Figure AI, a robotics startup focused on humanoid robots, is in discussions to secure US$1.5 billion in funding at a US$39.5 billion valuation, according to sources familiar with the matter.

The round is reportedly led by Align Ventures and Parkway Venture Capital, though terms are not finalized.

This marks a sharp rise from its US$2.6 billion valuation last year.

Previous investors include Microsoft, OpenAI, Nvidia, and Jeff Bezos.

The company is benefiting from advancements in reasoning technology, accelerating robot adoption.

Figure AI estimates its humanoid robots could be ready for home use within a few years. It aims to address labor shortages by performing dangerous tasks, with BMW AG among its current customers.

Interest in robotics is growing, with Tesla’s Optimus and Meta’s reported collaborations with Figure and Unitree Robotics.