X Square Robot, a China-based startup specializing in humanoid robotics, has raised RMB 1 billion yuan ($143 million) in a new funding round led by TikTok owner ByteDance and venture capital firm HongShan Capital Group, reports Caixin. The investment marks the latest sign of investor enthusiasm for China’s fast-evolving “embodied AI” sector—artificial intelligence systems capable of physical interaction.
The company announced the deal Monday, bringing its total funding to RMB 3 billion. The sizable capital injection underscores the growing momentum behind embodied AI in China, even as some industry experts caution that valuations may be outpacing commercial viability.
A mix of private and state-backed investors joined the latest round, including the Beijing Information Industry Development Fund and Shenzhen Capital Group, which invested through its AI-focused fund. Local government investment vehicles from Shenzhen’s Nanshan district and the city of Wuxi also took part. The new round follows earlier backing in May from Chinese tech giants Meituan and Alibaba Group.