Physical Intelligence was in talks on 27 October to raise at least $1 billion at a valuation of roughly $20 billion, nearly double its earlier level, Bloomberg reported, citing people familiar with the discussions. The startup develops AI software intended to control robots carrying out physical tasks.
Key points
- Existing investors Avenir and Lux Capital are in talks to lead the proposed round.
- Reports put an earlier valuation at $11.5 billion or roughly $11 billion.
- Physical Intelligence began giving outside developers beta access to its newest robotics models in October.
- The company has no revenue.
Avenir and Lux Capital discuss the round
Avenir and Lux Capital, both existing backers, are in discussions to lead the financing, Bloomberg reported. The proposed amount is at least $1 billion. The valuation and the investment remain subjects of talks, rather than terms of a completed transaction.
Physical Intelligence received funding earlier in 2026 at a valuation of $11.5 billion, Quartz reported. The company has no revenue. The proposed $20 billion price would therefore follow an earlier funding round before the startup had begun generating sales.
Startup Fortune put the earlier valuation at roughly $11 billion in a Series C in May. It reported that Physical Intelligence raised $400 million at a $2.4 billion valuation in November 2024. That round provides an earlier price for the business, while the current discussions concern a substantially larger proposed investment.
The startup’s other backers include CapitalG, Jeff Bezos and Thrive Capital, according to Quartz. Its investors are being asked to fund software designed for machines made by other companies, rather than a business already recording revenue from those products.
Physical Intelligence opens robotics models to developers
Former Google DeepMind researchers founded Physical Intelligence in 2024 with academics at Stanford University and the University of California, Berkeley. The company is based in San Francisco and develops models intended to give robots the ability to perform different real-world tasks.
Its pi-zero foundation model was trained using data from robot arms carrying out physical work. Adapted versions have folded laundry, made coffee and cleared tables, Startup Fortune reported. Those tasks describe what the models have done in demonstrations. The company’s business is the software that directs robots, rather than the manufacture of the machines themselves.
Physical Intelligence began allowing outside developers to use and tailor its newest robotics models in beta in October. That access reportedly increased investor interest in the fundraising. The company says its AI can work with different manufacturers’ hardware and perform a range of robot movements.
Skild AI reached a $14 billion valuation
Skild AI, another startup developing software that teaches robots to perform tasks, reached a $14 billion valuation in a January funding round. Its approach also centres on a model intended to operate across different robots. The valuation provides a price for another robotics software company alongside the figure Physical Intelligence is discussing.
Figure AI offers a different comparison. It builds humanoid robots as well as developing technology for them, and closed a Series C of more than $1 billion in September 2025 at a $39 billion valuation, Startup Fortune reported. Its business includes the machines that Physical Intelligence’s software-focused approach leaves to other manufacturers.
Skild AI announced in September that its annual recurring revenue had passed $100 million, Quartz reported.
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