China’s Xpeng said on Monday that its robotics business has raised more than $900 million in its first funding round, in a major investment that values the unit at more than $6.3 billion.
The funding round was led by IDG Capital and Gaorong Ventures, with Chinese technology giants Tencent and Alibaba participating as strategic investors, Xpeng said in a statement.
The fundraising highlights growing investor interest in China’s robotics industry as technology companies and manufacturers expand into artificial intelligence and physical automation.
Xpeng has been developing robotics alongside its electric vehicle business, with the company positioning the technology as part of its broader push into physical AI and smart mobility. Xpeng is scheduled to report its second quarter 2026 financial results on Monday.
The investment also brings major Chinese technology companies deeper into the country’s rapidly developing robotics sector. Tencent and Alibaba have backed several Chinese technology ventures as Beijing encourages domestic development of advanced technologies.
The latest funding follows an earlier $100 million Series A financing for Xpeng’s robotics business led by IDG Capital in 2022.
The new valuation underscores the increasingly important role investors see for robotics in China’s technology industry, particularly as companies race to develop commercially viable machines powered by artificial intelligence.
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