Summary of Key Points
Recently, the field of embodied intelligence (which refers to robots that can perceive and act like humans) has seen a counterintuitive phenomenon: many companies focused on developing the physical bodies of robots are simultaneously seeking investors to fund their operations and using the funds they have just obtained to invest in other smaller companies within the industry chain—those specializing in robot “brains,” data, sensors, etc. Even competitors may jointly invest in the same company. This approach of “financing while investing” breaks with traditional practices, where only large companies with stable cash flows would consider making such investments. Behind this is a race among industry players to gain control of the supply chain. However, there are also doubts about the rationality of taking such risks with someone else’s money.
Detailed Analysis
1. Why do companies developing robot bodies “finance while investing”? – To gain time and compete for dominance in the supply chain
- Surface reason: The industry is highly competitive, and time is of the essence.
The embodied intelligence supply chain is extremely long, encompassing everything from the robots’ “brains” (models) and “eyes/arms” (sensors) to joints, data, and operating systems. No single company can dominate all these aspects. However, with the fast pace of competition, the one that completes the entire chain first will be able to mass-produce and profit sooner. Instead of starting from scratch (which could take several years), it’s more efficient to invest in a company that is already established, using equity to acquire its technology and team. This essentially means “exchanging equity for time.”
- Underlying reason: The goal is to become the “chain master” and set industry standards.
The company that can integrate the most resources within the supply chain will have the upper hand, as it can dictate rules. For example, Zhiyuan has invested in over 40 embodied intelligence companies, covering the entire production process from components to applications; Leju Robot has also invested in nearly a dozen companies, spanning various aspects of the supply chain. These investments are not aimed at generating dividends but at building their own ecosystem. Once everyone uses their data platform or operating system, it becomes more costly for others to integrate, giving them control over the industry.
2. Where does the investment money go? – Focus on key links in the supply chain
Investments by companies developing robot bodies are primarily aimed at making robots more useful and ready for practical use, focusing on the following areas:
- Robot “brains” (basic models/system platforms): Delta Intelligence, which develops foundational models for robots (the “thinking framework”), has received joint investments from Zhiyuan, Xinghaitu, and other companies because its models can be integrated with their robots, securing a stable supply chain. Oak Tree Qingxi’s system platforms can reduce the time required to adapt algorithms from months to days, enabling faster mass production.
- Data infrastructure: Kaiwang Data, which provides data for robot training, has been invested in by several companies, creating a closed loop where data collection directly meets their needs.
- Sensors: Poke Robot, founded just three months ago, invested in Hui Guang Innovation, which specializes in tactile sensors, as it plans to develop consumer robots for tasks like folding clothes and organizing items, requiring precise sensory feedback.
- Fundamental cognitive support (world models): Mo Ke Robot’s world models, which help robots understand the physical world, have received investment from Zhijian Power; this is crucial for transitioning from demonstration to practical use.
3. Why do competitors invest in the same company? – Fear of being bottlenecked and falling behind
It’s rare for leading companies like Zhiyuan and Xinghaitu to jointly invest in Delta Intelligence, but the logic behind this is that these areas (such as basic models and system platforms) are essential public infrastructures. If monopolized by one company, others could be at a disadvantage (for example, not being able to use their models). By investing together, they can share resources and maintain a voice in decision-making, ensuring no single entity dominates the market.
4. What are the controversies surrounding this approach? – Is it just a capital game?
The main concern is the source of the funds: companies developing robot bodies have not yet turned a profit, and the money they raise comes from investors. Using these funds to invest in other startups involves taking risks with someone else’s capital. Some investors argue, “Startups seek funding because they lack resources; using investor money for venture capital investment is unusual.”
This “financing one hand and investing the other” approach could lead to a race to inflate valuations through speculative capital moves, creating an illusion of growth without actual industrial development.
5. Why is the pace of investment accelerating? – It indicates intensified competition for market dominance
Previously, Yubixuan took six years to make its first external investment; now, Poke Robot has invested just three months after its establishment. Nearly half of the embodied intelligence companies’ initial investments were made this year, with eight of them occurring in the past two months. This shows that industry players are racing to secure strategic positions, fearing to miss any potential game-changer technologies. The competition has shifted from focusing on product development to quickly acquiring resources.
Conclusion
The practice of “financing while investing” in the embodied intelligence field is both an efficient way for rapid industry consolidation and a potential source of capital speculation. Whether it will accelerate industrial maturity or merely inflate bubbles remains to be seen. One thing is clear, however: the battle for control of the robot supply chain is already intense.