Embodied AI Startup X Square Reportedly Files Confidentially for HK IPO
Embodied intelligence startup X Square has reportedly filed a confidential listing application with the Hong Kong Stock Exchange (HKEX), according to market sources. The company, which specializes in developing general-purpose embodied AI foundation models, has not yet issued an official response. Earlier this year, in February, co-founder and chief operating officer Yang Qian indicated that the company was already preparing for an initial public offering, with plans to launch the process by 2026, although details such as the specific exchange and fundraising amount were not disclosed. In May, market rumors suggested that the company was considering a Hong Kong listing and aimed to raise approximately $500 million (about HK$3.9 billion), having already initiated preliminary discussions with several investment banks.
X Square was established in December 2023, with a focus on self-developing general-purpose embodied intelligence large models. The company leverages real-world data as its core training source, aspiring to create robots with fine-grained manipulation capabilities. It is among the early pioneers in China to adopt a 'fully end-to-end' technical path for such models, setting it apart in a rapidly evolving field. This approach allows for a more seamless integration of perception and action, which is critical for robots operating in dynamic environments.
In April, X Square released WALL-B, touted as the world's first embodied intelligence foundation model based on the World Unified Model architecture (WUM). This architecture aims to unify perception, cognition, and action in a single framework. In May, the company open-sourced its VLA model Wall-OSS-0.5, achieving a breakthrough in zero-shot deployment on real robots without task-specific fine-tuning. This advancement is significant as it demonstrates the model's ability to generalize across tasks, reducing the need for extensive custom training.
On the commercialization side, X Square partnered with 58 Daojia in March to introduce robot-based in-home cleaning services in Shenzhen, marking one of the first deployments of embodied intelligence in household settings. This move underscores the company's strategy to translate its research into practical applications.
The company has also been aggressive in capital raising. In April, it closed a Series B round led by Xiaomi's strategic investment arm. In June, it completed Series B+, B++, and C rounds in quick succession, wrapping up four rounds in just over two months. This impressive pace has pushed the post-investment valuation past RMB 20 billion (about $2.8 billion). The investor roster includes China Mobile, Sequoia Capital China, IDG Capital, Source Code Capital, Da Chen Capital, CICC, and more than 30 other top-tier institutions, reflecting strong confidence from both strategic and financial backers. The rapid succession of funding rounds highlights the high demand for embodied intelligence technology and the company's ability to scale its operations.
The embodied intelligence sector is experiencing a surge in interest, and 2026 is widely anticipated to be a pivotal year for IPOs. As the market matures, investors are keenly watching for companies that can demonstrate scalable technology and viable business models. X Square's potential listing is seen as a bellwether for the industry. With multiple players in the region, including humanoid robot startups and AI-driven automation companies, the competition is intensifying, and many are eyeing public markets to secure growth capital.
If X Square successfully lists on the HKEX, it would not only validate the commercial potential of embodied intelligence but also provide a blueprint for other startups in the space. Analysts believe this could trigger a wave of similar offerings, further accelerating the integration of AI and robotics. Moreover, it would give X Square access to a broader investor base, enabling it to fund future research and development, expand its product portfolio, and solidify its position as a leader in the field.