Figure AI: The AI startup building the next generation of humanoid robots

This startup just raised $675M at a $2.6B valuation to build robots

Last month one of their robots successfully completed real-world warehousing tasks

They just signed a collaboration agreement with OpenAI to develop next-gen AI models

So What’s The Business?

Figure AI is an AI robotics company that creates general purpose robots. These robots remove the need for unsafe and undesirable jobs - helping us humans live happier and better lives. 

Figure AI is solving the problem of physical labor, a market worth 50% of the world’s GDP ($42T). As these robots “join the workforce”, everywhere from factories to farmland, the cost of labor will go down until it becomes the same price as renting a robot. 

According to the founder Brett Adcock, Figure “has the potential to positively impact humanity and to build the largest company on the planet”.

Brett is extremely impressive, having founded Vettery, an online talent marketplace that sold for $110M in 2019. He’s also the founder of Archer (NYSE: ACHR), an aerospace company building electric aircrafts that went public at a $1.5B valuation.

Business Model:

For humanoid robots, the business model would be like the car market. 

• Capex model: Buy the asset (robot) which would have a certain number of depreciable lives. You’d also then also pay for different services and maintenance

• Operating model: A leasing model, where a monthly fee is charged for putting robots into manufacturing or warehousing related applications

Figure is pushing the Operating model, AKA “Robots of service” - it’d be the best way to make it affordable to the masses. This is the best way for Figure to accomplish its end goal: creating a better life for future generations.

That’s great and all but wouldn’t a lot of people lose their jobs?

According to the founder Brett, that’s not the case here’s why:

The number of people in the workforce today is roughly 3.3B people, and that number is only shrinking... The majority of baby boomers are retiring soon and birth rates are at all time lows. Birth rates in the US are about 1.6 births per household, well under the human replacement rate of 2.1 births.

The number one problem of big companies today is retaining employees. In the average large business, 15% of employees don’t show up for work daily and working conditions are harsh.

Humanoid robots solve this issue for big companies. This is why founders like Brett and Elon Musk are working on this opportunity.

Elon Musk is predicting a humanoid robotics boom and is working on building humanoid robots at Tesla. He expects the ratio of humanoids to humans to “be greater than one-to-one”, and that one day Tesla’s robot business could be bigger than its cars.