Apptronik, a University of Texas spin-out, has announced a massive $350 million Series A round of financing, co-led by B Capital and Capital Factory, with participation from Google's DeepMind division. This significant investment will enable the Austin-based startup to scale its humanoid robot technology, with plans to demonstrate useful work in various applications and achieve true commercialization by 2026.

Apptronik's CEO, Jeff Cardenas, emphasized the importance of this funding round, stating that the goal is to demonstrate the capabilities of their humanoid robots in pilot projects with early adopters and customers. The company has already achieved revenue growth through pilot deals with prominent companies like Mercedes and GXO Logistics, as well as by selling robots outright. However, Cardenas acknowledged that generating more revenue than fundraising will have to take a backseat for now.

Apptronik's humanoid robot technology dates back to 2013, when members of the University of Texas's Human Centered Robotics Lab competed in the NASA-DARPA Robotics Challenge. Since then, the company has maintained a partnership with NASA, developing its own generation of humanoids, including its current robot, Apollo. This decade-plus of experience in humanoid robotics sets Apptronik apart from competitors like Figure, 1X, and Tesla.

The partnership with Google's DeepMind AI team is a strategic one, aimed at building robot behavioral models. This collaboration is similar to others in the industry, such as Boston Dynamics' tie-up with The Robotics & AI institute and Toyota Research Institute. The trend towards partnerships and investments in the robotics and AI space is clear, with OpenAI also making moves in the industry.

Apptronik's current headcount of 170 people is set to increase by 50% over the next year, with the company focusing on scaling and production. While Cardenas is pragmatic about timelines, he acknowledges that the industry is prone to overpromising and underdelivering. As such, Apptronik is taking a measured approach, addressing safety concerns and reliability before scaling its technology.

The company has ongoing pilots with several partners, including Mercedes, which is a natural fit given the automotive manufacturing industry's need for humanoid robots. Other companies, like Boston Dynamics, Figure, and Tesla, are also exploring the use of humanoids in factory settings. However, Apptronik is also looking beyond industrial applications, with CEO Cardenas expressing excitement about the potential for humanoids to assist with age-related care and improve the human condition.

While the "holy grail" of age-tech may have to wait, Apptronik is focused on the industrial sector for now. The company's target price for its Apollo robot is below $50,000, but Cardenas acknowledges that they are not yet at that price point. Nevertheless, he is confident that the economics now make sense, and the company knows how to achieve more affordable systems in the future.

In conclusion, Apptronik's $350 million Series A funding round marks a significant milestone in the development of humanoid robots. With its partnership with Google's DeepMind and focus on scaling and production, the company is poised to make a meaningful impact in the industry. As the robotics and AI space continues to evolve, it will be interesting to see how Apptronik's technology develops and is adopted in various applications.