Alibaba Leads $140M Funding in Humanoid Robotics Startup X Square Robot

Shenzhen-based X Square Robot has secured fresh financing of between $100 million and $140 million in a Series A+ round. The deal was led by Alibaba Cloud, marking the tech giant’s first direct investment in embodied intelligence, and joined by HongShan Capital, Meituan, Legend Capital, Legend Star, INCE Capital, and state-backed CAS Investment.

The round adds to the company’s rapid fundraising pace. Depending on the source, the fresh capital is reported as either 1 billion yuan ($140 million) by the South China Morning Post or $100 million by CNBC. With this, X Square Robot has now raised close to 2 billion yuan ($280 million) in under two years—a funding trajectory that underscores investor confidence in China’s humanoid robotics sector.

Founded in late 2023 by Wang Qian, the startup has quickly become one of the country’s most watched robotics players. Wang brings an unusual mix of expertise to the company: he previously ran a quantitative fund in the U.S. and holds a robotics PhD from the University of Southern California, alongside degrees from Tsinghua University. His academic and entrepreneurial background has helped X Square attract both capital and attention.

The company’s roadmap blends software and hardware innovation. Its early products include the Qunta X2, a dual-arm wheeled humanoid robot introduced last month, and the Artixon Hand, designed for precision motor control. On the software side, X Square has open-sourced its WALL-OSS-4.2B foundation model, positioning it as the first of its kind in robotics. By making the model available to outside developers, the startup aims to accelerate adoption and set standards for embodied intelligence.

X Square’s leadership has been clear that the goal is not just functional robots, but autonomous humanoids capable of complex, real-world tasks. From homes and hotels to industrial sites, the company envisions machines that move beyond simple object handling. The dual push—advancing intelligence while iterating hardware—illustrates a belief that useful robots will only emerge when intelligence becomes integral, not optional.

The Qunta X2 shows this approach. Equipped with pressure-sensitive hands and a mop attachment for 360-degree cleaning, it highlights both dexterity and practical use cases. However, pricing remains a challenge: the robot is estimated at around $80,000, well above Unitree’s $16,000 humanoid, though less advanced. X Square argues that mass-market adoption will become viable once unit costs drop to about $10,000, a target it hopes to reach within three to five years as production scales.

Despite its early stage, X Square is already building commercial traction, with deployments in schools, hotels, and elder care facilities. It has begun exploring expansion into Japan and Singapore and is considering a potential IPO as early as next year, though listing details remain undecided. The broader context is equally important: investor interest in embodied AI is accelerating in China, where humanoid robots entered mass production in 2025. Companies such as Unitree Robotics, UBTech Robotics, and LimX Dynamics are raising sizable rounds, while Alibaba and Tencent continue to expand their bets across the robotics value chain.