Xspark AI Raised Nearly 100 Million Yuan for Physical AI Development

Chinese startup Xspark AI (无界智航), developer of trusted Physical AI solutions, closed its first funding round in July 2026 — a seed round of nearly 100 million yuan (approximately 14 million dollars). This was reported by Chinese media outlet 36Kr, citing investor CDH Investments.

Who invested in the round

The round was led by three funds at once — the venture division of CDH Investments (鼎晖VGC), Chuxin Capital (初心资本) and SEE Fund (无限基金). Shenzhen Angel Mother Fund (深圳天使母基金) and Shuimu Alumni Seed Fund (水木校友种子基金) acted as co-investors — both specialize in seed and angel investments in Chinese technology startups.

• Round size — nearly 100 million yuan (~14 million dollars)
• Lead investors — CDH VGC, Chuxin Capital, SEE Fund
• Co-investors — Shenzhen Angel Mother Fund, Shuimu Alumni Seed Fund
• Use of funds — development of core technologies, product refinement, scaling of Physical AI solutions

According to the company, the raised capital will be used for developing key technologies, refining products, and commercial scaling of Physical AI solutions.

What is Physical AI

Physical AI is a field at the intersection of artificial intelligence and robotics, where models control physical devices: manipulators, drones, autonomous platforms. Unlike chatbots and generative models, such systems make decisions based on real-time sensor data and directly interact with the physical world. The prefix "trusted", which Xspark AI uses in its positioning, usually implies an emphasis on safety and predictability of autonomous systems behavior — a critical parameter for industrial and commercial robot applications.

On the global market, Physical Intelligence and Figure AI from the US, as well as Chinese companies Unitree Robotics and AgiBot, work in a similar niche — competition for capital and talent in the embodied AI and humanoid robotics segment is intensifying on both sides of the Pacific. Chinese authorities have included physical AI and robotics among priority areas of technological development, which spurs local venture funds' interest in startups like Xspark AI.

What it means

Xspark AI's seed round is another signal that Chinese venture capital is betting on Physical AI as the next major segment after generative language models, where competition between startups and global laboratories is just beginning.