Two Chinese general-purpose and embodied artificial intelligence firms, AI2 Robotics and X Square Robots, today announced funding rounds that pushed their respective valuations beyond 50 billion RMB, or about $2.8 billion.

These Chinese firms continue to push the envelope in developing the next generation of smart machines. Embodied AI, also known as physical AI, is the intersection between AI and the physical world, where detectors such as cameras and microphones feed information to advanced AI models to control machines.

Although the usual image of robots includes humanoids that look and move like people, robotics also involves arms with claspers, smart infrastructure such as doors and air conditioning and autonomous vehicles.

According to a Bloomberg report, AI2 Robotics raised nearly $735 million in new capital, while X Square Robot Technology Co. Ltd. did not disclose the amount it raised across four consecutive funding rounds culminating in a Series C.

Shenzhen-based AI2 Robotics is a global leader in the research, development and manufacture of general-purpose intelligent robots. The company builds both the hardware and the frontier vision-language-action models that operate the machines, providing spatial reasoning and intelligence allowing robots to see, comprehend the world and act without needing manual operation.

The company is best known for robotic platforms such as its flagship AlphaBot series and the AlphaBot Cube. AlphaBot is an advanced wheeled humanoid robot powered by the company’s “Alpha Brain” foundation model that can interpret complex commands, manipulate objects and perform goal-based tasks. Its partially humanoid robots feature over 34 degrees of freedom, a waist-leg lifting mechanism and an arm span of about 2.3 feet.

Unlike similar humanoid-robotics outfits, AI2 aimed for a wheeled platform with a humanoid torso specifically to ensure industrial-grade stability, speed and safety. Although pure bipedal humanoids can work in all the same environments humans can, they face steeper regulatory hurdles for entering public spaces and different safety standards. Having a solid base with a humanoid top makes the AlphaBot less likely to topple over while still enabling it to perform high-precision, humanlike movements.

The company is working on actively commercializing its AlphaBot 2 across multiple environments, including industrial, biotech, public services and retail.

X Square Robot is best known for its proprietary Wall AI frontier robotics models and its self-developed wheeled humanoid Quanta robot series, which includes the company’s X2 flagship.

The company also recently introduced Wall-OSS, in September 2025, an open-source version of its model family aimed at opening access to embodied intelligence and accelerating community-driven development for robotic form factors.

The company developed advanced data-capture tools, including teleoperation, exoskeletons and a specialized interface for understanding human movement. Using these tools, the company built a data pipeline to create movement and environmental understanding for its robotics and improve performance.

Quanta robots have been deployed for varied tasks, including everyday household chores and industrial logistics. The company’s core goal is to deliver its general-purpose humanoid robots to sectors suffering from labor shortages or requiring highly repetitive physical labor.

The company strongly targeted the domestic service market, with the idea that its robots could be used in actual homes and assist professional cleaners with chores. It also focuses on developing heavy-duty versions of its robots for industrial applications and work on factory floors, handling precision assembly and automated parts handling. Other form factors can assist with supply chain management by providing support for sorting, heavy lifting and material transport.

Image: AI2 Robotics