XPENG’s Robotics Arm Secures Over $900 Million Ahead of Humanoid Production
XPENG announced that its robotics business has raised over $900 million in its first funding round, a significant milestone for a division that hasn’t yet commercially launched a single robot. This funding comes with weeks to spare before the company’s end-of-year goal to introduce its IRON humanoid robot into production.
August 24, 2026 – 10:45 am
XPENG IRON – The Next-Generation Humanoid AI Robot
Credit: XPENG
The Chinese carmaker aims to place its IRON humanoid in mass production before year’s end, emphasizing the urgency of the timeline. Unveiled at XPENG’s AI Day in November 2025, IRON runs on custom Turing chips designed for the company’s electric vehicles. This shared silicon, coupled with over 60 joints and advanced bionic muscle fascia, is central to XPENG’s pitch.
The seventh-generation prototype demonstrated publicly will be followed by an eighth-generation production model. The company aims to achieve full capability before production begins, a challenging engineering feat within the remaining months.
Deployment plans initially focus on XPENG dealerships and campuses, with commercial deliveries in China and abroad expected in 2027. Similar strategies have been adopted by other Chinese car manufacturers, such as BYD, which plans to have a humanoid in every showroom.
XPENG’s long-term goal is to produce one million units annually by 2030. CEO He Xiaopeng believes robots could be priced "very similar to car prices" within five years, with software accounting for more than half the value of each machine.
He has personally taken charge of the robotics division, acknowledging the industry’s increasing competitiveness. A recent internal note highlights the need for high-level decision-making and arduous implementation.
While XPENG Robotics raised $100 million in a Series A round in July 2022, this latest funding likely reflects a restructured entity rather than a first-time raise. The company has not disclosed the investor list or valuation for the new funding.
The current market shows promising signs for humanoid robots, with LimX Dynamics reaching a $2.2 billion valuation before its IPO and Morgan Stanley predicting 50,000 units will be shipped in China this year. However, against XPENG’s ambitious million-a-year target, these industry-wide figures underscore how early the field still is.