Chinese AI-driven embodied intelligence startup Tars (它石智航) announced that it has raised $122 million in an angel+ funding round. The round was led by Meituan’s strategic investment arm, with participation from Peakvest, Hone Capital, CICV Investment, Lingang Science and Technology Investment, Saif Partners, and Jianfa Capital. Existing investors Linear Capital and Xianghe Capital also increased their investments in the company.

Tars, founded in February 2025, plans to use the new funds to expand its ecosystem and operational capabilities, although specific allocations were not disclosed.

The company is dedicated to developing a leading physical world AI and general robot full-stack technology system. At the core of its innovation is the “Human-Centric embodied data engine,” which aims to overcome bottlenecks in real-world data acquisition for embodied AI. Embodied AI refers to intelligent systems, often robots, that can perceive, learn from, and interact with the physical world.

Tars has rapidly attracted significant investor interest since its founding. In March, the startup secured a US$120 millionAngel round, setting a record for the largest Angel round in China’s embodied AI industry.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ Autonomous vehicle funding surges as investors target specialized technology

Itashi Zhihang’s $122 million angel-plus round reflects the broader trend of accelerating investment in autonomous driving technology.

The self-driving industry is projected to grow dramatically from $22.6 billion in 2024 to $222.8 billion by 2033, representing a compound annual growth rate of 28.92% 1.

This growth is evident in recent funding data, with mobility technologies attracting $54 billion in 2024, of which $18.2 billion went specifically to connected and self-driving solutions, double the previous year’s investment 2.

Corporate strategic investors have become particularly influential, participating in nearly half of all auto tech deals in recent years, as seen with Meituan leading Itashi Zhihang’s round 3.

The trend shows a maturing investment landscape with fewer early-stage deals and more substantial funding rounds for companies with proven technology, suggesting investors are becoming more selective and strategic.

2️⃣ Talent acquisition emerges as critical battleground in autonomous driving race

Itashi Zhihang’s plan to launch a global recruitment initiative highlights how securing specialized talent has become essential for competitive advantage in autonomous driving.

The complexity of autonomous vehicle development requires multidisciplinary expertise spanning AI, computer vision, robotics, and vehicle engineering, creating intense competition for skilled professionals.

Leading companies like Waymo, which recently raised $5.6 billion and achieved a valuation over $45 billion, demonstrate how companies that successfully attract top talent can achieve significant market traction, now completing over 250,000 paid rides weekly 1.