Why Everyone is Investing in Humanoid Robots

Insert Dark Mirror Episode Number

Are We Really That Close to Living With Robots?

A few years ago, AI was something you would only see in movies, or some chatbot on a website at most, but now things are slowly changing. We live in a type of world where AI is playing a major role in shaping our society, but now it’s not just limited to the virtual world.

Humanoid robots have entered the market, and they’ve been there for some time, but now they’re the center of attention of everyone, and they are getting better with each passing day. There are so many people who are investing in it, and they expect so much from it.

Many of you might not be aware of what they are.

You can think of them as machines that are designed to look and act like us. They can walk, gesture, talk, and in some cases, even understand basic emotions or social cues. They are the bridge that connects artificial intelligence and physical embodiment.

In 2025, over $65 billion has been poured into humanoid robotics. Investors are lining up, CEOs are making promises, and product demos are flooding your timeline. The question isn’t if robots are coming - it’s when they’ll actually matter to you.

So are humanoid robots about to become your next coworker, caregiver, or housemate? Or is this just another overhyped tech illusion that’s not ready for the real world?

This article cuts through the noise and breaks down:

• What humanoid robots really are

• Who’s investing billions - and why

• How they differ from traditional robots

• The hype vs. the actual ground reality

Let’s dig in.

The Rise of Humanoid Robots

Humanoid Robots didn’t just fall out of the sky one day, and now we are here; there is a whole lore behind how things are the way they are when it comes to these robots.

So before we get into the nerdy details, let’s first understand what this term means and what humanoid robots are ,are they from the Terminator movie? If not, then what are they?

What Are Humanoid Robots?

At its core, a humanoid robot is exactly what it sounds like: a robot designed to look and move like a human. Two arms, two legs, sometimes even a face. They are brought to reality because there is a goal behind it, what goal? To have these machines not only perform tasks, but also exist in the same world we do.

And since they will live in the same world as ours, their manufacturers want them to do everything that we humans can do as well, things like opening doors, shaking hands, walking around the office, and maybe one day…making small talk while doing it.

From Early Prototypes to Modern Marvels

Now, this whole humanoid thing isn’t brand new. If you rewind back to the early 2000s, you’ll find Honda’s ASIMO. It was one of the first robots that could walk, run, and climb stairs without breaking its own leg, and at the time, it felt revolutionary. But if you compare it with today’s humanoid robots, it feels like version 1.0 of something way bigger.

Fast forward to now

Robots like Tesla’s Optimus (no, I didn’t say Optimus Prime), Figure 01, and Agility Robotics' Digit aren’t just trying to move like us, they’re trying to think like us, too. Isn’t it fascinating that humanoid robots are coming to life? Because some years ago, people weren’t even aware of them, and to them, they were nothing more than some movie toy.

Now, I bet you must have seen tons of robots that are being used in industries and are performing a lot of tasks. You might be wondering that:

Aren’t Industrial robots and Humanoid robots the same…?

Industrial Robots vs. Humanoid Robots

The short answer to our previous question? No - they are very different

The following table will clear any misconceptions inside your brain when it comes to these different types of robots, and since tables help me a lot when differentiating things, that’s why I presented all the information in a table.

Industrial bots are like pretty focused workers designed to perform specific tasks. On the other hand, when it comes to Humanoid robots. They're still learning, aren't ready yet…but soon (maybe) will be, and when they are ready? They will blend into your daily life.

Who is Bringing Humanoid Robots to Life

In short, Artificial intelligence (AI) is the one pulling the strings behind the scenes.

Yeah, you heard it right, AI isn’t just limited to your browser, and it can do much more than telling people “how to make coffee.” It’s playing an important role in modern society by bringing these lifeless metal frames to life. It gives these robots the ability to make decisions, recognize objects, avoid obstacles, and even read basic facial expressions.

So yeah, we’re no longer just building machines that just work. We are on the path to building machines that will work with us side-by-side.

Who’s Investing in Humanoid Robots?

You must have seen that different companies are literally competing to produce the best humanoid robots, but none of that is happening without the money, right

Investment in humanoid robots is booming, with over $4.2 billion raised by robotics startups in 2024 alone and over 65$ billion in 2025. So, the real question is:

“Who in the world is actually taking all the risk to invest in these robots?”

Let’s actually get into the details of that.

Tech Giants: The Usual Suspects

So, if you thought some secret billionaire was behind in putting all his money so robots can be the future, then, sorry to disappoint you, that’s not what is going on.
In fact, different tech giants such as Tesla, Meta, Google, Apple, Intel, NVIDIA, Samsung, Amazon, and Microsoft are some of the major investors behind all this humanoid robots stuff.

Quite literally, all of these companies are busy making their own humanoid robots. Take Tesla for example: Musk is throwing huge amounts of money on “Optimus,” a humanoid robot designed to handle repetitive tasks in Tesla's factories. Elon believes that humanoid robots will play a key role in our future.

Similarly, other companies such as Amazon are working on “Digit,” while Alphabet (Google's parent company) is also busy investing in Robotics R&D, aiming to integrate AI into physical machines that interact with the real world.

You see…tech giants have always chased the next big thing. First, it used to be search engines. Then smartphones. Then the cloud. Then AI. Now it’s humanoid robots. The torch just keeps passing.

And the interesting thing is that humanoid robots didn’t take off in the past because we didn’t have the brainpower for them, but that’s changed now. LLMs (like GPT, Claude, Gemini) are now here and they are giving the brains to these lifeless metal boxes, which wasn’t possible in the future. We will talk more about the future and all this later. For now, let’s just stick to the topic.

Deep-Pocketed Startups

Tech giants aren’t the only ones running in the humanoid race, we also have different startups that are behind the actual manufacturing of these cool humanoid robots.

Take Figure AI, for example, they just pulled in a casual $675 million from a list of investors that includes Jeff Bezos, Microsoft, Nvidia, Intel, and even OpenAI. Why? Because their robot, Figure 01, isn’t built to do one thing. It’s built to do everything. They are planning to make it so capable that it can work everywhere, whether it’s a warehouse, a hospital, or a junkyard.

Similarly, we also have Agility Robotics. This startup is playing it smart by making a humanoid robot called Digit, which is a bipedal robot designed to handle logistics work. And they aren’t alone in this; they have chosen Amazon and GXO as their partner, meaning this bot is getting armed up for shifts in actual warehouses.

Lastly, we got Sanctuary AI and Unitree. These guys are taking a different route by planning to make service robots. The special thing about their robots is that they plan to make robots that will be available to the average person, so they can actually be useful and available.

Governments & Institutions

Of course, governments are playing their cards as well.

We have China, which is trying to make its own machines independently. They plan to build a whole robotic empire that doesn’t need Silicon Valley’s crumbs. So, yeah, they are not just investing, they’re declaring independence.

Similarly, Japan, on the other hand, is facing some serious crises, such as an aging population and a shrinking workforce. All this is a real problem, and the fix? Robots. Not as toys, but as real replacements, think about it: caregivers, assistants, companions. That’s the plan.

And of course, how can we forget about the West? The U.S. and the EU are quietly pouring billions into making the best humanoid robots, about which we discussed earlier. The interesting thing is that: To them, Automation isn’t some trend, it’s more like survival.

And here’s the part nobody likes to say out loud:

Maybe this isn’t about helping humanity, maybe it’s about controlling it. Come to think of it, Humanoid robots aren’t just tools, they’re pawns in a power game. And whoever controls them...doesn’t just possess the power to automate labor, they will also possess the power to automate influence as well.

Why Are Humanoid Robots Getting So Much Investment?

So, you have seen that a serious amount of money is being put into these robots, and if you have read so far, then you also know who the people are behind all these investments. But one major question still remains unanswered:

“Why are these robots even getting so much investment and attention?”

In this section, we will be lifting the curtains on this topic, so you can finally find out the truth about this question. Anyway, let's get right into it.

Labor Shortages

Some of the more developed countries are aging, and birth rates are going down there. You’ve got unfilled jobs everywhere, especially in manufacturing, healthcare, and the elderly care industry. It’s not because there isn’t enough manpower to do it, but also because no one wants to lift boxes for 10 hours or clean up after old people for minimum wage.

But Humanoid robots?

They don’t mind. They can’t mind.
They’re built to fill the gaps, literally and economically.

Cost Savings

Robots don’t need salaries, benefits, lunch breaks, or time off to deal with family drama; they just keep working. You can just charge them up, update the firmware, and boom! They’re back flipping burgers or carrying grandpa to the bathroom.

And companies would love this, think about that they wouldn’t have to deal with employees who want:

• Sick leaves

• Smoke breaks

• Salary raises

AI Maturity

If we take a moment and look back in the past, we would realize that robots were dumb. They couldn’t even walk straight, let alone carry a tray or recognize your face. But now? Things have changed very much. We have got LLMs like GPT, computer vision that can detect objects in real time, and motion control that is better than ever.

So the logic is
If we’ve made machines that can talk, see, and think, why the hell are we still keeping them inside data centers? Wouldn’t it truly be a waste of resources not to put these advanced systems to work?

TL;DR: Why all this money?

At this point, surely you have realized why these robots are getting so much investment, but just to sum it up, here are the main reasons why it is happening:

• Cheaper than humans in the long run

• More obedient

• Don’t need bathroom breaks

• And they don’t talk back. Unless you program them to.

These are just some of the reasons that I listed off the top of my head; other than that, they literally don’t get tired and don’t need weekends.

But here’s the thing

Everything we’ve talked about so far?
It’s mostly expectations, hopes, and investor fantasies. We are currently assuming that robots will be perfect workers. We are assuming that AI will just slide right into the real world like it’s no big deal.

But reality doesn’t always play nice with expectations.

So before we get too delusional with the idea of robot butlers and tireless factory workers…

Let’s talk about where things are actually headed and about the ground reality.

The Future of Humanoid Robots: Ground Reality

It’s time to take off the brain-controlling hype helmet and look at what’s actually happening in reality.

I must admit: Yes, companies are pouring billions, tech bros are making wild promises, and headlines are screaming "The robot revolution is here!"

But if we are being real, then we would know that just like every “next big thing” that came before it, humanoid robots are going to run into the same two brick walls:

• Reliability

• Affordability

And that's the part no one likes to talk about.

I get it, the idea of having a robot buddy to make your coffee or fold your laundry sounds amazing, but the reality is quite different. Most of these robots, even the most expensive ones, can barely do one thing right. And even when they do, they’re often just...okay at it.

The thing is that the problem isn’t even just AI, it’s mechanical and economic. And if we are being honest, then it's pretty clear that we still haven’t cracked things like stable locomotion, real-time depth perception, or even battery efficiency for these bots to function properly in a house, or literally anywhere that isn’t a demo room.

Yet every year, some CEO steps up on stage and says, “Next year, humanoid robots will be in everyone’s homes!” That’s like saying: “Next year we’ll have processors with 100,000 cores and 50 trillion threads.”

It’s a pretty cool dream, but completely unrealistic for where we stand right now.

Back when Apple said they were on the verge of launching a product that would change everything, they had the hardware, software, and ecosystem to back it. And they delivered.

But in the case of humanoid robots?

There’s no concrete proof yet that we’re anywhere close to creating a robot that can do everything everyone expects it to do.

Even if some of these bots can do “some work,” there’s still a mountain of stuff they can’t do well enough to justify the cost. If anything, maybe they should stop trying to build Iron Man’s suit and just get the robot to vacuum the floor properly without crashing into someone’s grandpa.

Phew! I think I have yapped enough for today, but yeah…what do you think about this whole humanoid robots thing, are they coming home any time soon? Or do you agree with me about it being too much of a hype? Drop down a comment and let me know what’s cooking in your brain.

Other than that, if you found any valuable information in this piece, or it helped you in some way, even if it is minor, then do be sure to drop a comment and leave some feedback, because trust me, feedback? It helps me level up.

Further Learning

• Amazon develops a robot that ‘feels’ touch, just like its human workers | The Verge

• Top 27 Humanoid Robots in Use Right Now | Built In

• Meta plans investments into AI-driven humanoid robots, memo shows | Reuters

• AMECA, Atlas, Optimus: Top 10 insane humanoid robots to watch out for in 2025

• Every Humanoid Robot We Met at Nvidia GTC (and Some We Didn’t)

• China's New Generation Humanoid Robots SHOCKED the World at CES 2025

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