Robotics software startup Physical Intelligence is in talks to raise at least $1 billion at a valuation of about $20 billion, according to Bloomberg. The figure would nearly double the $11.5 billion valuation the company secured earlier this year, and people familiar with the matter said the company currently has no revenue.
Existing investors Avenir and Lux Capital are in talks to lead the round, the report said. Founded in 2024 by former Google DeepMind researchers and academics from Stanford University and the University of California, Berkeley, Physical Intelligence builds AI software designed to run on a variety of third-party robot hardware and support a wide range of robot actions.
Its backers include Alphabet investment arm CapitalG, Jeff Bezos and Thrive Capital. Recent job postings indicate employees will train robots to complete everyday household tasks, a sign of where the company sees its earliest practical use.
Earlier in October, the company opened access to and fine-tuning of its latest robot model to external developers, although the model remains in a testing stage. That step matters because generalist robot software only improves once developers can try it on different hardware and tasks.
The talks underline how strongly investors still back physical AI, even for a company without revenue yet. A funding round at this scale would give Physical Intelligence a long runway to turn promising demos into reliable machines. For now, though, the deal is only reported talks, not a closed round, and the terms could still change.
Builders watching this space will also want to follow agent tools such as Claude and GitHub Copilot, which show how capable AI models are increasingly expected to act in the real world, not just answer questions.
Source: PANews, reporting Bloomberg
