Figure AI, a robotics startup headquartered in Sunnyvale, California, has emerged as one of the boldest players in the artificial intelligence and robotics space. Founded by tech entrepreneur Brett Adcock, the company has captivated the global tech community with its pursuit of building humanoid robots that can replicate human labor at scale.
In early 2025, Figure AI began raising a staggering $1.5 billion in a fresh Series C funding round. The company set its sights on a valuation of $39.5 billion—an audacious leap from its last reported valuation of $2.6 billion in 2024. This valuation would position Figure AI among the most valuable robotics companies in the world, despite the fact that it has yet to generate revenue or bring a commercial product to market.
The Vision Behind Figure AI
Brett Adcock, who previously co-founded Archer Aviation, launched Figure AI with a clear goal: to design humanoid robots capable of performing physical tasks with human-like agility and intelligence. The company believes these robots can solve critical labor shortages in key industries such as manufacturing, logistics, and domestic services.
Figure AI’s flagship robot, called Figure 01, represents the company’s bold ambition. Standing nearly six feet tall and designed with a human-like form, Figure 01 aims to move, see, think, and perform repetitive tasks in dynamic real-world environments. The robot can walk, lift objects, use tools, and interact with surroundings through onboard sensors and AI-powered vision.
The company expects to deploy more than 200,000 robots by 2029 and projects an annual revenue of $9 billion by then. These projections hinge on the successful evolution of both hardware and software platforms that can scale reliably across use cases and environments.
Strategic Collaborations and Prototype Testing
Figure AI has begun piloting its robots in controlled industrial settings. The company established a partnership with BMW and deployed early prototypes at BMW’s manufacturing facility in Spartanburg, South Carolina. These robots currently perform basic tasks such as lifting parts and moving objects during off-production hours.
While the current number of robots in use remains small, the collaboration with BMW offers Figure AI a valuable test bed for refining the robots’ performance in a real-world industrial environment. The company’s engineering team uses insights from this partnership to improve robot reliability, motion planning, and manipulation capabilities.
Figure AI’s goal is to enable robots like Figure 01 to handle physically demanding, repetitive tasks in factories, warehouses, and even homes. The robots will relieve human workers of labor-intensive duties, increase productivity, and address labor gaps in key industries that struggle to fill essential roles.
In-House AI Breakthroughs and an End to the OpenAI Partnership
In 2024, Figure AI partnered with OpenAI to integrate advanced artificial intelligence into its robots. However, in 2025, the company decided to terminate this partnership. According to company insiders, Figure AI achieved significant breakthroughs in developing its own in-house AI models optimized for robotics, which made external collaboration less necessary.
The decision to part ways with OpenAI reflects Figure AI’s desire to control its core technologies. By building proprietary AI, the company can ensure tighter integration with its hardware and tailor intelligence systems specifically for physical interaction, rather than adapting general-purpose AI models.
The team now focuses on enhancing natural language understanding, real-time decision-making, and situational awareness within their AI framework. These improvements will allow Figure 01 to adapt fluidly to unpredictable environments, take verbal commands, and interact safely with humans.
The Funding Chase and Investor Reactions
Figure AI’s attempt to raise $1.5 billion in new capital comes at a time when investor appetite for AI and robotics remains high. The company held preliminary talks with major investment firms including Parkway Venture Capital and Align Ventures to lead the round.
In 2024, Figure AI raised $675 million from a mix of tech heavyweights and institutional investors. Microsoft, OpenAI, Amazon founder Jeff Bezos, and Nvidia participated in that round, lending credibility and attention to the startup’s efforts.
The proposed $39.5 billion valuation, however, has sparked mixed reactions. Supporters view Figure AI as a once-in-a-generation opportunity to disrupt labor markets with humanoid automation. Skeptics, on the other hand, question whether the company can meet its timeline, scale production, and deliver functional robots that justify such an extraordinary valuation.
Despite the enthusiasm, Figure AI has yet to generate revenue or deliver a commercial product. Investors now wait for tangible progress that can validate the ambitious claims and justify the rising valuation.
Competing in the Humanoid Robotics Race
Figure AI operates in a crowded and highly competitive field. Other major companies, including Tesla and Meta Platforms, have entered the humanoid robotics space. Tesla, under Elon Musk, introduced Optimus, a humanoid robot designed to assist in manufacturing tasks. Meta is also experimenting with AI-powered robots as part of its long-term vision for the metaverse and physical computing.
These rivals bring enormous resources, engineering talent, and research capabilities to the table. To stay ahead, Figure AI must accelerate its development timeline, reduce costs, and establish product-market fit before its competitors achieve mass production.
The company’s relatively lean structure and focus on a single core product could help it maintain agility. At the same time, the pressure to execute flawlessly continues to mount as more capital flows into the sector and investor expectations climb higher.
Challenges Ahead
Despite the momentum, Figure AI faces several formidable challenges on its path to commercialization:
- Scaling Hardware Production
The transition from prototype to mass production will require massive investments in robotics manufacturing. The company must build a reliable supply chain, establish assembly lines, and maintain consistent quality at scale. - Regulatory and Ethical Concerns
Humanoid robots operating in public or workplace environments will draw attention from regulators. Figure AI must navigate complex safety standards, labor laws, and privacy regulations to ensure responsible deployment. - AI Safety and Public Trust
The company must prove that its AI models can make safe decisions, interact with humans respectfully, and avoid unintended consequences. Building public trust around humanoid robots requires transparency and rigorous testing. - Revenue Timeline
With no immediate product revenue, Figure AI relies heavily on investor capital to sustain operations. Delays in commercialization could strain cash flow and force strategic pivots.
Looking to the Future
Figure AI represents the bold ambition and daring innovation that define Silicon Valley’s most iconic startups. The company believes deeply in the power of robotics to reshape the future of work and human productivity. Its engineers, investors, and partners share a vision of a world where humanoid robots perform essential tasks alongside human workers—not as replacements, but as collaborators.
The next two years will prove pivotal. If Figure AI can deliver a commercially viable robot, scale production, and secure market demand, it could define a new category in robotics—one that brings science fiction closer to reality. If it fails, the story may serve as a cautionary tale about hype and overvaluation in an era of aggressive technological speculation.
For now, Figure AI continues to charge ahead. With billions in backing, an all-star team of engineers, and a clear mission, the company marches toward a future where humanoid robots work, learn, and evolve—right beside us.