Physical Intelligence in talks to raise $1B at about $20B valuation, Bloomberg reports

Physical Intelligence, the San Francisco company that builds the pi family of robot foundation models, is in talks to raise about USD 1 billion at a valuation of about USD 20 billion, Bloomberg reported on Oct 27. Existing investors Avenir and Lux Capital are in talks to lead, according to the report. The company has not confirmed the round, and terms in talks can change.

The jump is larger than the headline suggests

MEKAWIRE's funding database holds two verified rounds for Physical Intelligence: USD 400 million at USD 2.4 billion in November 2024, and a USD 600 million Series B at USD 5.6 billion in November 2025. Against the last verified figure, USD 20 billion is a 3.6x step-up in under a year. Coverage of the Bloomberg report also cites an unannounced Series C in May 2026 at about USD 11 billion; the company never published that round, so it is not in our database, and the step-up from it would be about 1.8x.

Why it matters

At about USD 20 billion, Physical Intelligence would become the second most valuable robotics company in our database, behind Figure AI at USD 39 billion and ahead of Skild AI at USD 14 billion. It sells no robots: its business is the model layer that other companies' hardware runs, the same bet our VLA explainer describes. A price at this level would put a robot model maker within reach of humanoid hardware makers, before any of them has shown large commercial revenue.

What to watch: a company or lead-investor announcement with the final amount and post-money, and any Form D filing, which would show the amount actually sold. Until then MEKAWIRE records the round as reported, not verified.