XPeng Robot Business Raises Over $900 Million in First Round, Valuation Exceeds $6.3 Billion
XPeng Group announced its humanoid robot business completed a first equity financing round of over $900 million, valuing the unit at over $6.3 billion (RMB 43 billion), a record for China's embodied AI sector. XPeng will retain control and consolidate the business. The IRON robot, with 76 degrees of freedom and 2,250 TOPS of compute, targets mass production by end-2026, with commercial deployment in XPeng stores and parks and official launch in 2027. Separately, XPeng's second-quarter revenue rose 8% year on year to RMB 19.74 billion, with gross margin of 20.7% and deliveries of 103,000 units, including over 20,000 overseas units, up 81%.
On August 24, XPeng Group announced that its humanoid robot business had signed equity financing agreements with multiple investors, completing a first round of over $900 million in financing. The post-investment valuation exceeds $6.3 billion (approximately RMB 43 billion), setting a record for a single private equity financing round in China's embodied intelligence industry. After the transaction closes, XPeng Group will continue to control the robot business, which will remain consolidated in the group's financial statements.
XPeng IRON is positioned as a high-level general-purpose humanoid robot. It features 76 degrees of freedom across the body, 21 degrees of freedom per hand,, and is powered by three Turing AI chips with effective computing power of 2,250 TOPS. The business has independently designed and developed an AI-native hardware platform and all core components, including chips, controllers, motion modules, and dexterous hands, leveraging XPeng's smart electric vehicle R&D and manufacturing systems to build automotive-grade quality and mass-production delivery capabilities. The proceeds from this round will be used for software and hardware R&D, physical AI model training and iteration, high-quality data collection, full-chain mass-production base construction, and global commercialization expansion.
XPeng IRON plans to enter mass production by the end of 2026, initially deploying commercial applications in XPeng stores and parks, with official launch and delivery in China and overseas markets in 2027. The company stated that over 85% of its supply-chain partners overlap with XPeng's existing automotive supply chain.
In its second-quarter results, XPeng Group reported total revenue of RMB 19.74 billion, up 8% year on year and 51.5% sequentially. Gross margin stood at 20.7%, up 3.4 percentage points year on year. Net loss was RMB 1.34 billion, wider than the RMB 0.48 billion in the year-ago quarter but narrowed 25.1% sequentially; non-GAAP net loss was RMB 1.24 billion.
XPeng delivered 103,000 vehicles in the second quarter, with overseas sales exceeding 20,000 units for the first time, up 81% year on year. Overseas business revenue accounted for over 25% of first-half revenue. R&D expenses reached RMB 2.91 billion in the quarter, mainly for new model development and AI technology iteration. In autonomous driving, the pre-installed mass-produced Robotaxi equipped with the second-generation VLA system architecture has completed over 2,000 internal test orders in Guangzhou, and a cloud takeover platform has been developed. The company plans to achieve driverless passenger operations by 2027.
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The event has a measured impact on 1 industry. The strongest current signal is positive for Robotics, with intensity 90/100 and 85% confidence over a medium term horizon.
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