Physical Intelligence in talks for at least $1 billion round

Bloomberg reported that Physical Intelligence was discussing a funding round of at least $1 billion[1]. The discussions contemplated a valuation of roughly $20 billion, and existing investors Avenir and Lux Capital were in talks to lead the round[1]. Bloomberg described the proposed valuation as nearly double the company’s then-current valuation[1]. The people who provided the information requested anonymity[1]. The report therefore describes a potential financing, not a confirmed closing or final set of terms[1].

Quartz reported that Physical Intelligence secured funding at an $11.5 billion valuation this year[2]. Set against the roughly $20 billion valuation being discussed, that earlier figure gives investors and business teams a reference point for the scale of the proposed increase[1][2]. Bloomberg characterized the proposed valuation as nearly double the startup’s then-current valuation[1]. The evidence does not specify the proposed round’s final amount, terms, timing, or whether the valuation will be agreed[1].

Physical Intelligence develops AI software intended to power robots carrying out real-world tasks, according to Quartz and Bloomberg[2][1]. The company says its AI works across hardware made by different companies and can carry out numerous different robot motions[2]. Quartz reported that Physical Intelligence had no revenue, citing Bloomberg[2]. That detail is relevant when assessing the company’s commercial position alongside its proposed valuation.

Quartz reported that Physical Intelligence began letting outside developers use and tailor its newest robotics models this month, with access in beta[2]. Quartz also reported increased investor interest in the fundraising[2]. Bloomberg, as cited by Quartz, named OpenAI and Tesla among the companies competing with Physical Intelligence[2]. Rival Skild AI reached a $14 billion valuation when it raised funds in January, and announced in September that its annual recurring revenue had exceeded $100 million, according to Bloomberg as cited by Quartz[2]. These figures offer comparison points, but do not establish that the companies have equivalent businesses or results.