XPeng Inc. (NYSE: XPEV) announced that its robotics business has raised over $900 million in a funding round that values the unit at more than $6.3 billion post-money, according to a press release issued Aug. 24, 2026.

The round was led by IDG Capital, with participation from Gaorong Ventures and strategic investment from Tencent and Alibaba. XPeng described the raise as the largest single-round private financing in China's embodied AI industry to date. XPeng said it will retain controlling ownership of the robotics business, which will continue to be consolidated into the group's financial statements.

Proceeds are intended to fund software and hardware research and development, Physical AI model training, data generation, mass production facilities, and global commercial expansion.

The robotics unit's flagship product, XPENG IRON, is a humanoid robot with 76 degrees of freedom across its body and 21 in each hand. The robot is powered by three in-house Turing AI chips delivering up to 2,250 TOPS of computing power. XPeng said the robot is built on a fully integrated, in-house technology stack covering hardware and software, including chips, controllers, motion modules, and dexterous hands.

XPeng said IRON is expected to enter mass production by the end of 2026, with initial deployment at its own stores and campuses. Commercial launches and deliveries in China and overseas markets are planned for 2027.

He Xiaopeng, Chairman and CEO of XPeng, said the funding "provides the resources needed to accelerate the growth of our robotics business, while strengthening our ability to attract more world-class Physical AI talent."