Tech Titans Invest in Humanoid AI Robotics Startup Valued at $2 Billion

JJohn February 24, 2024 7:01 AM

Major tech players, including Jeff Bezos, Nvidia Corp, OpenAI, and Microsoft, are investing in Figure AI Inc., a startup that’s developing humanoid robots. The company's new funding round is set to raise about $675 million, bringing its pre-money valuation to roughly $2 billion.

Big tech investing in humanoid AI

In the race to find new applications for artificial intelligence, big tech names like Jeff Bezos and Nvidia Corp. are throwing their hats in the ring. They are investing in a business that is focused on the development of robots with human-like characteristics. This investment represents a significant move within the tech industry and signifies the growing importance of AI.

Figure AI's new funding round

The emerging startup, Figure AI Inc., which also has the backing of OpenAI and Microsoft, is currently raising about $675 million in a funding round. This funding round sets the company's pre-money valuation at nearly $2 billion. Key investors include Microsoft with an investment of $95 million, and each of Nvidia and an Amazon-affiliated fund contributing $50 million.

Robotic technology is becoming a pivotal new frontier for the AI industry. It allows for the application of cutting-edge technology to practical real-world tasks. Engineers at Figure are currently working on developing a robot that not just looks human, but also moves like one, opening a new chapter in the field of robotics.

Figure 01's potential in labor market

The company has high hopes for its machine, dubbed Figure 01. It intends for this robot to handle dangerous jobs that are not suitable for human beings, thus potentially alleviating labor shortages. This ambition demonstrates the potential of AI and robotics to address labor market challenges.

The AI robotics industry is bustling with activity. Recently, a Norwegian robotics startup, 1X Technologies AS, which enjoys the backing of OpenAI, raised an impressive $100 million. Sanctuary AI, based out of Vancouver, is working on a humanoid robot named Phoenix. Additionally, Tesla Inc. is also making waves with its robot called Optimus, which Elon Musk touts as one of his most significant projects.

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