Physical Intelligence seeks to raise $1 billion, doubling valuation to $11 billion in four months

Physical Intelligence is reportedly in talks to raise $1 billion, again | TechCrunch

Physical Intelligence, the two-year-old San Francisco robotics startup, is in discussions to raise about $1 billion in new funding at a valuation exceeding $11 billion, according to Bloomberg. The deal would effectively double the company's $5.6 billion valuation in just four months. Founders Fund is set to participate with Lightspeed Venture Partners also in talks to invest alongside returning backers Thrive Capital and Lux Capital, Bloomberg reported. The deal is still in early stages and details could change, noted the outlet. TechCrunch visited Physical Intelligence's headquarters in January, where co-founder Sergey Levine described the company's ambition simply: "Think of it like ChatGPT, but for robots." At the time, the company had raised just over $1 billion and employed about 80 people working to build general-purpose AI models that can power robots to perform a wide variety of tasks, from folding laundry to peeling vegetables. Co-founder Lachy Groom told TechCrunch the company has no timeline for commercialization, an unusual posture that its investors don't seem to mind. "There's no limit to how much money we can really put to work," Groom said. "There's always more compute you can throw at the problem."

AI Robotics Lab in Talks to Raise $1 Billion at $11 Billion Valuation

Physical Intelligence, a two-year-old robotics startup founded by AI academics and former Google DeepMind researchers, is discussing a new funding round of about $1 billion that would bring the company's valuation to more than $11 billion including dollars raised, according to people familiar with the matter. The deal would effectively double the startup's valuation in four months, as it works to build artificial intelligence models that can power robots capable of performing a variety of tasks. The company's last funding round, a $600 million haul, valued Physical Intelligence at $5.6 billion. Peter Thiel's Founders Fund is set to participate in the round, said some of the people, who asked not to be identified because the information is private. Lightspeed Venture Partners is also in talks to invest, as are previous backers Thrive Capital and Lux Capital. The deal talks are still early and the details could change, the people said. A representative for Physical Intelligence did not immediately respond to a request for comment. Representatives for the VC firms declined to comment. So far, Physical Intelligence has raised more than $1 billion in capital. Investors include Amazon.com Inc. founder Jeff Bezos, Alphabet Inc.'s independent growth fund CapitalG, Redpoint Ventures, BOND and Avenir Growth. Venture capital investors have recently flocked to companies building AI models focused on the physical world. Startups working on humanoid robots include Skild AI, which was recently valued at more than $14 billion by investors including Lightspeed, and Figure AI, valued at $39 billion. Big Tech players are also piling into robotics, including Alphabet Inc.'s DeepMind, Apple Inc. and Meta Platforms Inc. Physical Intelligence is developing artificial intelligence software to help robots learn a wide range of movements. The San Francisco-based startup has deployed its software on robotic arms in a testing capacity to perform tasks such as fold clothes, make coffee and assemble boxes. The ultimate goal, the company has said, is building models that enable robots to perform any function requested by the user through "vision-language models," in the same way that large-language models complete digital tasks on command. In recent weeks, the company has released new research about improving memory in robotic software models as well as performance on precise tasks that require careful and detailed manipulation of objects.

Physical Intelligence Seeks $1 Billion as Robotics Interest Grows | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. That round would raise the company's valuation to north of $11 billion, Bloomberg News reported Friday (March 27), citing sources familiar with the matter. This deal would double the valuation of the startup, which is developing artificial intelligence models that perform a range of tasks. To date, the company has raised more than $1 billion in capital from investors including Amazon founder Jeff Bezos, the report added. Bloomberg noted that investors have been showing increased interest in companies working on AI models for the physical world, with humanoid robotics startup Skild AI recently reaching a valuation of more than $14 billion. Another company, Mind Robotics, was recently valued at around $2 billion after a $500 million funding round aimed at developing autonomous robotics systems. The startup, a spinout of electric vehicle maker Rivian, focused on developing advanced robotics technologies for deployment in manufacturing and logistics, where companies are looking for new forms of automation to deal with labor shortages and operational complexity. Big Tech companies are also entering the robotics space, including Apple, Meta and Google DeepMind, where some of Physical Intelligence's founders got their start. Physical Intelligence is creating AI software to help robots learn a wide range of movements, and has used its software on robotic arms in testing environments to engage tasks like folding clothes, preparing coffee and assembling boxes, the report added. The company has said its goal is to develop models that let robots perform any function a user requests via "vision-language models," much like large language models carry out on command in a digital space. As PYMNTS wrote earlier this month, the new focus on physical AI "reflects a shift in the AI startup landscape away from general-purpose tools toward systems that can perform defined tasks in sectors such as robotics, healthcare, logistics and enterprise software." Interest in physical AI has increased amid a larger debate about the role robotics might play in advancing AI. Tesla CEO Elon Musk recently contended that humanoid robots could point the way toward artificial general intelligence (AGI), suggesting that machines that can interact with the physical world may speed progress in autonomy and reasoning. "While the claim remains speculative, funding patterns suggest investors are betting that AI systems connected to real-world environments could become a major frontier of innovation," that report added.