The funding round, led by IDG Capital with participation from Gaorong Ventures and strategic backing from Tencent and Alibaba, signals a pivot toward industrial-scale deployment. XPENG intends to use the capital to accelerate R&D for its Physical AI models and expand its manufacturing infrastructure. The company plans to bring its IRON humanoid robot—which features 76 degrees of freedom and is powered by proprietary Turing AI chips—to mass production by the end of 2026.

He Xiaopeng, Chairman and CEO of XPENG, stated that the investment reinforces the company’s commitment to full-stack, in-house development. By leveraging manufacturing expertise honed in the electric vehicle sector, XPENG aims to transition humanoid robotics from lab-based demonstrations to real-world commercial applications. Initial deployment is scheduled for company stores and campuses before a broader rollout in 2027. Despite the significant external investment, XPENG will retain controlling ownership of the robotics business, which will remain consolidated within the group's financial reporting.