Robotics startup Figure AI is reportedly in advanced discussions to secure funding of up to $500 million in a funding round. Tech giants Microsoft and OpenAI are expected to lead the round, with Microsoft contributing approximately $95 million and OpenAI investing around $5 million. Figure AI is currently seeking additional investors to join the funding round. If successful, the funding could give Figure AI a pre-money valuation of $1.9 billion, potentially propelling the startup into unicorn status. However, the funding round is not yet finalized, and there is a chance that negotiations could fall apart. Representatives from Microsoft, OpenAI, and Figure AI declined to comment on the news.
Figure AI specializes in the development of humanoid robots and is working on a project called Figure 01, an AI-driven robot designed to replicate human appearance and movement. The company envisions deploying this technology in hazardous work environments, potentially replacing human workers in high-risk roles and addressing workforce shortages. In a previous funding round in May 2023, Figure AI raised $70 million with contributions from investors such as Parkway Venture Capital, Aliya Capital, and Bold Capital Partners.
The AI robotics sector has been experiencing significant investment activity. 1X Technologies, an OpenAI-backed Norwegian AI robotics firm, recently secured $100 million in funding. Sanctuary AI, based in Vancouver, is also developing its own humanoid robot named Phoenix, and Tesla, led by Elon Musk, is working on a robot called Optimus.
The potential funding for Figure AI highlights the growing interest and investment in the AI robotics industry. With advancements in robotics technology, there is an increasing focus on leveraging humanoid robots to perform structured, repetitive, and dangerous tasks in various industries. However, it is important to balance the benefits of replacing human workers with the potential risks, including job displacements and ethical considerations surrounding the use of robots in certain roles.
As the negotiations for Figure AI’s funding round continue, the outcome remains uncertain. Nevertheless, the interest from major players like Microsoft and OpenAI signals the recognition of the potential of AI robotics and its impact on various industries.
