Global artificial intelligence (AI) mobility company XPENG has raised more than $900 million for its robotics business as it prepares to launch its first vehicles in the Philippines in September.
The funding round, led by IDG Capital, values the robotics business at more than $6.3 billion. Gaorong Ventures participated in the round, while Tencent and Alibaba joined as strategic investors.
XPENG will retain control of the robotics business, which will remain part of the group’s financial statements. The new capital will fund hardware and software research, AI model training, real-world data collection, mass-production facilities, and expansion in China and overseas markets.
The investment is separate from XPENG’s Philippine vehicle business. However, it supports the same AI system used across the company’s electric vehicles, humanoid robots, aerial mobility products, and smart manufacturing operations.
XPENG will enter the Philippine market with the X9 intelligent seven-seater and L03 SUV coupé. These vehicles use AI to understand their surroundings, respond to road conditions, and interact with drivers.
“Over the past 12 years, XPENG has remained committed to full-stack in-house R&D, building a solid technological foundation for the Physical AI era across our physical world foundation model, Turing AI chips, and AI infrastructure,” said He Xiaopeng, chair and CEO of XPENG. “This has enabled us to pioneer a new phase of mass production and commercial deployment for advanced humanoid robots.”
Physical AI allows vehicles and robots to sense their surroundings, make decisions, and act in the real world. XPENG develops its own AI chips, driving systems, computing infrastructure, and AI models.
Its robotics program focuses on IRON, a humanoid robot designed to work in spaces built for people. IRON has 76 degrees of freedom across its body and 21 in each hand, allowing it to move and handle objects in ways similar to humans.
Three XPENG Turing AI chips provide IRON with up to 2,250 trillion operations per second of computing power. XPENG said this reduces the robot’s reliance on remote operators when processing information and carrying out complex tasks.
IRON is expected to enter mass production by the end of 2026, with initial use at XPENG stores and campuses. The company plans to begin deliveries in China and other markets in 2027.
“I believe the strong capital backing from leading global and strategic investors provides the resources needed to accelerate the growth of our robotics business while strengthening our ability to attract more world-class Physical AI talent,” Xiaopeng said.