Physical Intelligence in Talks to Raise $1 Billion at $20 Billion Valuation

Physical Intelligence is reportedly discussing a financing of at least $1 billion at a roughly $20 billion valuation, as investor interest grows in general-purpose robot foundation models.

Robotico

October 28, 2026

2m read

Physical Intelligence is in early discussions to raise at least $1 billion in new financing at a valuation of about $20 billion, according to Bloomberg, a potential deal that would nearly double the robot AI developer’s valuation in a matter of months. Existing investors Avenir and Lux Capital are among the parties in talks to lead the round. The discussions remain preliminary, and neither the size nor the valuation has been finalized.

The San Francisco company, founded in 2024 by former Google DeepMind researchers and academics from Stanford and the University of California, Berkeley, is building general-purpose models designed to control different kinds of robots. Unlike humanoid manufacturers, Physical Intelligence focuses on the software that enables machines to interpret tasks and execute physical actions. Its approach is intended to work across robot arms, mobile manipulators and other platforms rather than requiring a separate intelligence system for every machine.

Physical Intelligence was valued at roughly $11.5 billion earlier in 2026. The reported new valuation would represent a sharp increase for a company that has not yet generated revenue, underscoring the scale of investor expectations around robot foundation models. Its backers include CapitalG, Thrive Capital and Jeff Bezos, while Avenir and Lux are reportedly considering leading the latest financing.

The fundraising talks follow an important change in how the company makes its technology available. On October 13, Physical Intelligence introduced a beta of its Pi API, allowing outside developers to upload their own robot data, fine-tune foundation models and run inference through hosted infrastructure. That gives hardware developers a way to experiment with general-purpose robot intelligence without building an entire model-training operation internally.

The proposed investment remains a report of negotiations, not a completed financing. But its scale would put Physical Intelligence among the most highly valued independent developers of robot intelligence.