XPeng’s robotics business has raised over $900 million at a post-money valuation of more than $6.3 billion, the Chinese EV maker announced today. XPeng calls it the largest single-round private financing in the history of China’s embodied AI industry.

The round is meant to push XPeng’s IRON humanoid robot into mass production by the end of 2026 — a timeline that keeps the automaker ahead of Tesla’s stalling Optimus program.

The financing was led by IDG Capital, with participation from Gaorong Ventures and strategic backing from Tencent and Alibaba, according to XPeng.

The company frames the round as validation of its “leadership in Physical AI” and its “ability to scale production.” Of the $900 million-plus committed, roughly $600 million comes from external investors, with about $200 million from an XPeng subsidiary and $100 million from leadership.

The raise comes alongside a corporate restructuring. XPeng is spinning its robotics assets, IP, and staff into a standalone subsidiary over the next 18 months while retaining roughly 82% ownership, which keeps the unit consolidated on the group’s financial statements but gives it a separate market valuation. CEO He Xiaopeng took direct control of the robotics business in June 2026.

XPeng unveiled the next-generation IRON at its AI Day event in November 2025, where the robot’s fluid, human-like walk was so convincing that online viewers accused the company of hiding a person in a costume. He Xiaopeng responded by cutting open the robot’s leg on stage to reveal the wiring underneath.

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