The San Francisco-based robotics firm Physical Intelligence is in early discussions to raise approximately $1 billion in new funding, according to a report by Bloomberg. The deal would value the two-year-old startup at over $11 billion, effectively doubling its $5.6 billion valuation from just four months prior.
Founders Fund is set to participate in the round, with Lightspeed Venture Partners also in talks to invest, Bloomberg reported. They would join returning backers Thrive Capital and Lux Capital. The outlet noted that the deal remains in early stages and details could change.
Building 'ChatGPT for robots'
Co-founder Sergey Levine, in a January interview with TechCrunch, described the company's ambition as creating a system akin to "ChatGPT, but for robots." The company is developing general-purpose artificial intelligence models designed to enable robots to perform a wide array of tasks, from domestic chores like folding laundry to more complex activities.
At the time of the visit, Physical Intelligence had raised just over $1 billion in total funding and employed around 80 people. The company maintains an unusual posture regarding its path to market, with co-founder Lachy Groom telling TechCrunch it has no defined timeline for commercialisation.
Unlimited compute for an unsolved problem
This lack of a commercial deadline appears not to concern its investors. Groom stated, "There’s no limit to how much money we can really put to work," emphasising that "there’s always more compute you can throw at the problem." The statement underscores the capital-intensive nature of developing advanced AI models, which require significant computational power.
The reported funding round highlights the intense investor interest and high financial stakes in the frontier of embodied AI, where software intelligence is applied to physical machines. If completed, the deal would mark one of the largest single rounds for a robotics AI company.