According to a comprehensive report by Quantum位 (QbitAI) published on June 21, China's embodied AI sector raised approximately 43.8 billion RMB in the first half of 2026, on track to set a new annual record. In comparison, the full year of 2025 saw about 55.4 billion RMB, while 2024 recorded only 13.7 billion RMB.
The most striking trend is the dominance of 'brain-first' companies: over half of all funding flowed into companies that emphasize 'software defines hardware, model defines embodiment.' By contrast, 'hardware-first' companies focused on robot bodies received only 12.8%, even less than core component manufacturers (14.4%).
World models have become the most favored technology thesis. Among the 35 'brain-first' companies tracked, 27 (nearly 80%) are developing world models. Investment follows a distinctive pattern: Pre-A rounds average 700 million RMB, while B rounds average 2.25 billion RMB — amounts that would be considered C/D round levels in most other sectors.
Tsinghua University stands out as the dominant talent pipeline, with 9 founders/co-founders/chief scientists from the university across the tracked companies, primarily from Yao Class, the Institute for Brain-Inspired Computing, and the Computer Science Department. Peking University follows with 5 founders.
Notable deals include: Yishi Zhihang's 4.55 billion USD Pre-A round (33 billion RMB) — a record for any Chinese embodied AI single round; Qianxun Intelligence raised nearly 5 billion RMB across four rounds between February and June, reaching a 20 billion RMB valuation; and several companies like Deta Intelligence, Zhangyu Power, and Moushen Intelligence completed 3-5 funding rounds each within 3-6 months of founding.
However, the report also highlights risks: over 90% of embodied AI companies may eventually disappear. As one investor noted, 'The industry goes through stages — first questioning the bubble, then understanding it, embracing it, and finally enjoying it.' The combination of 'sector scarcity × technology uncertainty × institutional competition' is fueling unprecedented boom in the embodied brain sector.
