Robotics AI startup Physical Intelligence is in talks to raise money at a valuation of about $20bn. It builds AI software that lets robots handle real-world tasks. Rebecca Torrence and Natasha Mascarenhas reported the talks for Bloomberg on Tuesday, citing people familiar with the matter.

The round would raise at least $1bn and nearly double the company's valuation. Existing backers Avenir and Lux Capital are in talks to lead it, according to Bloomberg. TNW has not independently verified the report.

Physical Intelligence raised money at an $11.5bn valuation earlier this year, Bloomberg reported. The people it spoke to said the company does not yet have revenue.

Models for other companies' robots

Former Google DeepMind researchers and academics from Stanford University and the University of California, Berkeley, founded Physical Intelligence in 2024. Its backers include CapitalG, Alphabet's independent growth fund, Amazon founder Jeff Bezos and Thrive Capital, according to Bloomberg.

The company says its AI can run on robots built by other makers and handle a wide range of movements. On 13 October, it opened its latest models to outside developers through a beta API. Developers can upload data, fine-tune the models and run them on their own robots. The beta has lifted investor interest in the round, Bloomberg's sources said.

“Real-world robotic applications are not easy: tackling robotic construction, robotic surgery, or warehouse automation each requires an entire company,” Physical Intelligence wrote in its launch post.

Rivals include OpenAI, which is hiring for robotics. Tesla is also in the race, and Elon Musk compares training Optimus robots to raising a toddler.

Skild AI, another startup building software that helps robots learn, was valued at $14bn in January. In September it said its annual run-rate revenue had passed $100M.