AI startup Figure AI Inc. is reportedly in advanced discussions to secure up to $500 million in an investment round, led by Microsoft Corporation MSFT and OpenAI.
What’s Buzzing: Figure AI, a company committed to the development of humanoid robots, is in funding negotiations that could potentially raise as much as $500 million. The round is expected to be spearheaded by Microsoft and OpenAI, reported Bloomberg, citing a person with knowledge of the matter.
Figure AI is also actively exploring additional investors for the round. As per the discussions, Microsoft might provide about $95 million, and OpenAI is considering a $5 million investment.
This arrangement could boost Figure AI’s pre-funding valuation to $1.9 billion, with a substantial increase in post-funding valuation, contingent on the final raised amount. Last year in May, the company raised $70 million in a funding round led by Parkway Venture Capital.
The startup is focused on the development of an AI-powered humanoid robot, Figure 01, designed for carrying out hazardous tasks unfit for humans.
The finalization of the funding round is still in process, with the possibility that the investment amounts may change or the entire deal may not materialize, the report noted.
Significance: The pursuit of Figure AI to create AI-powered humanoid robots is critical in light of recent developments and skepticism in this field. Previously, Tesla Inc.’s TSLA much-touted Optimus humanoid robot faced criticism for its viability after an analyst highlighted its staged unveiling.
On the other hand, China announced its ambitious plans to mass-produce humanoid robots by 2025. The country aims to support robotics startups to cultivate talent and, in their words, “reshape the world.”