Alibaba has led a huge $100 million funding in Chinese robotics startup X Square Robot, fueling explosive growth in embodied AI and robotics within China’s tech sector. The deal is a strategic one by Alibaba and investors for next-generation automation and the way forward for “robotic butlers” within households and enterprises.
Key Facts at a Glance
- Lead Investor: Alibaba Cloud
- Total Funding for X Square Robot: ~$280 million
- Open-Source AI Initiative: Wall-OSS model launched
- Mass-Market Pricing Goal: $10,000 per robot in 3–5 years
- IPO Target: 2026
- Market Projections: $42 billion (China, 2035), $7 trillion (global, 2050)
Alibaba’s Strategic Investment
Alibaba leads $100 million investment in Chinese humanoid robot startup https://t.co/zYY0WyaRai
— CNBC (@CNBC) September 8, 2025
Alibaba Cloud revealed the $100 million funding, joined by the top investors such as HongShan (Sequoia China), Meituan, Legend Star, and INCE Capital. The robot startup has a cumulative $280 million in funding, ranking it among China’s leading robotics startups.
Alibaba’s cloud business is central to this endeavor, aligning with the company’s $53 billion AI infrastructure roadmap and Beijing’s “Made in China 2025” policy for technological know-how.
What X Square Robot Does
X Square Robot, headquartered in Shenzhen, designs humanoid robots and AI foundation models to tackle complex, real-world tasks. Its proprietary AI software, called Wall-OSS, provides open-source code to users across the globe, resulting in easier robotics innovation.
The startup recently launched Quanta X2, a wheeled humanoid robot capable of advanced cleaning and pressure-sensitive manipulation, targeting service, household, and industrial use cases.
Market Trends and Global Race
The investment is reflective of a global frenzy for humanoid robots as part of a general race to revolutionize both residential and industrial automation. China’s policy initiatives like “Made in China 2025” and population dynamics have pushed robotics to the front as a national priority.
X Square Robot is targeting mass markets, with a goal of lowering the price of robots from where they are today, at $80,000 to $10,000 within five years, and going public in 2026. The domestic market for the country’s humanoid robots is estimated to touch $42 billion in 2035, analysts predict.
Technological and Industry Impact
X Square Robot’s platform integrates generative AI and embodied intelligence, setting the stage for next-generation service and household robots. The open-source Wall-OSS model is an industry first, giving developers free access to foundational robotics code and promoting broader ecosystem growth.
The combination of hardware, advanced software, and cloud-based AI infrastructure reflects Alibaba’s vision of leading future automation infrastructure across China and beyond.
Expert Commentary and Future Outlook
Industry experts are of the view that the humanoid robotics market is in its nascent stage, and tremendous advancements will be made as AI algorithms become smarter and more affordable. X Square Robot’s COO opines that fully autonomous and highly intelligent robots could be developed over the course of the next few years, which could turn “robotic butlers” into reality.
While technical and regulatory hurdles remain, Alibaba’s investment positions it at the forefront of China’s robotics renaissance, with structural advantages from its cloud, chip, and AI investments.