The robotics industry has surged to the forefront of investment circles this year, with humanoid robots dominating headlines through high-profile demonstrations—from performing traditional dances at China’s Spring Festival Gala to playing soccer and serving as receptionists at tech expos. Against this backdrop, Beijing will soon host the world’s first half-marathon exclusively for humanoid robots. Fueling this momentum, companies like Zhongqing, Yunxiang, and Xinghaitu have recently announced billion-yuan financing rounds, signaling intense capital interest in humanoid robot technologies.
However, beneath this enthusiasm rages a fierce debate about potential investment bubbles. The controversy intensified when Zhu Xiaohu, Managing Partner at GSR Ventures, publicly declared his firm is “exiting humanoid robot companies in batches,” sending shockwaves through investment and tech communities. Industry experts acknowledge both opportunities and challenges: while investment drives innovation, underlying risks warrant caution. Only firms with core technologies addressing practical market needs will thrive long-term.
- Funding Surge and Corporate Expansion
Investment in humanoid robots has skyrocketed globally. According to IT Juzi, China’s humanoid robot sector recorded 56 financing deals totaling over ¥5 billion in 2024. While total funding remained stable compared to 2023’s ¥5.405 billion, deal frequency surged from 30 to 56 transactions, involving 40 investors versus 24 the previous year. Qichacha data reveals over 190,000 robotics-related enterprises registered in China during 2024—a decade high—with 44,000 new registrations by March 19, 2025. Currently, 849,000 robotics firms operate nationally, 30% specializing in scientific research and technical services.
Corporate giants are accelerating their humanoid robot pursuits. JD.com entered the embodied intelligence field in March 2025, focusing on household applications. Midea Group established a dedicated humanoid robot research institute, while smartphone maker vivo launched its robotics lab. Automakers like GAC Group, XPeng Motors, and BYD are also expanding into this frontier. Globally, startups have attracted billions in funding.
KPMG forecasts explosive growth for humanoid robots, a key embodiment of AI. The global market reached $203 million in 2024 and is projected to hit $1.325 billion by 2029—a 45.5% CAGR. “China’s embodied intelligence investment market shows vigorous recovery,” noted KPMG. “Humanoid robot financing alone grew from ¥1.58 billion in 2020 to ¥7.23 billion in 2024, averaging 35.6% annual growth.”
Valuations reflect this fervor. Agile Robots, founded by former “Huawei Genius” Peng Zhihui, hit ¥15 billion after its March 2025 Series B round. Unitree Robotics, featured in the 2025 Spring Festival Gala, achieved ¥8 billion valuation in September 2024.
- The Valuation Debate and Strategic Positioning
Huo Hongyi, Commercial Strategy Expert at Nuantuoluo Consulting, describes humanoid robots in a “window of immaturity yet ripe for explosion.” Valuations reflect strategic positioning around converging trends: breakthroughs in ChatGPT and DeepSeek enable AI to execute physical actions, while humanoid robots serve as universal terminals for real-world AI deployment. Capital isn’t betting on single products but on platform-level shifts in work and life. Critical bottlenecks—power systems, perception algorithms, lightweight materials—are dissolving, accelerating humanoid robots’ transition from labs to practical scenarios.
- Divergent Views on Commercial Viability
Zhu Xiaohu’s exit declarations starkly contrast prevailing optimism. He argues humanoid robots lack sustainable commercialization: “They don’t create enduring client value.” Primary buyers—universities, competitors, or state-owned enterprises using them as exhibition displays—represent undesirable customers for GSR. Zhu questions market logic: “Who pays ¥100,000+ for such labor?” Public records confirm GSR’s exits from humanoid robot firms Xinghaitu (invested November 2023, exited September 2024) and Songyan Dynamics (invested March 2024, exited January 2025).
Fu Sheng, CEO of Cheetah Mobile, supports Zhu’s stance: “This bubble harms the industry.” He highlights unready infrastructure—”Robots need four escorts: one operating, two carrying spare batteries.” Most demonstrations involve pre-programmed movements rather than genuine autonomy. Wang Peng, Associate Researcher at Beijing Academy of Social Sciences, notes alarming imbalances: global humanoid robot financing exceeded ¥11 billion January-October 2024 versus a ¥2.76 billion market size in China. Current displays prioritize acrobatics over functionality, representing “resource waste.”
- Industry Defense and Long-Term Vision
Counterarguments emphasize strategic patience. David Zhang, Founding Partner of Matrix Partners, responded via social media: “Some bubbles are natural; humanoid robots will ultimately produce industry giants.” Zhongqing Robotics founder Zhao Tongyang noted Zhu’s preference for short-term returns contrasts with the sector’s long development cycles. He maintains humanoid robots could trigger transformative industrial revolutions.
Accused companies publicly rebutted concerns. Xinghaitu affirmed “huge potential in embodied intelligence,” while Songyan Dynamics released a video of its humanoid robot running, captioned “Undeterred by noise, we advance.” Founder Jiang Zheyuan quoted classical poetry: “Amid the monkeys’ endless cries, the light boat sails past endless mountains.”
- Balancing Speculation and Substance
Huo Hongyi acknowledges early-stage overvaluation—firms without mass production capabilities or revenue streams command billion-yuan valuations based on concepts alone. Yet the sector isn’t uniformly overheated. Critical components like controllers, actuators, AI models, joint reducers, and biomimetic materials remain underdeveloped and capital-intensive. Sustained funding remains essential to ignite industrial breakthroughs despite speculative excesses at the application layer.
As financing floods the humanoid robot landscape, the central question persists: Is this momentum building toward explosive growth or masking fundamental vulnerabilities? With billions in capital and corporate prestige at stake, the trajectory of humanoid robots will hinge on bridging today’s technical aspirations with tomorrow’s commercial realities.