Physical Intelligence is back at the fundraising table with an audacious ask. The AI robotics startup is in talks to raise $1 billion at a valuation approaching $11 billion, effectively doubling its $5.6 billion price tag from just four months ago, according to reports. The meteoric valuation jump signals explosive investor appetite for foundation models that can control physical robots, not just generate text and images.

Physical Intelligence is making another massive bet that investors will pay top dollar for the future of embodied AI. The San Francisco-based startup, which builds foundation models designed to give robots general-purpose physical intelligence, is reportedly in advanced talks to raise $1 billion in fresh capital at a valuation hovering near $11 billion, according to sources familiar with the matter reported by TechCrunch.

The timing is striking. Just four months ago, Physical Intelligence closed a funding round that valued the company at $5.6 billion. Now it’s on track to nearly double that figure, an acceleration that puts it in rare company even among the frothy AI startup ecosystem. The valuation leap underscores how quickly the market has embraced the promise of foundation models that don’t just process language or generate images, but actually control robotic hardware to perform real-world tasks.

The company’s approach centers on building what it calls “general-purpose” AI models for robots, similar to how large language models work across different text-based applications. Instead of training separate AI systems for each specific robotic task, Physical Intelligence is developing models that can theoretically transfer knowledge across different physical manipulation challenges, from folding laundry to assembling electronics. It’s the kind of ambitious technical vision that has captivated top-tier venture firms.

Founders Fund, Thrive Capital, and Lux Capital have all backed Physical Intelligence in previous rounds, joining a roster of investors betting that robotics AI represents the next major frontier after conversational AI. The startup emerged from stealth mode with significant fanfare, founded by veterans from leading AI research labs who’d worked on robotics, computer vision, and machine learning projects at institutions like Google DeepMind and UC Berkeley.