[DigitalToday reporter Jinju Hong] China robotics startup AI Squared Robotics is considering listing in Hong Kong. The company is in talks with advisers for an IPO, and next year is being mentioned as a possible timing.

Cryptopolitan, a blockchain media outlet, reported on Aug. 4 local time that AI Squared Robotics is a Shenzhen-based company founded in early 2023. Though it is in its third year, it has quickly risen as an IPO candidate after its valuation jumped to about $3 billion, or about 4.28 trillion won, following a recent fundraising. The company raised about 5 billion yuan, or $736 million, or about 1.05 trillion won, in June, and its valuation in the process topped 20 billion yuan, or about 4.23 trillion won.

The company has not officially confirmed an application for a Hong Kong listing. It completed a restructuring into a joint-stock company structure in April. Among Chinese companies, such restructurings are typically seen as a step before preparations for a listing.

AI Squared Robotics is developing a wheeled humanoid robot, Alphabot. Its core business model combines this with Alpha Brain, its in-house vision-language-action, or VLA, system. Chief executive Yandong Guo (옌둥 궈) has described Alpha Brain as the company's "core strength".

The IPO push also aligns with a trend of companies tapping capital markets on the back of rapid growth. Guo said in September last year that the target timing for a listing was within 1 to 2 years. He also said at the time, "We are seeing revenue grow nearly 10 times almost every year." Around the same time, he said AI Squared Robotics had already joined the ranks of unicorn companies.

The move is not unique to AI Squared Robotics. Chinese robot startups are increasingly considering listings in Hong Kong or on mainland China bourses as funding needs grow to expand production. As many as 50 Chinese robot startups are reported to be pursuing listings.

Companies such as Unitree Robotics and AGIBOT are at the forefront of the trend. Unitree Robotics is set for a listing in August, and its post-listing valuation is expected to exceed 50 billion yuan, or about 10 trillion won. AGIBOT is pushing for a Hong Kong listing within this year and is targeting a valuation of 40 billion to 50 billion Hong Kong dollars, or about 7 trillion to 9 trillion won.

Competition to raise capital in China's robotics industry is expected to intensify further. If AI Squared Robotics enters the Hong Kong listing process, it is likely to draw market attention as a leading example of a robot unicorn that has raised large funds despite its short operating history.