Figure AI Breaks Ties with OpenAI, Claims Major Breakthrough in Robot Intelligence

US startup reports 'major breakthrough' in robot intelligence

US-based startup 'Figure AI' has reported a 'major breakthrough' in robot intelligence after years of working in collaboration with OpenAI. Figure AI's CEO, Brett Adcock, took to X to share the recent news, and his excitement to share something in the next 30 days 'no one has ever seen on a humanoid'. Figure AI recently received a funding round of $675 million, placing the company at a $2.6.B as they prepare to release their Figure 02 robot to the market. Figure 02 stands at 5"6 can carry 44 pounds, and work for up to 5 hours on a single charge. With a humanoid design, its hands allow it to open doors, use tools, climb stairs, lift boxes, and more. The firm recently announced its decision to leave its agreement with OpenAI on the heels of its latest accomplishments, with Adcock citing: "LLMs are getting smarter yet more commoditized. For us, LLMs have quickly become the smallest piece of the puzzle," "Figure's AI models are built entirely in-house, making external AI partnerships not just cumbersome but ultimately irrelevant to our success." It's speculated that DeepSeek's advancements in the development of affordable AI are a key factor contributing to the decision. After all, we're starting to see firms build competitor models on budgets as low as $50. While Adcock has yet to share more details about Figure AI's recent breakthrough, the firm announced their push to hire for 'hundreds of roles', ranging from AI engineers, legal, manufacturing and design. The firm's departure from OpenAI also signals significant confidence in their achievements - the details of which we'll hear more about in the coming weeks.

Figure AI Dumps OpenAI Deal After 'Major Breakthrough' in Robot Intelligence - Decrypt

Figure AI, a U.S.-based startup focused on building AI-powered humanoid robots, severed its ties with OpenAI last week, with CEO Brett Adcock claiming a "major breakthrough" in robot intelligence that made the partnership unnecessary. The split came just months after the two companies announced their collaboration alongside a $675 million funding round that valued Figure at $2.6 billion to kick-start its Figure 02 robot. "Today, I made the decision to leave our Collaboration Agreement with OpenAI," Adcock tweeted. "Figure made a major breakthrough on fully end-to-end robot AI, built entirely in-house". The move marked a stark reversal for Figure, which previously planned to use OpenAI's models for its Figure 02 humanoid's natural language capabilities. In a separate post, Adcock explained that, over time, maintaining a partnership with OpenAI to use its LLMs started to make less sense for his company. "LLMs are getting smarter yet more commoditized. For us, LLMs have quickly become the smallest piece of the puzzle," Adcock wrote. "Figure's AI models are built entirely in-house, making external AI partnerships not just cumbersome but ultimately irrelevant to our success." The decision came amid broader changes in the AI landscape. OpenAI itself had been rebuilding its robotics team, filing a trademark application mentioning "humanoid robots" -- alongside a wide array of other technologies like virtual reality, augmented reality, agents, and wearables. It began hiring for its first robotics positions last month. Some AI enthusiasts were quick to note that the move could just be another consequence of the DeepSeek effect -- which has already forced the most powerful AI companies in the world to lower the prices of all their SOTA models to remain competitive against open-source alternatives. OpenAI provides one of the most expensive LLMs in the market -- with DeepSeek R1 providing better results than OpenAI o1 while being available free, open source, uncensored, and highly customizable. Figure could simply be betting on an in-house foundational model to power its lineup without depending on OpenAI's offerings. Figure has already secured a deal with BMW Manufacturing to integrate humanoid robots into automotive production, and recently struck a partnership with an unnamed major U.S. client that would be its second big commercial client. "It gives us potential to ship at high volumes -- which will drive cost reduction and AI data collection," Adcock posted on LinkedIn a week ago. "Between both customers, we believe there is a path to 100,000 robots over the next four years." Figure developed a data engine that powered its "embodied artificial intelligence" systems, enabling its robots to learn and adapt in real time through cloud and edge computing solutions. The company's technology allowed its robots to respond to language prompts and perform tasks that incorporated language, vision, and action. "We're working on training the robot on how to do use case work at high speeds and high performance" Adcock said. "Learning the use case with AI is the only path" OpenAI still maintains investments in other robotics ventures, including Norwegian startup 1X. Adcock promised to reveal the fruits of Figure's "breakthrough" within 30 days, and he wasn't subtle with his words. He promised the announcement would be "something no one has ever seen on a humanoid."

Figure drops OpenAI in favor of in-house models | TechCrunch

Figure AI founder and CEO Brett Adcock announced Tuesday that the humanoid robotics firm is exiting a deal with OpenAI. The Bay Area-based robotics company has instead opted to focus on in-house AI, owing to a "major breakthrough." Adcock was tightlipped in terms of specifics, but he promised to deliver "something no one has ever seen on a humanoid" in the next 30 days. OpenAI has been a longtime investor in Figure. The pair announced a deal last year that aimed to "develop next generation AI models for humanoid robots." At the same time, Figure announced a $675 million raise, valuing the company at $2.6 billion. Figure has so far raised a total of $1.5 billion. The news is a surprise, in part, given the cultural zeitgeist OpenAI has built by mainstreaming generative AI. Mere association with the company comes with a rapid profile boost. In August, the two companies announced that the Figure 02 humanoid would use OpenAI models for natural language communication. The issue with the collaboration, according to Adcock, is integration. OpenAI is a huge company with a massive breadth -- and the intelligence models to match. Embodied AI, which brings artificial intelligence to physical objects such as robots, isn't the ChatGPT maker's primary focus. Instead, the executive suggests, the proper solution is building an end-to-end AI model focused on powering specific hardware. "We found that to solve embodied AI at scale in the real world, you have to vertically integrate robot AI," Adcock tells TechCrunch. "We can't outsource AI for the same reason we can't outsource our hardware." OpenAI has notably hedged its bets in the humanoid space. The firm was also a major backer of 1X. While the majority of humanoid firms are focused on warehouses and factories, the Norwegian startup has shifted much of its own focus on the home. On a trip to Figure's Sunnyvale office last September, Adcock told TechCrunch that the company is also exploring the use of its systems in a home setting. That, however, is not the priority for Figure. After all, automakers have deeper pockets than individuals when it comes to exploring new technology. BMW announced last year that it had begun deploying Figure robots at a South Carolina factory. OpenAI may also be exploring its own humanoid hardware. On Friday, the company filed a trademark application with the U.S. Patent and Trademark Office (USPTO) involving humanoids. The text references both "user-programmable humanoid robots" and "humanoid robots having communication and learning functions for assisting and entertaining people." While intriguing, however, IP filings are not a guarantee of future products. Even so, it's difficult to ignore these two pieces of news arriving in under a week. Figure's massive funding rounds, meanwhile, have allowed it to quickly expand both its hardware and software teams. The company recently moved into a larger Bay Area office to accommodate its rapidly growing staff. When it comes to proprietary software, there's a lot to be said for the Apple ecosystem approach to product development. It's an effective way to create software that works especially well with your hardware systems. It is, however, both difficult and very resource intensive. Most humanoid firms are working on their own bespoke AI models to differing degrees. Partnerships are still prevalent in the industry, however. In October, Boston Dynamics announced that it has been working with Toyota Research Institute (TRI) to bring artificial smarts to the Atlas humanoid robot. TechCrunch has reached out to OpenAI for comment.

Figure AI shuns OpenAI brain, teases unseen humanoid tech in 30 days

Adcock explained that OpenAI's intelligence models were not the right fit for humanoid robotics. OpenAI's focus is on general AI models, such as ChatGPT, rather than AI specifically designed for physical robots. According to Adcock, the best way to solve AI challenges in humanoid robotics is to create an integrated system where software and hardware are developed together. "We found that to solve embodied AI at scale in the real world, you have to vertically integrate robot AI," Adcock told TechCrunch. "We can't outsource AI for the same reason we can't outsource our hardware." This approach is similar to how Apple builds its own software and chips to ensure seamless integration with its hardware. However, developing AI in-house is a resource-intensive task, and not all robotics firms have the financial strength to take this approach. Most humanoid robotics companies still rely on partnerships for AI development. In October, Boston Dynamics announced a collaboration with Toyota Research Institute to improve the intelligence of its Atlas humanoid robot. Despite Figure AI's decision to move away from OpenAI, partnerships remain common in the industry. While AI robotics company is parting ways with OpenAI, the ChatGPT maker appears to be exploring humanoid robotics on its own. OpenAI has invested in Norwegian robotics startup 1X, which focuses on humanoids designed for home use rather than industrial applications.

Are companies falling out of love with OpenAI?

Humanoid robotics company Figure raised eyebrows this week when it announced it would be stepping away from a partnership with OpenAI in favor of building its own in-house AI models. Figure CEO Brett Adcock alluded to a "major breakthrough" in their own process and plans to unveil "something no one has ever seen on a humanoid" in the coming month. Figure isn't the only company experimenting with non-OpenAI solutions either. Just last week, researchers from Stanford and the University of Washington demonstrated that it's possible to train a highly capable "reasoning" model for under $50 in cloud compute credits, a stark contrast to the costs often associated with OpenAI's models. TechCrunch's Kirsten Korosec, Margaux MacColl, and Max Zeff are diving into the biggest news on today's episode of Equity, including how the tide could be changing for OpenAI.