Venture capital firms have poured significant funding into humanoid robotics, with investments in the hundreds of millions becoming common, such as Robotera raising over $200 million and Apptronik securing $520 million. However, many experts question the rationale behind these high investment levels, noting that despite the "cool" factor, practical use cases, deployment challenges, and clear paths to returns remain largely unaddressed. Fady Saad, GP at Cybernetix Ventures, highlights a psychological attachment to humanoids that isn't practical, especially when considering the demanding 99.99% accuracy required in manufacturing, which general-purpose robots struggle to achieve.
Skepticism also extends to the inherent design of humanoids. Investors like Ajay Agarwal of Bain Capital Ventures argue that humanoids inherit the limitations of the human form, making them less efficient than specialized machines. For instance, legs require significant power and pose safety risks, whereas wheels or wings are often superior for movement. Critics also point out the lack of substantial customer contracts, with existing partnerships, such as those with Schaeffler and BMW, appearing more driven by a desire for innovation than a serious intent for large-scale integration. The actual industrial deployments remain narrow and supervised, with robots like Agility's Digit and Apptronik's Apollo used in specific, limited tasks.
The technological hurdles are significant. Across the industry, only a few hundred humanoids saw genuine industrial deployment in 2025, often requiring heavy human supervision. Battery life remains a major constraint, with most units running only about two hours on a charge, making an eight-hour shift years away. Safety concerns are also prominent, especially for home use, where the risk of injury to pets or children, or the potential for hacking, raises serious questions. While prices are falling, with Unitree's flagship G1 model costing $16,000, analysts note that much of the demand is still for research and demonstrations, not widespread commercial application. Unitree's revenue quadrupled last year, but its first-quarter adjusted profit fell over 52% due to increased R&D and marketing, and its $9 billion valuation is seen as speculative by some.
