Unitree IPO surge highlights debate over humanoid robot valuations

In short: Investors are pouring money into humanoid robot companies, even though today’s robots are still expensive and limited in what they can do.

What's going on

Unitree Robotics, a Chinese robot maker, surged about 460 per cent on its market debut, according to the Financial Times. The company’s market value reached about $51bn, and it also raised roughly $900mn in Shanghai this week.

The excitement is tied to big expectations for humanoid robots, meaning robots shaped like people that can walk and use arms and hands. Supporters argue a humanoid could eventually do many different jobs, like moving items in a warehouse, stocking shelves, or helping with care work. Some research firms have estimated very large future markets, with hundreds of millions of humanoid robots possibly in use by 2050.

But the FT’s Lex column argues the current numbers do not match the reality of the technology. Unitree sold 28,000 robots last year, mostly cheaper robot dogs, and sold 5,215 humanoid robots. Unitree has said its humanoid robots are often used as research and development platforms, meaning they are more like lab test equipment than ready-to-hire workers.

The column also points to practical limits. Humanoid robots are still too expensive for many factories to justify, and they often only run for a couple of hours on a charge. In simple terms, they are closer to a prototype car than a dependable delivery van.

What to watch

A key signal will be whether companies can lower costs and improve battery life while proving robots can do useful work day after day. Investors may also watch Tesla’s plans for its Optimus robot, since comparisons with Tesla help shape how these robot firms are priced.

Source: Financial Times