Crunchbase data highlights surge in robotics startup funding as china and U.S. lead physical AI investments

Crunchbase data reveals a significant surge in venture funding for robotics startups in Q3 2026, with global investments reaching $9.9 billion, more than double the $4.3 billion recorded in Q3 2025. This marks the third consecutive quarter with over $10 billion in robotics funding, reflecting a 185% year-over-year increase. China and the U.S. led the investment, with $13.2 billion and $12.1 billion respectively, while Germany received $1.7 billion. Notable rounds included Xpeng Robotics’ $900 million raise and AI² Robotics’ $736 million Series C in China, and Atoms and Skild AI’s billion-dollar rounds in the U.S. Germany’s Neura Robotics also secured $1.4 billion for cognitive robots. Ulrik Stig Hansen, co-CEO of Encord, emphasized that physical AI is in its pre-training phase, requiring extensive data collection and multimodal input for real-world applications. He noted the challenges of storing and validating large datasets for physical AI systems. Around 75 robotics companies have reached unicorn status, with 45 joining this year. Despite the growth, the sector’s future remains uncertain as companies push for breakthroughs in the coming year.