AI robotics startup Physical Intelligence is reportedly in talks to raise at least $1 billion at a $20 billion valuation.
Current investors Avenir and Lux Capital are in talks to lead the round, Bloomberg reported, citing people familiar with the matter.
The potential raise would nearly double Physical Intelligence's $11.5 billion valuation following an earlier round this year, according to a person familiar with the deal. The startup's existing backers also include Alphabet's independent growth fund CapitalG, OpenAI, Sequoia Capital and Amazon founder Jeff Bezos, according to its website.
Despite the reported interest and soaring valuation, the company still hasn't generated any revenue, the people said.
Training robots to perform everyday tasks
Founded in 2024 by former Google DeepMind researchers and academics from Stanford University and the University of California, Berkeley, Physical Intelligence develops AI software that can run on a range of hardware systems for robotic movements.
The company's employees are training AI robotic systems for everyday tasks, including packing groceries, folding clothes, opening jars and installing light bulbs, according to a recent job posting.
However, the firm faces competition from similar startups like Skild AI, which unveiled its S1 robotics model capable of learning tasks from a single video in August, as well as larger companies such as Elon Musk's Tesla.
Physical Intelligence made its latest models available for training and inference through its Pi API beta on Oct. 13. The launch prompted increased investor interest, people familiar with the fundraising told Bloomberg.