Venture investors are warning that surging interest in humanoid robotics, fueled by artificial intelligence enthusiasm, risks creating a speculative bubble as startups confront unresolved challenges in cost, reliability and performance.
A CB Insights report released this week underscores the concerns, noting that many humanoid robotics companies backed by significant capital continue to face hurdles in key areas such as real-time inference, dexterity, reliability and production costs. These limitations, the report states, restrict near-term applications primarily to structured environments like factories and warehouses with repetitive tasks.
The sector saw heightened activity last quarter, securing 17 funding deals—the highest among AI subcategories. This outpaced investments in coding AI agents (14 deals) and end-to-end software development AI tools (12 deals), according to CB Insights data. The shift reflects broader AI dominance in venture capital, with KPMG and PitchBook reports indicating AI accounted for more than half of all investments in 2025.
Investors point to AI’s role in elevating humanoids’ commercial prospects, enabling capabilities previously unattainable, such as dynamic movement and object manipulation. Prototypes demonstrating actions like running and boxing have attracted commitments from major players including Nvidia Corp. and SoftBank Group Corp. However, the report highlights a lack of proven revenue models amid the prototype focus.
China’s National Development and Reform Commission recently voiced similar apprehensions, advising the industry to “balance speed against the risks of bubbles,” as Bloomberg reported. Daiva Rakauskaitė, partner at Aneli Capital—which manages a €35 million fund for early-stage startups in Central and Eastern Europe—drew parallels to the dot-com era.
“Many AI startups that can’t yet generate revenue will fail, but we’re reaching a consensus on that in the market,” Rakauskaitė said. “While the same risks persist in humanoid robotics, many investors tend to overlook this.” She differentiated humanoid robotics from established industrial and logistics robots, which already produce measurable returns.
CB Insights echoed these points, emphasizing that inference, dexterity, reliability and cost challenges persist despite investor optimism. Rakauskaitė advocated a “revenue-first” approach for venture capitalists. “Investors should remain disciplined and back companies that have realistic goals based on economics, not hype,” she said. “From day one, startups should aim for early revenue streams through licensing, partnerships and have a clear model of monetization in the near future.”
Aneli Capital views the broader robotics field positively, citing declining hardware costs and AI progress as accelerators for deployment. The Central and Eastern European region offers strategic advantages, Rakauskaitė noted, including proximity to Germany—Europe’s largest industrial robotics market—and access to specialized talent. “The region also has lots of hidden talent. That’s why we dedicated our new fund for this region,” she said, committing to hands-on support through market cycles.
The warnings come as humanoid robotics garners global attention, with companies worldwide showcasing advanced demonstrations. Yet without commercial traction, analysts anticipate a potential correction. Rakauskaitė expressed confidence in robotics’ long-term importance. “Investments in robotics and AI are crucial for the future development of humanity,” she concluded.
