Alibaba Leads $140 Million Funding Round in X Square Robot

Alibaba Group Holding Ltd. has taken a bold step in advancing its artificial intelligence strategy. The Chinese e-commerce giant co-led a $140 million Series A+ funding round in X Square Robot. The deal comes as part of Alibaba’s $53 billion AI infrastructure commitment over the next three years. Consequently, the company is positioning itself at the forefront of robotics innovation, while at the same time aligning with Beijing’s push to develop advanced technologies.

Strong Investor Backing

The funding round was co-led by Alibaba Cloud and state-backed CAS Investment Management Co. In addition, investors such as HSG, Meituan, and Legend Star participated. Therefore, the combination of corporate and government support gives X Square a strong foundation to scale its vision. Moreover, the deal highlights China’s strategy of merging private innovation with public capital.

X Square’s Distinct Strategy

Founded in 2023, X Square Robot takes a different route compared with many rivals. While companies like Unitree Robotics emphasize hardware, X Square prioritizes algorithms and intelligent systems. As a result, its technology aims to deliver smarter and more adaptable robots for long-term industrial use. According to CEO Wang Qian, this approach will give X Square an edge as industries demand scalable and efficient solutions.

Launch of Wall-OSS

Earlier this week, the startup introduced Wall-OSS, its open-source foundation model. By contrast, competitors such as OpenAI-backed Physical Intelligence are pursuing closed development systems. Therefore, X Square’s open-source release could accelerate adoption and encourage collaboration across the robotics community. At the same time, it underscores the company’s ambition to shape the next generation of intelligent machines.

Product Portfolio Today

Currently, X Square offers three products: two wheeled robots and a robotic arm. However, many rivals have focused on humanoid robots designed for exhibitions, marathons, or boxing matches. Instead, X Square emphasizes practical robots that serve logistics and manufacturing. Consequently, the company is carving out a distinct position in China’s competitive robotics landscape.

The Bigger Picture

The investment also reflects a global trend. Indeed, state-backed funds are pouring into robotics, a sector Citigroup projects will reach $7 trillion by 2050. Therefore, Alibaba’s bet on X Square is not simply financial — it is strategic. Moreover, the move signals Alibaba’s commitment to integrate AI-driven robotics into its own ecosystem, from logistics to retail.

Why Alibaba Is Investing Now

Alibaba has already pledged $53 billion toward AI infrastructure. Because of this, the company is actively seeking ventures that align with its long-term vision. Furthermore, robotics offers Alibaba opportunities to enhance automation, improve operational efficiency, and expand into new markets. In this context, the investment in X Square arrives at a critical moment for both the company and the broader AI sector.

What Comes Next

With new capital, X Square aims to expand research, strengthen its open-source community, and broaden its product offerings. Meanwhile, Alibaba gains early access to breakthrough technologies that could transform its operations. Consequently, both sides stand to benefit from faster innovation cycles and stronger market positioning.

Final Outlook

As artificial intelligence reshapes industries worldwide, ultimately partnerships like this will determine global leadership. In conclusion, Alibaba’s stake in X Square Robot shows how technology, capital, and government policy are converging. Therefore, the $140 million investment is more than just funding — it is a signal of where the future of robotics is headed.

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