and dexterous hands, and says it plans to apply manufacturing capabilities developed through its electric vehicle business to humanoid production.
IRON is powered by three Turing AI chips providing up to 2,250 TOPS of computing power. This allows XPeng to run its physical AI foundation model directly on the robot, enabling autonomous operation without remote control.
IDG Capital said: “The embodied AI industry stands at a pivotal juncture, transitioning from technical breakthroughs to scalable manufacturing and commercial deployment. XPENG’s humanoid robot exemplifies the current standard of excellence in China’s humanoid robotics industry and possesses the competitive strength to succeed in global markets.”
Gaorong Ventures said: “Humanoid robotics is moving beyond demonstrations of mobility and dexterity toward reliable mass production and tangible value creation in real-world settings.
“With its highly anthropomorphic form factor and automotive-grade standards for safety and quality, XPENG IRON is built for commercial deployment. It serves not only as an intuitive, human-centered interface but also as a critical gateway to real-world data, powering a self-reinforcing ‘Production-Data-Models-Deployment’ flywheel.
“By systematically translating its full-stack R&D, supply chain, and manufacturing capabilities – honed over more than a decade in the smart EV sector – into robotics, XPENG is laying a solid foundation for the industrialization of humanoid robots.
“Gaorong has long recognized the XPENG team’s strengths in product definition and engineering execution. We look forward to partnering with XPENG to propel China’s physical AI innovations onto the global stage.”
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.”
Following completion of the financing, XPeng will retain controlling ownership of the robotics business and continue consolidating it into the group’s financial statements.
