Physical Intelligence, an artificial intelligence startup developing software for robots, is reportedly in discussions to raise at least $1 billion in fresh funding at a valuation of approximately $20 billion, according to Bloomberg.
The proposed financing would nearly double the San Francisco-based company's valuation of $11.5 billion from an earlier funding round in 2026, as investors continue to back companies developing AI systems capable of performing physical tasks.
Existing investors Avenir and Lux Capital are in talks to lead the funding round, Bloomberg reported, citing people familiar with the discussions. However, the negotiations remain at an early stage, and the final investment amount and valuation have not been confirmed.
The reported valuation comes despite Physical Intelligence having generated no revenue so far, according to people familiar with the company's operations.
Founded in 2024 by former Google DeepMind researchers and academics associated with Stanford University and the University of California, Berkeley, Physical Intelligence is developing general-purpose AI models designed to control different types of robots.
Unlike companies focused on manufacturing robotic hardware, Physical Intelligence concentrates on building software that can operate across machines developed by different manufacturers.
Its technology is being trained to perform everyday physical activities, including folding clothes, sorting objects, packing groceries and installing light bulbs. The company aims to develop models capable of adapting to different environments and completing tasks that require physical interaction.
Earlier this month, Physical Intelligence introduced beta access to its latest robotics models through an application programming interface, allowing external developers to train and customise the systems for their own robotic hardware.
The move reportedly attracted additional investor interest by opening the company's technology to developers working on applications beyond its internal research programmes.
Physical Intelligence has previously received backing from investors including Alphabet's CapitalG, Thrive Capital and Amazon founder Jeff Bezos.
The company operates in the emerging field of physical AI, also known as embodied AI, which focuses on enabling machines to interpret their surroundings and perform actions in the physical world.
Competition in this segment is increasing as technology companies and robotics startups develop AI systems for industrial automation, logistics and other applications.
Among its competitors is Skild AI, another robotics software developer that reached a valuation of approximately $14 billion during a funding round in January 2026. The company subsequently reported that its annual recurring revenue had exceeded $100 million.
Larger technology companies, including Tesla and OpenAI, are also pursuing robotics-related AI development.
The reported fundraising discussions come as investors assess the commercial potential of general-purpose robotics models, although widespread deployment remains dependent on technical performance, reliability and operating costs.
Physical Intelligence has not publicly confirmed the proposed funding round, and no agreement has been announced. The company's valuation and fundraising terms could change as discussions progress.
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