Physical Intelligence Targets $1 Billion Valuation in New Funding Round

Physical Intelligence, a robotics startup developing AI models for physical tasks, is reportedly seeking $1 billion in new funding. Sources close to the matter told Bloomberg that this round would value the company at over $11 billion – doubling its current valuation.

The news comes as investor interest in companies building AI systems that interact with the real world accelerates. Physical Intelligence has already raised more than $1 billion from investors including Amazon founder Jeff Bezos, and joins other robotics startups like Skild AI (valued at $14+ billion) and Mind Robotics ($2 billion valuation) in attracting significant capital.

Focus on Practical Applications

Physical Intelligence’s technology enables robots to learn a wide range of movements by processing natural language commands. Demonstrations have shown robotic arms using the software to perform tasks like folding clothes, preparing coffee, and assembling boxes – all through simple voice requests.

The company aims to create AI models that allow robots to handle any function users request via vision-language interfaces, similar to how large language models operate in digital spaces.

This funding round highlights a broader shift in the AI landscape toward more specialized systems capable of performing defined tasks. As PYMNTS noted earlier this month, investors are increasingly seeking practical applications for AI beyond general-purpose tools.

The rise of physical AI also aligns with discussions about how robotics might advance artificial intelligence capabilities. Tesla CEO Elon Musk recently suggested that humanoid robots could serve as a pathway toward more advanced forms of AI reasoning and autonomy.