Chinese robotics startup Dexmal is seeking a valuation of around 20 billion yuan ($3 billion) in an ongoing funding round, highlighting strong investor appetite for the country's firms pursuing breakthroughs in physical artificial intelligence. The discussions are ongoing, Dexmal founder Tang Wenbin told Bloomberg News in an interview at the World Robot Conference in Beijing on August 19.

The fundraising follows previous rounds led by Chinese e-commerce giant-turned-AI player Alibaba Group Holding Ltd. and NIO Capital late last year, the company said. Tang noted that Chinese AI lab Z.AI Co., also known as Zhipu, also participated in an earlier round.

The talks underscore growing momentum in China's physical AI sector, where startups are racing to develop humanoid and industrial robots. Dexmal's target valuation reflects confidence in the commercial potential of embodied intelligence.

Investor interest remains robust despite broader market volatility, as strategic backers like Alibaba and NIO Capital double down on robotics as a core pillar of the AI race.