In Depth: Investors Warn Developing Humanoid Robots Will Be a Marathon, Not a Sprint
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Investors in China’s tech startup space are urging caution on backing humanoid robotics ventures, warning that while the industry is rich in flashy demonstrations and bold claims of mass production, it still lacks solid commercial progress.
“We believe most embodied robotics right now don’t demonstrate a truly viable commercial model. Right now, for a robot to be useful, it just needs to be a machine that can take on human labor with a good use-case scenario, like flying cameras and robotic vacuum cleaners,” said Wu Shichun, founding partner at Beijing-based venture capital firm Plum Ventures, on the sidelines of the Beyond Expo held between May 21 and 24 in Macao.

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- Chinese tech investors are urging caution on humanoid robotics, citing a lack of solid commercial progress and viable business models despite flashy demonstrations.
- Skepticism stems from robots being primarily entertainment-focused, lacking utility in household/industrial scenarios, and facing inflated valuations.
- Despite investor concerns, global funding for humanoid robotics reached $1.1 billion in 2024, with China's sector raising 8.45 billion yuan across 71 deals in 2024.
Investors in China's tech startup ecosystem are increasingly cautious about backing humanoid robotics ventures, despite the industry's visibility through high-profile demonstrations and claims of rapid progress. Industry experts highlight that current humanoid robots often lack commercially viable applications and are predominantly used for entertainment rather than in household or industrial settings, where they fail to deliver tangible productivity gains. Wu Shichun, a founding partner at Plum Ventures, explained that truly useful robotics to date are those with clear, practical use cases, such as robotic vacuum cleaners or aerial drones, not humanoid robots that mimic human behavior for spectacle[para. 1][para. 2][para. 3].
The popularity of companies like Unitree Robotics, which rose to prominence after its robots performed at nationally televised events and subsequently raised around 1 billion yuan ($138 million), underscores the public fascination with humanoid robots. However, even such viral moments have not convinced seasoned industry players of the sector’s immediate commercial potential. Joe Tsai, chairman of Alibaba, expressed skepticism at the Beyond Expo, questioning the practicality of humanoid robots and noting that many scenarios would still prefer human interaction over robotic substitutions[para. 4][para. 5][para. 6][para. 7].
Cautionary voices, like Allen Zhu Xiaohu of GSR Ventures, warn of a speculative bubble, pointing to inflated valuations and a lack of sustainable commercial customers, with most current buyers being research institutions or government entities for exhibition purposes. Ownership claims and mass production deals are often exaggerated, as some firms "gift" robots to partners instead of making real commercial sales. Venture capitalists predict that established giants like Xiaomi and Huawei, leveraging superior resources and distribution networks, may eventually dominate the field once the technology matures[para. 10][para. 11][para. 12][para. 13].
Despite skepticism, the global and Chinese humanoid robotics industries have seen an investment surge. Global funding grew from $308 million in 2020 to $1.1 billion in 2024, fueled by advances in AI and a desire to create robots with general-purpose intelligence. China’s funding and deal volume have soared, with 71 deals raising 8.45 billion yuan in 2024—marked increases from the previous year. Local governments are actively fostering the sector with research funding and policy support, especially in the Pearl River Delta, Beijing, Shanghai, and Hangzhou, leveraging their unique strengths in algorithms, manufacturing, and supply chains[para. 15][para. 16][para. 17][para. 18][para. 19][para. 20][para. 21][para. 22].
However, the challenge of commercializing versatile robots persists, as most current models excel at narrow, repetitive tasks but cannot yet "learn" on the job. Technological bottlenecks such as spatial intelligence, hardware durability, and effective data collection for real-world scenarios limit progress. These constraints were evident when only six out of 21 humanoid robots completed a half-marathon test. Experts recommend measured expectations, predicting functional pilot applications within five years and broader workforce impact within a decade[para. 24][para. 25][para. 26][para. 27][para. 28][para. 29][para. 30][para. 31][para. 32][para. 33].
Looking ahead, there is consensus that the humanoid robotics trend will continue, with more promising applications emerging in logistics and manufacturing over the next ten years. Investors advocate for discernment to avoid overhyped segments, favoring targeted investments in AI-driven consumer technology, software tools, and companies that can clearly demonstrate real-world functionality[para. 35][para. 36][para. 37][para. 38][para. 39][para. 40][para. 41][para. 43][para. 44].
- Plum Ventures
- Plum Ventures is a Beijing-based venture capital firm. Wu Shichun, a founding partner, expressed caution regarding humanoid robotics, noting most lack viable commercial models and currently serve entertainment purposes. While acknowledging the current market, Plum Ventures continues to invest in the robotics sector, backing companies like industrial arm developer Rokae and companion robot developer HachiBot.
- Unitree Robotics
- Hangzhou-based Unitree Robotics gained prominence after its humanoid robots performed at the Chinese Spring Festival Gala in January. The company completed a nearly 1 billion yuan ($138 million) Series B2 funding round in February. Recently, their robots also participated in a Beijing half-marathon and a boxing match, making headlines for these public displays. However, these spectacles are noted as not fully convincing industry players of solid commercial potential.
- Alibaba Group Holding Ltd.
- Joe Tsai, chairman of Alibaba Group Holding Ltd., shared his skepticism regarding humanoid robots at the Beyond Expo. He believes their value is currently limited by technology, questioning scenarios preferring a robot over a human. Tsai noted a lack of spatial intelligence in current robotics, indicating further advancements are needed for the industry's progress in understanding space.
- GSR Ventures
- GSR Ventures is a venture capital firm whose managing director, Allen Zhu Xiaohu, is a notable skeptic of humanoid robotics. He has questioned the sector's commercialization and inflated valuations, stating his angel fund is exiting some early-stage embodied AI projects. Zhu believes early-stage VCs now avoid this track, as current buyers are primarily research institutions or for exhibition, not sustainable commercial value.
- Xiaomi Corp.
- Xiaomi Corp. is identified as a tech giant predicted to eventually dominate the humanoid robotics market. According to Plum Ventures' Wu Shichun, companies like Xiaomi, with their significant capital, manufacturing capabilities, and established sales and distribution channels, are expected to catch up and overtake current startups in the sector.
- Huawei Technologies Co. Ltd.
- Huawei Technologies Co. Ltd. is predicted to eventually dominate the humanoid robotics market, according to Plum Ventures' founding partner Wu Shichun. This anticipated success stems from Huawei's substantial capital, strong manufacturing capabilities, and well-established sales and distribution channels, enabling them to catch up to and surpass current robotics startups.
- Rokae
- Rokae is an industrial robotic arm developer. The company is one of the robotics ventures that Plum Ventures, a Beijing-based venture capital firm, continues to support. This indicates Rokae builds specialized robotic arms for industrial applications.
- HachiBot
- HachiBot is identified as a companion robot developer. It is one of the robotics ventures that Beijing-based venture capital firm Plum Ventures continues to back. The article does not provide further details on HachiBot's products, specific capabilities, or its current commercial status.
- Bain and Co.
- According to the article, Bain and Co. is a consultancy firm. An April report by Bain and Co. indicated that global funding in humanoid robotics startups saw significant growth, increasing from approximately $308 million in 2020 to $1.1 billion in 2024.
- China Renaissance
- China Renaissance is mentioned as having an investment banking unit. Xu Kun, a partner in this unit, previously told Caixin that the Pearl River Delta's mature supply chain for smartphones and cars positions it as a natural hub for robotics.
- Agile Robotics
- Agile Robotics is a company that develops robotic arms with force feedback capabilities. These robotic arms are notably used for Apple Inc.'s iPhone assembly lines. Linear Capital, an early-stage tech investment firm, is an investor in Agile Robotics.
- FutureX Capital
- FutureX Capital is a private equity firm. Its founding partner, Cynthia Zhang, acknowledges "bubbles" in certain AI areas but emphasizes discerning investment. The firm remains committed to the AI sector, diversifying investments into AI-powered consumer tech hardware (like translation earphones and glasses) and enterprise software tools (such as AI agents). They believe China is rapidly closing the gap in AI development.
- Horizon Robotics
- Horizon Robotics is an autonomous driving firm. Hermitage Capital, a tech-focused private equity fund, has invested in D-Robotics, a robotics computing solutions provider that was spun off from Horizon Robotics.
- Linear Capital
- Linear Capital is an early-stage tech investor in Asia, led by CEO Harry Wang. The firm acknowledges "many bubbles" in the robotics industry but sees strong potential with realistic expectations. Wang suggests a 5-year timeline for functional pilot applications and 10 years for significant human worker replacement. Linear Capital invests in companies like Agile Robotics, a developer of robotic arms used in Apple's iPhone assembly lines.
- Hermitage Capital
- Hermitage Capital is a tech-focused private equity fund. Its president and managing partner, Henry Zhang, advises managing expectations for humanoid robots, noting that demonstrations often highlight specific, pre-trained tasks rather than general capabilities. Hermitage Capital is actively investing in the humanoid robotics sector, having deployed funds into companies like D-Robotics, a robotics computing solutions provider.
- 2020:
- Global funding in humanoid robotics startups was about $308 million.
- 2022:
- The large language model boom began, sparking increased investments in robotics.
- 2023:
- China's humanoid robotics race picked up, with efforts to develop homegrown competitors to Tesla’s Optimus.
- April 2024:
- Consultancy Bain and Co. reported global funding in humanoid robotics startups reached $1.1 billion in 2024.
- By the end of 2024:
- Shenzhen had approximately 210 companies specializing in embodied AI robotics.
- January 2025:
- Unitree Robotics rose to prominence after its robots performed at the Spring Festival Gala.
- February 2025:
- Unitree Robotics announced completion of a Series B2 funding round raising nearly 1 billion yuan.
- Late February 2025:
- Beijing launched a 100 billion yuan, 15-year government investment fund to support AI and robotics.
- Early March 2025:
- Shenzhen unveiled new AI development priorities, including three for embodied intelligence.
- March 2025:
- Guangdong province unveiled a plan including up to 50 million yuan in funding for research centers.
- Late March 2025:
- Allen Zhu Xiaohu of GSR Ventures publicly expressed skepticism about humanoid robot commercialization.
- April 2025:
- 21 humanoid robots competed in a half-marathon in Beijing; only six finished the race without toppling over.
- April 2025:
- Estimates released by Gaogong Industrial Institute reported 71 financing deals and around 8.45 billion yuan raised for China's humanoid robotics sector in 2024.
- May 21–24, 2025:
- Beyond Expo held in Macao; industry figures discussed humanoid robotics.
- May 24, 2025:
- Joe Tsai, chairman of Alibaba Group, spoke at a panel at the Beyond Expo.
- May 25, 2025:
- A WWE-like boxing match between humanoid robots made headlines.
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