Alibaba Leads $140M Funding for X Square Robot's Humanoid AI Expansion

Alibaba co-led a $140 million funding round in Shenzhen-based robotics startup X Square Robot, expanding into the humanoid and AI sector. The funding round was led by Alibaba's cloud division, with Alibaba and other investors participating. This move marks Alibaba's entry into the robotics and AI market.

Alibaba Group Holding Ltd. has co-led a $140 million funding round in Shenzhen-based robotics startup X Square Robot, marking the Chinese e-commerce giant's entry into the AI and humanoid robotics sector. The funding round was led by Alibaba's cloud division, with other investors, including HSG, Meituan, and Legend Star, participating [1].

X Square Robot, founded in 2023, focuses on developing AI systems that enable robots to understand instructions and perform tasks autonomously. The startup has released an open-source foundation model for embodied AI, named Wall-OSS, which is designed to compete with OpenAI-backed Physical Intelligence [2].

Alibaba's investment in X Square Robot is part of its broader strategy to spend $53 billion on AI infrastructure over the next three years. The company aims to leverage AI advancements to create a new generation of smarter robotics. This move aligns with Beijing's national priority to develop the robotics sector, which Citigroup expects to reach a global size of $7 trillion by 2050 [1].

The funding round comes at a time when Chinese robotics firms are gaining global attention. Many local startups are showcasing their creations in marathons and boxing matches, drawing significant investment from state-backed funds. Alibaba's investment in X Square Robot further solidifies its position in the advanced technology sector, joining its previous investments in Unitree Robotics and Deeproute [2].

X Square Robot's Chief Operating Officer, Yang Qian, stated that while AI for robots is still lagging behind generative AI advancements, the company aims to develop ChatGPT 3.5-type capabilities within the next 12 months. This strategic move positions Alibaba to stay competitive in the rapidly evolving AI and robotics landscape [2].

Alibaba's investment in X Square Robot underscores its commitment to advanced technologies, following its recent release of the Qwen-3-Max-Preview AI model, which features more than 1 trillion parameters. This model outperforms previous versions and competes with industry giants like OpenAI and Google DeepMind [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-08/alibaba-leads-140-million-funding-round-in-x-square-robot
[2] https://stocktwits.com/news-articles/markets/equity/alibaba-cloud-leads-100-m-bet-on-chinese-startup-eyeing-humanoid-robot-market/chwWN6FRdA5
[3] https://www.scmp.com/tech/big-tech/article/3324684/alibaba-releases-biggest-ai-model-date-rival-openai-and-google-deepmind?module=latest&pgtype=homepage