Robot Startup Physical Intelligence in Talks to Raise at Least $1B at Valuation of Up to $20B

October 28: According to Bloomberg, robotics AI software developer Physical Intelligence is in talks to raise at least $1 billion in funding at a valuation that would nearly double to about $20 billion. Existing investors Avenir and Lux Capital are in talks to lead the round. Physical Intelligence raised funds earlier this year at a valuation of $11.5 billion, and people familiar with the matter said the company currently has no revenue.

Physical Intelligence was founded in 2024 by former Google DeepMind researchers and academics from Stanford University and the University of California, Berkeley. Its investors include Alphabet's CapitalG, Jeff Bezos and Thrive Capital. The company develops AI software that can run on a variety of third-party hardware and support a range of robot actions; recent job postings said employees will train robots to complete everyday household tasks. Earlier this month, Physical Intelligence opened access to and fine-tuning of its latest robot model to external developers; it is still in the testing stage.