X Square Robot attracts big names as its full-stack embodied AI strategy moves ahead

Four consecutive funding rounds in quick succession underscore investor confidence in the startup’s embodied AI foundation model and ability to translate it to real-world deployments

By Teri Yu 

General-purpose embodied intelligence startup X Square Robot has completed its Series C funding round that valued it above 20 billion yuan ($2.94 billion), reinforcing its position among China’s leading robotics companies. The rapid series of capital raising underscores growing investor interest in “physical AI,” an emerging field that integrates robotic hardware, embodied AI foundation models and real-world applications.

Participants in the latest funding included IDG Capital, adding to an A-list of backers that already includes some of China’s largest internet companies, including Meituan, Alibaba and ByteDance. HongShan and Xiaomi have also participated in multiple stages.

Founded in 2023, X Square Robot is positioning itself at the intersection of large-scale embodied Al models and robotics hardware, an area increasingly seen as the next major Al growth frontier beyond generative Al. While large language models have reshaped digital services, companies like X Square Robot are working to bring machine intelligence into physical systems such as homes, factories, hospitality and elderly care services.

The company’s core technology is a general-purpose embodied AI model designed to unify perception, language, action and physical prediction. In April, the company unveiled WALL-B, a foundation model built on what it calls a “World Unified Model” architecture, which integrates multiple capabilities into a single system rather than relying on separate modules.

The company has also open-sourced components of its system, including WALL-OSS-0.5 and WALL-WM, aimed at advancing robot manipulation and world modeling.

Beyond research, X Square Robot has begun deploying its systems in households, factories and logistics operations. It has launched an AI-powered cleaning service in Shenzhen and Beijing, as well as the “X Family Member Program,” which places robots in households for up to a month to assist with chores and provide companionship. The initiatives reflect the company’s confidence in testing embodied AI in one of the most complex real-world settings: the home.

Beyond the home, X Square Robot is expanding into industrial and service-sector scenarios where embodied AI must meet higher standards for precision, stability and productivity. Its model-powered robots are being introduced into automotive supply-chain production lines, complex logistics workflows such as intelligent sorting and flexible parts feeding, and eldercare facilities where they can support delivery, companionship, cleaning, organization and safety patrols. Together, such deployments broaden the company’s real-world testing ground from homes to factories, logistics networks and care facilities, showing how embodied AI can move beyond controlled demonstrations and into commercially demanding environments.

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