Apptronik raises $520 million to beat Chinese humanoids, Tesla Optimus to market

Apptronik has successfully raised $520 million in funding, achieving a remarkable valuation of $5 billion. This significant investment aims to propel the commercial rollout of the company's Apollo humanoid robots, positioning them to potentially outperform Chinese rivals and Tesla's Optimus in the race to market. The announcement, made on Wednesday, brings Apptronik’s Series A funding total to an impressive $935 million. The funding round was co-led by B Capital, chaired by Howard Morgan, alongside tech giant Google. Based in Austin, Texas, where Tesla is also located, Apptronik intends to utilize this capital to enhance and ramp up the production of its Apollo humanoids, according to CEO Jeff Cardenas. Currently, early models of the Apollo robots are operational in controlled environments within factories and warehouses, collaborating with strategic partners such as Mercedes-Benz, GXO Logistics, and Jabil. These areas are monitored through external sensors and light curtains, which ensure that the Apollo robots halt their operations if a human crosses a designated boundary. Cardenas emphasized the future design of the Apollo will focus on "collaborative safety," allowing the robots to interact responsibly with humans while performing tasks like transporting parts and sorting. Apptronik faces competition from a diverse range of humanoid developers, including China's Unitree, Figure, Agility Robotics, and 1X. Meanwhile, Tesla is heavily investing in its Optimus project, projecting $20 billion in capital expenditures by 2026 to advance robot and self-driving car production. However, CEO Elon Musk has acknowledged that Optimus remains in its early research phases. In the realm of automation, Cardenas highlighted the appeal of humanoids, noting their ability to perform a multitude of tasks as opposed to traditional robots, which are typically designed for singular functions. Through pilot deployments, Apptronik is collecting valuable data from its fleet, which will help refine their operational systems. The latest funding comes on the heels of a partnership with Google DeepMind, which involves utilizing their Gemini Robotics AI models to enhance Apollo’s capabilities. Recognized as 33rd on the 2025 CNBC Disruptor 50 list, Apptronik originated from the Human Centered Robotics Lab at the University of Texas in 2016, well ahead of Tesla's foray into humanoid robotics. The company has expanded to employ 300 individuals and plans to use a portion of the new funds for growth in Austin and to establish a new office in California later this year. Unlike Musk, who is known for making bold statements, Cardenas is more cautious and has refrained from making public predictions regarding the Apollo's production timeline and features. However, he did mention that more information about the robots' capabilities will be disclosed later this year. Morgan expressed optimism for the future, predicting that demand for the Apollo robots will result in orders worth $1 billion starting in 2027, with hopes that deliveries will reach high volumes at a competitive price of around $80,000 each, akin to the cost of a luxury vehicle. He noted, "Imagine a factory worker operating multiple shifts, even on weekends; $80,000 is indeed a bargain!" Additionally, Morgan anticipates that Apptronik will need to hire at least another 200 employees over the next year to keep pace with the burgeoning interest in humanoid robotics. He emphasized the necessity of securing sufficient funding to ensure the company is taken seriously in this rapidly evolving field.