X Square Robot secures $140 million in funding from ByteDance, Sequoia, and others · TechNode

X Square Robot Rockets Past the Billion-Yuan Mark as ByteDance, Sequoia, and Alibaba-Backed Unicorn Accelerates Embodied AI Push

In a striking display of confidence from China’s most influential tech investors, X Square Robot, a rising star in the embodied intelligence sector, has closed an eye-popping RMB 1 billion ($140 million) Series A++ funding round. The capital injection was spearheaded by a coalition of heavyweight backers, including ByteDance, Sequoia China, and Shenzhen Capital Group, alongside a handful of government-backed investment platforms.

What makes this round particularly noteworthy is that it represents the inaugural deployment of Shenzhen Capital’s freshly minted AI-focused fund—an early signal that the local government is doubling down on artificial intelligence as a strategic pillar for economic development. For X Square Robot, the financing is not just another check in the bank; it cements its position as the only domestic embodied intelligence firm to have attracted capital from three of China’s internet behemoths—ByteDance, Alibaba, and Meituan—underscoring the rare breadth of its industry support.

Founded in December 2023, X Square Robot has wasted no time establishing itself as a serious contender in the race to commercialize general-purpose AI. The company’s core strategy revolves around the development of proprietary AI models capable of powering versatile, autonomous machines. Its first two flagship products, the Quantum-1 and Quantum-2 robots, have already hit the market, showcasing an end-to-end in-house approach that spans hardware design, software development, and core component manufacturing.

This vertical integration is no small feat in an industry where many startups rely heavily on third-party suppliers. By bringing core technologies under its own roof, X Square Robot not only accelerates innovation cycles but also insulates itself from supply chain vulnerabilities—a lesson painfully learned by many during recent global disruptions.

The company’s ambitions, however, extend well beyond the lab. X Square Robot is methodically expanding its footprint into real-world applications, with initial deployments in industrial manufacturing and logistics. These sectors, characterized by repetitive, labor-intensive tasks, are prime candidates for automation via embodied AI. Early pilots suggest that the Quantum series can boost efficiency, reduce operational costs, and improve workplace safety—outcomes that are music to the ears of factory managers and warehouse operators alike.

The participation of ByteDance in this funding round is especially significant. Known globally for its short-video juggernaut TikTok, ByteDance has been quietly but aggressively building out its AI capabilities across multiple verticals, from content recommendation to autonomous systems. An investment in X Square Robot aligns with its broader strategy to embed AI into physical environments, potentially paving the way for future collaborations in areas such as smart logistics, automated content production, or even next-generation consumer robotics.

Sequoia China’s involvement adds another layer of prestige and strategic value. As one of the most successful venture capital firms in the region, Sequoia has a track record of identifying and nurturing category-defining companies. Its backing provides X Square Robot not only with capital but also with access to a vast network of industry partners, potential customers, and global markets.

Meanwhile, the support from Alibaba’s investment arm (via its earlier funding rounds) signals continued confidence in the embodied AI space, even as the e-commerce giant itself explores automation solutions for its sprawling logistics network. Meituan’s participation further diversifies the company’s strategic alliances, opening doors to applications in local services, delivery, and on-demand robotics.

The timing of this funding is also worth noting. As global competition in AI intensifies—particularly between the U.S. and China—embodied intelligence is increasingly viewed as the next frontier. While much of the AI conversation has centered on large language models and generative AI, embodied AI promises to bridge the gap between digital intelligence and the physical world, enabling machines to perceive, learn, and act in complex, unstructured environments.

X Square Robot’s rapid ascent reflects a broader trend in China’s tech ecosystem: a shift from pure software innovation to the integration of AI with tangible, real-world applications. This evolution is being fueled by a combination of robust government support, abundant capital, and a deep pool of engineering talent.

Looking ahead, industry observers will be watching closely to see how X Square Robot leverages its new war chest. Potential areas of expansion could include scaling up production of the Quantum robots, accelerating R&D on next-generation AI models, forging deeper partnerships with enterprise customers, or even exploring international markets. Given the caliber of its investors, expectations are high—and so is the potential for disruption.

As the embodied AI race heats up, X Square Robot’s latest funding milestone sends a clear message: the company is not just participating in the future of robotics—it’s helping to define it.

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