Xpeng's robotics unit Dogotix raised $900 million at a $6.3 billion valuation, backed by Alibaba, Tencent and IDG. The round is the largest private-equity deal for a Chinese robotics maker, fueling a direct challenge to Tesla's Optimus.
Key facts
- $900M raised by Dogotix at $6.3B valuation
- Alibaba, Tencent, IDG, Gaorong invested $600M combined
- Xpeng pledged $200M of its own capital
- Q2 net loss widened 179% to 1.34B yuan
- Largest PE deal for a Chinese robotics maker
Xpeng's robotics subsidiary Dogotix has raised US$900 million at a US$6.3 billion valuation, marking the largest single private-equity deal involving a Chinese robotics maker, the company said on Monday According to the South China Morning Post. Backers including Alibaba, Tencent, IDG and Gaorong Ventures put up a combined US$600 million, while Xpeng itself pledged US$200 million.
The capital comes despite a widening second-quarter loss. Xpeng's net loss grew 179 per cent year on year to 1.34 billion yuan (US$199.4 million), as R&D costs jumped 32.1 per cent. Revenue rose 8 per cent to 19.7 billion yuan.
CEO He Xiaopeng framed the raise as a bet on physical AI, not just EVs: "I believe Xpeng will not only build one of China's most valuable humanoid robotics companies, but also become a global leader in physical AI." The company is now positioned against Tesla's Optimus, which has been in development for years but has yet to achieve large-scale commercial deployment.
What's notable is the investor lineup — Alibaba and Tencent rarely co-invest in the same round. Their shared stake signals that Chinese tech giants see embodied AI as a strategic imperative, not a side bet. For Xpeng, the cash provides runway to scale Dogotix's humanoid efforts while its core EV business bleeds red ink.
The valuation of US$6.3 billion puts Dogotix in the same league as other Chinese robotics startups like UBTech, which went public in 2024 at a valuation of around US$5.3 billion. The difference: Dogotix has the backing of a carmaker with manufacturing scale and an existing AI stack from its autonomous driving work.
Xpeng did not disclose Dogotix's revenue or burn rate, but the company's commitment of US$200 million of its own capital suggests it sees the unit as core to its long-term strategy, not a spin-off candidate.
Key Takeaways
- Xpeng's Dogotix raised $900M at $6.3B, backed by Alibaba and Tencent, to challenge Tesla in embodied AI.
- Largest PE deal for a Chinese robotics maker.
What to watch
Watch for Dogotix's first commercial deployment announcement — likely a pilot in Xpeng's own factories or logistics network — and any reveal of a humanoid prototype with specs comparable to Optimus. Also track whether Xpeng's EV losses accelerate as R&D spending on robotics climbs.
Source: scmp.com
