Alibaba Cloud invests $140M in X Square Robot, boosting AI robotics
China’s high-tech landscape is witnessing a fast-growing craze for humanoid robotics. In this larger picture, Alibaba Group’s cloud and artificial intelligence unit has taken a significant step by leading a 1 billion yuan (approximately US$140 million) Series A+ funding round in Shenzhen-based AI start-up X Square Robot. This marks Alibaba Cloud’s first major investment in embodied intelligence products, a move set to give new dimensions to the integration of robotics and AI.
Company’s Founding and Investment Background
X Square Robot was founded in 2023 by Wang Qian, who holds expertise in electronic and biomedical engineering from Tsinghua University and a PhD in robotics from the University of Southern California. He has also managed a quantitative fund in the United States. Within just two years, the company has showcased its strength and impact, raising over 2 billion yuan (around US$280 million) across eight funding rounds, reflecting rapid growth and strong investor confidence in the sector.
Who Are the Investors?
Apart from Alibaba Cloud, several prominent names joined this US$140 million funding round. CAS Investment, China Development Bank Capital, HongShan Capital Group (formerly known as Sequoia Capital China), Meituan (an existing investor), Legend Capital, and others participated in the round. This highlights the deep trust major companies have in X Square Robot’s technology and vision.
Use of Funds and Technological Development
X Square Robot has clarified that the funds will be utilised primarily for training its self-developed embodied intelligence foundation models and for the development of its hardware products. The company aims to advance its technology to a maturity level where robots can understand and respond effectively to complex real-world environments. A prime example of this progress is its recently open-sourced WALL-OSS-4.2B model, which further strengthens the bond between AI and robotics.
Key Products and Their Features
Among X Square Robot’s flagship products is the Qunta X2, a dual-arm humanoid robot with wheels, launched last month. Another significant product is the Artixon Hand, an advanced dexterous robotic hand. According to the company, these products are designed to bring transformation to household, industrial, and service sectors. However, they are not yet available for the mass market, and their pricing is determined based on specific applications.
Alibaba’s Strategic Moves and Expansion
Over the past few years, Alibaba has strengthened its foothold in AI and robotics through major investments. Previous investments include companies such as Unitree Robotics, Corenetic AI, Robotera, LimX Dynamics, and Galaxea. Additionally, Ant Group has established a company named Mayi Lingbo Technology in Shanghai, focusing on similar technologies. Alibaba has also announced plans to spend US$53 billion on AI infrastructure within three years. This strategy aligns closely with China’s national priorities, where robotics and AI development hold high importance.
Market Potential and Future Prospects
The robotics market holds enormous potential in the coming years. According to Citigroup estimates, the global robotics market could reach US$7 trillion by 2050, reflecting the vast opportunities within the industry. X Square Robot is planning an IPO next year, which will mark a major step in its expansion and technological advancement.
The Importance of AI and Embodied Intelligence
Embodied intelligence is the field where AI models are integrated with physical robotics hardware, enabling robots to “think, perceive, and act.” Until now, many AI models were limited to data or software levels. With X Square Robot’s WALL-OSS model and Alibaba’s support, this field is gaining new direction. This investment is expected to accelerate growth, providing robotics with new social and industrial dimensions.
Conclusion
Alibaba Cloud’s investment stands out not just for X Square Robot but for the entire robotics and embodied intelligence industry in China. Through this move, Alibaba has once again demonstrated its ambition to master next-generation technologies. This funding will allow X Square Robot to expand its AI capabilities, speed up the development of cutting-edge robotic products, and strengthen its presence in the global market. In the coming years, the sector is expected to grow rapidly, with China and giants like Alibaba leading from the front.
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