Physical Intelligence in talks to raise at least $1 billion at about $20 billion, with no revenue yet

Physical Intelligence is in talks to raise at least $1 billion at a valuation of about $20 billion, Bloomberg reported on Oct. 27, citing people familiar with the matter. Existing backers Avenir and Lux Capital are in talks to lead the round, according to the report as carried by The Next Web and Investing.com. The company raised money at an $11.5 billion valuation earlier this year.

The price is for a product that has yet to earn anything: Bloomberg's sources say Physical Intelligence has no revenue. What has changed since the last round is that its models are now for sale. On Oct. 13 it opened an API beta that lets developers upload data, fine-tune its models and run them on their own robots, and the beta has lifted investor interest in the round, Bloomberg's sources said. The bet is that robot makers will rent a robot foundation model instead of training their own.

The company was founded in 2024 by former Google DeepMind researchers and academics from Stanford and UC Berkeley. CapitalG, Jeff Bezos and Thrive Capital are among its backers.

The nearest comparison already has revenue. Skild AI, another robot foundation-model company, was valued at $14 billion in January and said in September that its annual run-rate revenue had passed $100 million. At about $20 billion, Physical Intelligence would be priced roughly $6 billion above that mark on the strength of a two-week-old beta.