Unitree Eyes $7 Billion IPO Amid Humanoid Robot Boom

Unitree Robotics, a rising star in China’s technology sector, is reportedly preparing for an initial public offering (IPO) that could value the company at approximately 50 billion yuan ($7 billion). This move aims to solidify its position as a global frontrunner in the burgeoning field of humanoid robotics.

Humanoid robots, powered by artificial intelligence, are designed to mimic human appearance and movement. Their potential applications span a wide range of industries, from manufacturing and logistics to customer service and healthcare.

Based in Zhejiang, Unitree has emerged as a key player in China’s rapidly developing humanoid robot market. Its planned IPO could mark a significant milestone, potentially making it one of the first publicly traded companies specializing in this advanced technology. This reflects both investor appetite and confidence in the sector’s long-term growth prospects.

The proposed valuation represents a substantial increase from its previous funding round in June, which attracted significant investments from major Chinese technology players including Geely, Alibaba, and Tencent. This demonstrates the strong market confidence and the company’s rapid growth trajectory.

Unitree acknowledged its IPO plans in an August 27 post on X, stating that it was actively engaged in listing preparations and anticipated submitting application documents in the fourth quarter of the year. However, details regarding the amount Unitree aims to raise through the IPO are yet to be disclosed.

The company recently told local Chinese media that it has been profitable since 2020, boasting revenues exceeding 1 billion Chinese yuan ($140.35 million). This financial performance highlights Unitree’s ability to successfully commercialize its technology and attract a growing customer base.

An IPO of this magnitude would rank among the most significant Chinese tech listings in recent memory, signaling a resurgence in the mainland stock market after a period of increased regulatory scrutiny and market volatility. This is seen as a positive sign for the overall investment climate in China and its commitment to fostering innovation.

Furthermore, Unitree’s IPO aligns with Beijing’s broader strategy of supporting domestic champions in AI-related industries. The company’s founder, Wang Xingxing, reportedly participated in a rare meeting with Chinese President Xi Jinping earlier this year, underscoring the government’s commitment to technological advancement.

In 2023, China’s Ministry of Industry and Information Technology issued guidelines for humanoid robots, explicitly calling for “production at scale” by 2025. This policy directive further reinforces the government’s ambition to establish China as a global leader in the robotics sector.

Unitree is part of a growing ecosystem of Chinese humanoid robot companies, including Agibot (also known as Zhiyuan Robotics) and Galbot, a Beijing-based startup backed by Hong Kong government funding. These companies are aggressively seeking to deploy their robots in factories and other industrial settings throughout China. Notably, electric vehicle manufacturers like BYD and Geely have already begun integrating Unitree’s humanoid robots into their production lines, seeking improved efficiency and automation.

The prominence of Chinese humanoid robots was recently showcased at events such as the World Robot Conference and World Humanoid Robot Games, highlighting the nation’s advancements in this field.

According to Lian Jye Su, chief analyst at Omdia, an independent analyst and consultancy firm, an IPO could be instrumental in helping Unitree solidify its position as the leading humanoid robot firm in China. “Unitree is already a leading vendor in mobile robots globally, and it is well-positioned to become a top player in the humanoid robotics sector,” Su noted.

Omdia estimates that approximately 15,000 humanoid robot units are expected to be shipped this year, with Unitree holding the second-largest market share behind its domestic competitor, Agibot. This indicates a competitive landscape characterized by innovation and rapid growth.

The competition is intensifying on a global scale as well. The U.S. is also home to emerging humanoid robot players such as Boston Dynamics and Figure AI. However, Tesla’s Optimus project appears to be leading the way in terms of commercial readiness, with CEO Elon Musk previously announcing plans to produce approximately 5,000 units this year. This suggests a global race to dominate the humanoid robot market.

Analysts have observed that China currently holds an advantage in the commercialization of humanoid robots, particularly regarding product availability and pricing. Unitree’s G1 model, with a starting price of $16,000, is considered by Morgan Stanley as the most widely deployed humanoid robot globally. Tesla’s Optimus Gen2 is anticipated to cost at least $20,000, potentially giving Unitree a cost advantage. Unitree’s recent unveiling of the R1 humanoid, priced at $5,900, further emphasizes this trend. Morgan Stanley suggests that while these more affordable models might not be the most advanced, they will be crucial for gathering data for future model development.

Although China appears to have an early advantage in the commercialization of humanoid robots, experts acknowledge that the U.S. possesses significant strengths in the broader AI and robotics ecosystem. The U.S. benefits from leading chipset manufacturers like Nvidia and Intel, hyperscale cloud providers such as Google and Meta, and innovative robotics software vendors such as Physical Intelligence and Skild AI. This robust ecosystem provides a strong foundation for developing advanced humanoid robot technologies.

For instance, Chinese humanoid robot manufacturers, including Unitree Robotics, are early adopters of Nvidia’s humanoid robot technologies, including the Jetson AGX Thor platform, enabling real-time and intelligent interactionswith people. These collaborations highlight the interconnectedness of global supply chains and the importance of accessing cutting-edge technologies.

Recent analysis from Merrill Lynch forecasts that global humanoid robot shipments will increase from 2,500 units in the previous year to 18,000 units in 2025. The report also projects a global robot population of 3 billion by 2060, implying a significant long-term growth trend for this technology. This demonstrates the vast potential market opportunity and underscores the importance of innovation and strategic positioning in the competitive landscape.