X Square Robot has surpassed a US$2.8 billion valuation after closing four consecutive financing rounds, marking a significant milestone for the Chinese robotics developer.

The capital injection is earmarked for the advancement of physical AI foundation models, a sector that is increasingly viewed as the next frontier for artificial intelligence deployment beyond software and digital services.

The funding rounds underscore a shift in venture capital focus toward embodied AI, where algorithms are integrated directly into physical hardware.

X Square Robot aims to leverage this capital to accelerate the commercial deployment of its foundation models, which are designed to enable robots to perceive, reason, and act in complex real-world environments.

This move positions the company at the forefront of a competitive race to define the standards for general-purpose robotics.

Investor confidence in the physical AI sector remains robust, even as broader tech valuations face scrutiny.