Alibaba (BABA), through its cloud arm Alibaba Cloud Intelligence, has led a new $100 million funding round for Chinese humanoid robot startup X Square Robot, showing growing investor interest in robots powered by AI. The Shenzhen-based company said this is its eighth round of funding since starting in December 2023, bringing total funds raised to about 2 billion yuan ($280 million).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Other big investors joined in, including HongShan (formerly Sequoia Capital China), Meituan, Legend Star, Legend Capital, and INCE Capital. The startup did not share its current valuation. X Square Robot’s Chief Operating Officer, Yang Qian, said the company is already generating revenue from sales to schools, hotels, and retirement homes.
Yang added that X Square Robot plans to prepare for an initial public offering (IPO) next year, though it has not chosen where to list. She said the company is in talks with buyers in Japan and Singapore and expects revenue growth to continue into 2026.
Big AI Robot Market Poised to Grow Fast
Goldman Sachs estimates that the global humanoid robot market could grow from about $3 billion in 2023 to as much as $38 billion by 2035. Morgan Stanley projects even faster growth, saying the sector could reach $5 trillion by 2050, supported by sales of robots, spare parts, maintenance, and services.
With humanoid robots expected to be used in warehouses, elder care, retail, and hospitality, major tech companies stand to benefit as this industry expands.
Alibaba Stands to Gain from the Robot Boom
Alibaba’s role in humanoid robotics is not new. The company has previously supported the Pepper robot through SoftBank and invested in Beijing Xingtong Era, a domestic robotics startup.
These efforts highlight that Alibaba is getting ready to benefit from growing demand for humanoid robots.
Major Tech Names Also Investing in Robotics
Alibaba isn’t alone. Tesla (TSLA), Nvidia (NVDA), Amazon (AMZN), Meta (META), and Alphabet’s Google (GOOGL) are all pouring significant resources into humanoid robotics. Recently, Nvidia’s CEO Jensen Huang said robotics could “potentially be one of the largest industries ever.”
Tesla also unveiled its plan, shifting focus from electric vehicles to AI and robotics. Elon Musk said about 80% of Tesla’s long-term value could come from its Optimus humanoid robot. At the same time, China is moving quickly, with state-backed funding driving rapid growth in humanoid hardware.
Which Stock Is the Best Buy?
Turning to Wall Street, out of the stocks pictured below, Wall Street sees the most upside in Nvidia, with analysts projecting about 27% gains from current levels. Alibaba follows with nearly 19% upside, while Meta and Amazon are expected to climb about 16% and 14%, respectively. By contrast, Tesla faces the steepest downside, with targets implying a 13% drop, while Alphabet is also seen slipping slightly by around 1%.
