Xpeng’s Robotics Arm Raises More Than $900 Million at a $6.3 Billion Valuation

Xpeng has given its robotics arm a fresh pile of cash and, with it, a price tag. The Chinese EV maker said it signed share purchase agreements with several investors and raised more than $900 million for the unit, which now carries a post-money valuation of more than $6.3 billion.

The round was led by IDG Capital, with Gaorong Ventures also involved. Tencent and Alibaba joined as strategic investors. Xpeng says it will keep a controlling stake, and the robotics business will stay folded into the group’s financial results once the deal closes.

This is more than a funding headline. For the first time, Xpeng has put a market value on the robotics unit while leaving it inside the parent company. The company calls the deal the largest single private round so far in China’s embodied AI sector, a catch-all for AI systems that work through a physical body.

The money is meant to push on several fronts at once: hardware and software development, training and refining Xpeng’s in-house physical AI models, collecting high-quality training data, building manufacturing capacity and expanding overseas. Xpeng also says part of the capital will support long-term equity plans for senior executives and key staff, which is one way to keep scarce robotics talent from wandering off.

At the center of the pitch is IRON, the humanoid robot Xpeng recently showed in a new generation. The company says it has 76 degrees of freedom across the body, 21 in each hand and a fully enclosed flexible lattice structure. It also claims three proprietary Turing AI chips provide up to 2,250 TOPS of effective computing power, letting the model run on the robot itself rather than through remote operation. Mass production is planned by the end of the year, starting in Xpeng stores and on company campuses, with deliveries in China and abroad set for 2027.

Xpeng has not shared revenue, unit costs or named customers for the robotics business, and the robot’s independence outside controlled demos remains unverified. That leaves the valuation doing a lot of the talking. The money is real; the sales story is still being written.