Summary of Key Points
YusTree Technology has successfully passed its IPO approval, coming one step closer to becoming the “first stock in the humanoid robot industry.” This company, which gained popularity with its robotic dogs, humanoid robot bodies, and motion control technologies (similar to the human cerebellum), is now collaborating with NVIDIA to address the shortcomings of its “brain” component—specifically, its lack of a robust embodied intelligence model. Behind this initiative are top-tier investors such as Lei Jun’s Shunwei Capital, Meituan, Tencent, and Sequoia Capital. Technologically, YusTree has chosen the right approach by focusing on the “three key components of robotics” (battery, motor, and electronic control), which significantly reduces the cost of robots and enables a closed commercial loop. However, in the future, it will face fierce competition from companies like Tesla’s Optimus and OpenAI, as well as the industry-wide challenge of insufficient data for large-scale robot models.
1. Approved! But the Employees Remain Calm? A Decade of Growth from a Small Space to a Large Facility
On the day of the IPO approval, employees at YusTree’s headquarters in Hangzhou went about their daily work as usual, with some still testing the robotic dogs. In the words of an employee, “Everything was normal and natural.” This growth story spans ten years: the company was founded in 2016 with a registered capital of only 100,000 yuan and initially rented less than 100 square meters of space at JinXiu International. Later, it moved to an entire building in the neighboring FengDa Creative Park. Today, they have produced 11,000 units of their humanoid robots and hold a total of 262 patents.
As the company approaches its listing, its early investors have kept a low-profile, only announcing the news through social media updates. Employees are also unaware of any equity incentives, reflecting a pragmatic company culture that focuses on doing things well first before considering rewards.
2. From a Strong “Body” to a Powerful “Brain”: Partnering with NVIDIA for $4.2 Billion in Funding
YusTree’s initial strength lay in its robust robot bodies, which allowed the robots to dance and fight with great agility (thanks to advanced motion control). However, their lack of an intelligent “brain” (a powerful embodied intelligence model) limited their practical applications. The industry recognizes that current large-scale robot models are not yet sufficient for widespread use.
To overcome this, YusTree plans to:
- Focus on Fundraising: It aims to raise $4.2 billion, with nearly half (2.022 billion) dedicated to the development of intelligent robot models.
- Collaborate with NVIDIA: NVIDIA will provide the necessary large model technology, while YusTree will build the physical robots, combining their strengths to solve this issue.
- Data and Computing Power: The company plans to establish a cloud-edge-computing system to collect real-world data (from factories, homes, etc.) to train the models to perform tasks autonomously.
3. Top Investors Are All Betting on YusTree: Lei Jun Expresses Gratitude, Meituan Is the Largest External Investor
YusTree has a impressive list of investors, including:
- Lei Jun’s Shunwei Capital: Invested in 2021; Lei Jun publicly thanked them for providing the investment opportunity five years ago during the Xiaomi SU7 launch event.
- Meituan: Holds a 9.65% stake through Hanhai Information and other companies, making it the largest external investor.
- Tencent, Sequoia Capital, and Shenzhen Venture Capital: Also on the list of investors.
- Early Investor Story: Xiangfeng Investment invested during a downturn in 2020 when the application for robotic dogs was not yet clear. The decision to invest was based on founder Wang Xingxing’s confidence in demonstrating the technology—“No other founder had the courage to show off a real product at that time.”
These investors not only provide financial support but also valuable resources, such as Meituan’s access to various use cases and Tencent’s technological expertise.
4. The Right Technical Path: Reducing Costs to Make Robots More Accessible
Foreign robots (like Boston Dynamics’ Atlas) use hydraulic systems, costing millions of dollars and out of reach for most people. YusTree adopted the “three key components” approach, which significantly reduced costs:
- Cost Reduction: The cost of four-legged robots dropped from 22,300 yuan in 2022 to 12,100 yuan in 2025, and humanoid robots decreased from 73,200 yuan to 62,200 yuan.
- Commercialization Loop: The company generates revenue through research, teaching (selling robots to universities), and entertainment performances, creating a positive cash flow.
- Technological Progress: Deep reinforcement learning allows the robots to learn movements independently, eliminating the need for manual parameter tuning. For example, their robotic dogs can now climb stairs and do stunts.
This approach not only helped YusTree survive in the early stages but also allowed it to accumulate extensive user data.
5. Future Challenges: Facing Competitors Like Tesla’s Optimus and OpenAI
YusTree faces increasingly strong competitors:
- Tesla’s Optimus: Scheduled for mass production by the end of 2026, with an annual capacity of one million units, equipped with advanced autonomous driving technology and computing power.
- OpenAI: Has established a robotics division, covering the entire value chain from algorithms to physical products.
- Domestic Competitors: Tech companies and automotive manufacturers are also entering the humanoid robot market.
- Industry Challenges: The lack of real-world data for large-scale robot models remains a significant issue (for example, robots need practical use cases in factories for effective training).
YusTree’s strategies include making its models open-source to encourage global developers to improve them, building manufacturing bases to reduce costs, and expanding into new areas such as fitness equipment using robotic technology.
In Conclusion
YusTree Technology’s IPO approval is a milestone, but to succeed globally, it still needs to enhance its intelligent models, further reduce costs, and find more practical applications for its robots. The road ahead is long, but with these efforts, YusTree has a promising future.