Japanese conglomerate SoftBank Group (SFTBF) and chipmaker Nvidia (NVDA) are in talks to invest in Skild AI as part of a funding round worth more than $1 billion, according to Reuters. If the deal goes through, it would value Skild at about $14 billion, almost triple the $4.7 billion valuation from its $500 million Series B round earlier this year. Interestingly, Skild AI was founded in 2023 by former Meta (META) AI researchers and is backed by Amazon (AMZN), Lightspeed Venture Partners, and others.
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Instead of building robots themselves, Skild focuses on developing foundation models, which are advanced AI software that help robots understand the world and make decisions like humans. The goal is to provide the “brain” for robots of all shapes and sizes. Notably, in July, Skild revealed its first general-purpose AI model, which can handle tasks from warehouse work to household chores.
It’s no surprise that interest in robotics is rising quickly, given the recent progress in AI. However, experts still warn that fully general-use robots may be years away. Nevertheless, SoftBank was reportedly so impressed by Skild’s pilot tests that it made robotics a major priority. Separately, U.S. Commerce Secretary Howard Lutnick is also pushing for faster robotics development, with the Trump administration considering an executive order on the topic next year, according to Politico.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the four stocks mentioned above, analysts think that Nvidia stock has the most room to run. In fact, Nvidia’s average price target of $258.10 per share implies more than 41% upside potential.
