Renowned figures like Jeff Bezos and Nvidia Corp. are part of a cohort of tech giants funneling funds into a business devoted to creating human-like robots, sources familiar with the matter revealed. This strategic investment surge underscores the tech industry’s ongoing quest to explore fresh avenues for artificial intelligence. Figure AI Inc., the startup at the forefront of this initiative and additionally supported by OpenAI and Microsoft Corp., is currently in the midst of raising approximately $675 million in a funding round, boasting a pre-money valuation hovering around $2 billion.
With Bezos channeling $100 million through his Explore Investments LLC, Microsoft injecting $95 million, and contributions of $50 million each from Nvidia and an Amazon.com Inc. affiliated fund, the venture’s financial backing is robust. The emphasis on robots represents a novel frontier in the AI realm, enabling the implementation of cutting-edge technology into real-world scenarios. The team at Figure is diligently crafting a robot, dubbed Figure 01, which mimics human appearance and movement. The ultimate goal is for this machine to undertake perilous tasks not suitable for humans, thereby mitigating labor shortages.
Various other technology juggernauts are also involved in this venture. Intel Corp.’s venture capital arm is pledging $25 million, LG Innotek is offering $8.5 million, and Samsung’s investment arm is contributing $5 million. Furthermore, venture capital firms such as Parkway Venture Capital and Align Ventures are injecting significant amounts of $100 million and $90 million, respectively. The ARK Venture Fund, Aliya Capital Partners, and a slew of other investors are actively participating to support Figure’s ambitions.
The capital raising exceeded expectations, with $675 million secured, a substantial hike from the initial target of $500 million. While Figure and its investors have chosen to maintain silence on the matter, insiders anticipate the capital transfer and formal agreements to be finalized on Monday. This nearly $2 billion valuation is calculated before factoring in the fresh capital infusion.
The AI robotics sector has experienced a flurry of activities recently. OpenAI-backed 1X Technologies AS secured $100 million, Sanctuary AI is developing a humanoid bot named Phoenix, and Tesla Inc. is underway with the development of Optimus, deemed a pivotal project by Elon Musk. Agility Robotics, supported by Amazon, is currently testing bots at an Amazon warehouse.
Jeff Bezos, the world’s second-wealthiest individual, as per the Bloomberg Billionaires Ranking, was at the helm of Amazon until 2021 and presently serves as chairman. His staggering net worth is estimated at $197.1 billion. This latest move by tech heavyweights signifies a dynamic push towards exploring the infinite possibilities artificial intelligence holds in transforming our world.
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