Austin-based robotics startup Apptronik is in advanced discussions to secure at least $400 million in fresh funding, potentially valuing the company at a staggering $5 billion pre-money, according to sources familiar with the matter. This move comes amid a heated race in the humanoid robotics sector, where companies are vying to develop versatile machines capable of performing human-like tasks in warehouses, factories, and beyond.

The funding round, led by existing investor B Capital, underscores the growing investor enthusiasm for humanoid robots, propelled by advancements in AI and the promise of addressing labor shortages in various industries. Apptronik, known for its Apollo robot, has already garnered attention from tech giants, including a previous investment from Alphabet’s Google.

Rising Stakes in Humanoid Robotics

Apptronik’s journey began as a spinout from the University of Texas at Austin in 2016, initially focusing on robotic legs for NASA’s Valkyrie project. The company has since pivoted to full humanoid robots, with its flagship Apollo designed for tasks like lifting boxes and navigating dynamic environments. In February 2025, Apptronik raised $350 million in a Series A round co-led by B Capital and Capital Factory, with participation from Google, as reported by CNBC.

This earlier infusion allowed Apptronik to scale production and deploy Apollo in pilot programs with partners like Mercedes-Benz and GXO Logistics. “We’re creating the world’s most advanced and capable humanoid robots, designed to work alongside humans in meaningful and transformative ways,” said Jeff Cardenas, CEO and co-founder of Apptronik, in a statement from the company’s announcement, per Apptronik’s official site.

Details of the Latest Funding Talks

The current fundraising effort, if successful, would mark a significant valuation jump from its previous rounds. Sources indicate the round could exceed $400 million, positioning Apptronik among the most valuable startups in the robotics space. This development was first reported by The Information, highlighting how Apptronik is stockpiling capital to compete with rivals like Tesla’s Optimus.

Investor interest is fueled by the broader humanoid robotics boom, with companies like Figure AI and 1X Technologies also securing massive funding. Posts on X (formerly Twitter) from users like Techmeme have amplified the news, noting Apptronik’s Google backing and the $5 billion pre-money valuation talks, reflecting real-time sentiment in the tech community.

Strategic Partnerships and Technological Edge

Apptronik’s appeal lies in its integration of AI with robust hardware. The company has partnered with Nvidia for AI capabilities and NASA for advanced robotics testing. A March 2025 funding update from Tracxn reported Apptronik raising an additional $53 million, bringing its total funding to $436 million across seven rounds, with investors including Mercedes-Benz and Magnetar.

These partnerships are crucial as Apptronik aims to deploy Apollo at scale. In a September 2025 insight from Automate.org, Apptronik outlined plans to debut an updated Apollo humanoid in 2025, emphasizing safety and efficiency for human-robot collaboration. “Commercializing humanoids at scale is one of the world’s most difficult technical challenges,” noted investor Andrew Kang in an X post about his investment in Apptronik’s Series A.

Competitive Landscape and Market Potential

The humanoid robotics market is heating up, with Tesla’s Elon Musk touting Optimus as a game-changer for labor-intensive tasks. Apptronik positions itself as a collaborative player, focusing on robots that augment human workers rather than replace them. Reuters reported in February 2025 that the $350 million raise would help scale production to meet surging demand.

Industry analysts see immense potential. A GlobeNewswire release from the same period described the funding as backing Apptronik in the race to deploy humanoid robots at scale. Recent news from BizToc, published just hours ago, confirms ongoing talks for the $400 million round at $5 billion valuation, led by B Capital.

Investor Confidence and Valuation Dynamics

Google’s involvement adds credibility, with X posts from users like amit highlighting the tech giant’s participation in the February round. “Raising a $350M Series A only shows the level of scale investors believe this industry can have,” amit posted, capturing the optimism surrounding Apptronik.

The proposed $5 billion valuation reflects broader trends in AI and robotics investments. TechCrunch noted in its February 2025 coverage that Apptronik, a University of Texas spinout, has been building humanoids before it became fashionable, now benefiting from the AI hype cycle.

Challenges Ahead for Apptronik

Despite the momentum, challenges remain, including technical hurdles in making humanoids reliable and cost-effective. Apptronik’s history includes building prototypes for Sanctuary AI, which later sold its stake for $125 million after acquiring it for $10 million, as per an X post from The Humanoid Hub in April 2025.

Regulatory and ethical considerations also loom, particularly in sectors like elder care, where Apptronik envisions future applications. PYMNTS.com reported on the February funding, emphasizing Apptronik’s focus on meaningful robot-human work interactions.

Broader Implications for the Robotics Industry

This funding push could accelerate innovation across the sector, encouraging more startups to enter the fray. Finimize highlighted in October 2025 a $64,500 private fund bet on Apptronik’s human-focused robot vision, signaling confidence in its approach.

As Apptronik negotiates this round, the robotics world watches closely. The company’s ability to translate funding into deployable technology will determine if it can lead the humanoid revolution, amid competition from established players like Tesla and emerging startups alike.