XPeng's robot unit raises $900M at $6.3B valuation, led by IDG

Xpeng’s robotics business has raised more than $900 million at a $6.3 billion valuation in a round led by IDG Capital

The Chinese EV maker now has the cash to push its IRON humanoid to reach mass production this year.

Why is Xpeng making robots if its car business is suffering? 

The Chinese electric vehicle maker Xpeng (NYSE: XPEV) has raised over $900 million for its robotics business at a $6.3 billion valuation. The funding round was led by IDG Capital, with other major investors including Tencent and Alibaba (NYSE: BABA).

Cryptopolitan previously reported that Xpeng calls itself a “Physical AI company” that makes humanoid robots, robotaxis, and flying vehicles. The company is spinning off its robotics assets and staff into a standalone subsidiary called Dogotix. The money will help the company mass-produce its IRON humanoid robot by the end of 2026, with commercial deliveries in China and overseas markets scheduled to start in 2027.

On the other hand, Xpeng’s car business reported a net loss of 1.34 billion yuan ($199.4 million) for the second quarter of 2026. That loss is 179% larger than the same period last year. However, revenue rose 8% to 19.7 billion yuan. The company delivered 103,295 vehicles in the second quarter, up 64.8% from the first quarter.

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