China’s artificial intelligence startup PsiBot is set to become the latest AI unicorn. It raised AED 367.28 million in fresh funding. The Shanghai-based company is building AI systems that can help robots and autonomous machines understand and respond to the physical world.
PsiBot, also known as Lingchu Intelligence, is in the final funding round led by Chinese automaker Chery Automobile. According to reports, sensor manufacturer Lens Technology is also one of the investors. The new funding would take the startup’s valuation to roughly $1.48 billion.
The company raised about $300 million since its establishment in 2024. The latest fundraising highlights the growing investor interest in embodied AI. The company aims to move artificial intelligence beyond screens and into the physical world.
PsiBot creates embodied AI and world models that enable machines to sense their environment and perform various actions within the real-world context. The technology could be used for development of applications in robotics, self-driving cars, and automation industries.
The startup trains its models using real-world data collected through specialised hardware, including robotic systems and gloves. This data helps AI systems learn how humans interact with objects and how machines can perform complex physical tasks.
With fresh capital and strategic backing from industrial players, PsiBot will likely focus on expanding its models, collecting more high-quality real-world data, and deploying its technology across robotics and manufacturing.
The company’s rise shows how China’s AI investment cycle is broadening. The next wave of AI startups may not only build smarter chatbots but also develop the intelligence that powers machines in the physical world. Chinese startups are attracting significant capital as the country seeks to strengthen its capabilities in robotics, autonomous systems and advanced AI infrastructure.
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