UBTECH secures US$1B deal with Infini Capital

UBTECH's Walker S2 robots in a factory simulation. Courtesy of UBTECH

Shenzhen-based humanoid robotics company UBTECH announced on August 31 that it has signed a strategic cooperation agreement with international investment firm Infini Capital for a US$1 billion financing facility and broader industrial collaboration.

The agreement centers on a strategic financing credit line of up to US$1 billion provided by Infini Capital's high-tech investment fund. The capital can be accessed through various instruments, including participation in share placements, subscription to convertible bonds, and a key cash-drawdown right. 

This provision grants UBTECH rapid access to the US$1 billion sum, which the company stated will significantly enhance its capacity for major strategic industrial initiatives.

Beyond financial backing, the partnership entails several strategic industrial moves. Infini Capital plans to increase its stake in UBTECH at an opportune time, aiming to become a significant shareholder with up to a 5% ownership stake. The two entities will also co-invest in the humanoid robot supply chain to help UBTECH build a comprehensive ecosystem.

Leveraging its existing portfolio of artificial intelligence (AI) and robotics companies, Infini Capital will assist UBTECH in developing more advanced and cost-effective humanoid robots. A central pillar of the collaboration is a push into the Middle East market, including plans to establish a joint venture, a potential “super factory,” a research and development center, and a regional headquarters in the region.

Infini Capital, a firm dual-headquartered in Abu Dhabi and Hong Kong, manages several primary and secondary funds focused on strategic emerging technologies, AI, humanoid robotics, and smart manufacturing. The firm has been an active investor in Hong Kong-listed high-tech companies, providing over HK$10 billion (US$1.28 billion) in funding through placements and cornerstone investments in firms such as SenseTime, 4Paradigm, Ruyi Holdings, BYD, Lens Technology, and CaoCao Mobility.

This investment is seen as a signal of long-term confidence from international “patient capital” in China's humanoid robotics industry. It follows a recent share placement by UBTECH that involved the world's largest sovereign wealth fund.

UBTECH, often referred to as the "first stock of humanoid robotics," has been advancing the commercial application of its robots. Its industrial Walker S model is recognized as the humanoid robot with the most extensive training in real-world factory settings. 

In a significant commercial milestone, the company secured a 90.51 million yuan equipment order this July, which it claims is the largest publicly disclosed procurement contract for a humanoid robot company to date.