Embodied AI startup X Square Robot becomes unicorn, valuation rises to $2.8B

Shenzhen, China-based X Square Robot on Wednesday, July 1, saw its valuation surpass $2.8 billion (RMB 20 billion) following four consecutive funding rounds, culminating in a Series C, thus becoming a unicorn.

The rounds saw participation from IDG, while HongShan and Xiaomi had backed the company in multiple previous rounds.

Combined with earlier lead investments from Meituan, Alibaba, ByteDance, and Xiaomi, X Square Robot said that it has become the only embodied AI company in China to secure lead-round backing at different stages from four of the country’s leading technology companies.

Founded in 2023, the company develops end-to-end embodied AI systems that combine foundation models, robotics hardware, and a proprietary data pipeline. Rather than relying on traditional rule-based automation, its approach enables robots to adapt to changing environments and generalise across a wide range of tasks.

Earlier in April, X Square Robot introduced WALL-B, an embodied AI foundation model built on its World Unified Model architecture. Unlike modular vision-language- action (VLA) approaches, its model trains perception, language, action, and physical prediction within a unified network, enabling stronger multimodal understanding, spatial reasoning, and continual learning from real-world interactions, the company said in a press release.

X Square Robot has open-sourced WALL-OSS-0.5 and WALL-WM, extending its unified approach to robot manipulation and world modelling.

According to the company, WALL-OSS-0.5 achieved over 80% autonomous completion on four of 17 real-robot tasks without post-training. Meanwhile, WALL-WM introduces event-level prediction by aligning language, vision, and action data around meaningful events, enabling stronger cross-modal learning and physical-world prediction across reasoning, manipulation, and generalisation tasks.

It has also built a scalable, model-driven data pipeline spanning automated data collection, cleaning, annotation, quality control and augmentation. Combined with real-world deployment, the system enables rapid model iteration while creating high-quality datasets for complex, long-tail scenarios.

X Square Robot has deployed its model and hardware stack across household, industrial, and logistics scenarios. It has partnered with 58.com to launch an AI-powered cleaning service in Shenzhen and Beijing, where robots work alongside human cleaners in real residential environments.

Earlier in May, the company launched an X Family Member Program, where robots live with users’ families for up to one month as household companions, responding to a broader range of everyday needs, it said.

Further, it is introducing model-powered robots into automotive supply-chain production lines, complex logistics workflows such as intelligent sorting and flexible parts feeding, and eldercare facilities, where they can support delivery, companionship, cleaning, organisation and safety patrols.