Physical Intelligence Is in Talks to Raise at Least $1 Billion at About a $20 Billion Valuation, Bloomberg Reports
Robotics-AI startup Physical Intelligence is in talks to raise at least $1 billion at a valuation of about $20 billion, with existing backers Avenir and Lux Capital in talks to lead, Bloomberg reported on October 27, citing people familiar with the matter. Bloomberg says the startup was valued at $11.5 billion earlier this year and has no revenue. The companies did not respond to Bloomberg, and no deal has been announced.
Investors may be about to nearly double the price on a robotics-AI company that, according to Bloomberg, has no revenue. Physical Intelligence, a startup that builds AI software to control robots, is in talks to raise at least $1 billion at a valuation of about $20 billion, Bloomberg reported on October 27, citing people familiar with the matter. Existing backers Avenir and Lux Capital are in talks to lead the round, according to Bloomberg.
What Bloomberg reports#
Bloomberg says Physical Intelligence raised money at an $11.5 billion valuation earlier this year and has no revenue. Its other backers include CapitalG, Alphabet's independent growth fund, Amazon founder Jeff Bezos and Thrive Capital, according to Bloomberg as relayed by Quartz. Physical Intelligence, Avenir and Lux Capital did not respond to Bloomberg's requests for comment.
The company was founded in 2024 by former Google DeepMind researchers and academics from Stanford University and the University of California, Berkeley, Quartz reports, citing Bloomberg. This month it began letting outside developers use and tailor its newest robotics models in a beta, which Bloomberg says has increased investor interest in the round. Physical Intelligence says its AI works across robot hardware from many makers.
The competition#
Bloomberg names OpenAI and Tesla among the companies competing with Physical Intelligence. Skild AI, another startup building AI for robots, reached a $14 billion valuation when it raised money in January and said in September that its annual recurring revenue had passed $100 million, according to Bloomberg.
Limits#
- The talks, the round size, the valuation and the lead investors come from Bloomberg's unnamed sources; no deal has been announced, and terms could change.
- We read Bloomberg's report only in part, through its opening, and relied on Quartz's account of the rest.
- The revenue and earlier valuation figures are Bloomberg's; Physical Intelligence did not comment.