A notable cohort of tech magnates, including billionaire Jeff Bezos and Nvidia, has plunged into the realm of human-like robots, signaling a fresh exploration of artificial intelligence (AI) applications. According to Bloomberg News, Jeff Bezos, founder of Amazon.com, and Nvidia are among the investors backing Figure AI Inc., a startup dedicated to the development of human-like robots.
Figure AI Inc. has successfully secured a substantial $675 million in funding, attributing to its pre-money valuation of approximately $2 billion. This strategic investment is endorsed by heavyweight backers such as OpenAI, Microsoft Corp., and Bezos’ Explore Investments LLC, as reported by Bloomberg.
Jeff Bezos is spearheading the funding initiative with a committed investment of $100 million, closely followed by Microsoft contributing $95 million. Additionally, both Nvidia and an Amazon.com Inc.-affiliated fund are injecting $50 million each into the venture. This financial commitment reflects a collective belief in the potential of Figure AI to revolutionise the AI and robotics landscape.
These investments come in the wake of the widespread interest in artificial intelligence startups, particularly ignited by the viral launch of OpenAI’s ChatGPT in November 2022. Investors are seizing the opportunity to support these startups, anticipating their potential to outpace more established competitors.
OpenAI, initially considering the acquisition of Figure, is now investing $5 million in the venture. Other backers include Intel’s venture capital arm, LG Innotek, Samsung’s investment group, Parkway Venture Capital, Align Ventures, ARK Venture Fund, Aliya Capital Partners, and Tamarack, forming a diverse consortium of supporters.
While Amazon, Nvidia, Microsoft, and Intel declined to comment, Figure AI, among others, did not immediately respond to Reuters’ requests for comment.
The Robotic Revolution Unveiled: Figure AI’s Figure 01
Against the backdrop of technological advancements, robots have emerged as focal points in the AI industry, embodying cutting-edge solutions to real-world challenges. At Figure AI, engineers are diligently working on Figure 01, a humanoid robot meticulously crafted to replicate human appearance and movements.
Figure 01 is envisioned to undertake hazardous tasks unsuitable for human intervention, addressing labor shortages and contributing to a safer work environment. Key players in the tech industry, such as Intel Corp.’s venture capital arm, LG Innotek, and Samsung’s investment group, have joined the robotic revolution by contributing $25 million, $8.5 million, and $5 million, respectively.
Parkway Venture Capital is a standout supporter with a $100 million investment, accompanied by Align Ventures with $90 million. Other significant contributors include ARK Venture Fund ($2.5 million), Aliya Capital Partners ($20 million), Tamarack ($27 million), Boscolo Intervest Ltd. ($15 million), and BOLD Capital Partners ($2.5 million). This diverse coalition of investors is poised to fuel advancements in AI-driven robotics.
The participation of tech giants has significantly elevated Figure AI’s funding from the initial target of $500 million to an impressive $675 million. While representatives for Figure and the investors have refrained from commenting, details are expected to be finalized by Monday.
With a pre-money valuation of around $2 billion, excluding the capital Figure is raising, the startup aims to pioneer a commercially viable humanoid robot. The AI robotics industry is witnessing dynamic activity, with notable developments from OpenAI-backed 1X Technologies AS, Sanctuary AI, and Tesla’s Optimus robot. In this burgeoning technological domain, Amazon-supported Agility Robotics has robots undergoing testing in its warehouses, underscoring the vibrancy and potential of the AI robotics sector.
Jeff Bezos, ranked as the world’s second-richest individual with an estimated net worth of $197.1 billion, continues to make strategic investments post his tenure as Amazon’s CEO. His engagement in this funding initiative further emphasizes the strategic importance of advancements in AI and robotics.
