Apptronik Raises $935M in Series A Round
University of Texas spinout, Apptronik, a leading figure in the production of humanoid robots, announced on Wednesday that it has reopened its Series A funding round. The firm, which has worked with prominent clients including Google DeepMind, has managed to secure a total of $935 million for this round of funding. Despite not publicly disclosing the company’s valuation, TechCrunch has reported that Apptronik now stands at an impressive post-money valuation of approximately $5.3 billion.
Increasing Investor Demand
Initially, Apptronik announced a Series A round of $350 million a year ago. However, due to overwhelming demand from investors, the company decided to extend the round to $415 million. Subsequently, Apptronik has raised an additional $520 million. This extra funding has come from a combination of previous investors, such as Google, Mercedes-Benz, and B Capital, as well as a number of new investors.
Although it may appear that Apptronik is simply selling off increasingly larger shares of itself at the Series A price, the company has clarified that this is not the case. With each expansion, investors have gradually paid more for the shares, tripling the initial Series A valuation of about $1.75 billion, according to data from PitchBook.
Why Not Series B?
One might wonder why the company has not moved on to a Series B funding round. Apptronik explains that it is still in the early stages of development and was not actively seeking additional financing. The extension of the Series A round was due to inbound interest from investors who saw the potential in the company’s technology.
Investment in Bipedal Robots
Developing technology as complex and advanced as bipedal robots is an expensive venture. However, the potential return on this technology is substantial, prompting investors to provide substantial financial backing. This phenomenon is not unique to Apptronik: Figure AI, a similar startup, had already raised nearly $2 billion since its founding in 2022 before announcing an additional $1 billion funding round last fall.
Partnerships and Applications
Apptronik has attracted significant attention due to its partnerships with Google DeepMind, GXO, and Mercedes-Benz. Together, they aim to deliver what is known as embodied AI: robots capable of perceiving their surroundings and physically acting based on reasoning, rather than simply following fixed instructions. These robots are designed for tasks such as unloading trailers, preparing warehouse inventory, and servicing machines.
Apptronik’s History
Despite still being in its Series A funding round, Apptronik is not a newcomer in the field of humanoid robotics. The company’s work dates back to 2013, three years before its official founding. It was then that members of the Human Centered Robotics Lab at the University of Austin in Texas participated in the NASA-DARPA Robotics Challenge, working on a robot called Valkyrie. Since then, NASA has maintained a partnership with Apptronik as the company prepares its own humanoid robot, Apollo.
Source: TechCrunch
