US Robotics Investment Surges, Tripling Market Share to 5.58% Amid AI Boom

Brian Roemmele, a prominent voice in technology, recently asserted that the United States faces a "massive gap in robotics" that will become "very clear in the next six months." He attributed this potential shortfall to the venture capital industry's "fear of investing in hardware," stating, "> The fast money came with iOS apps, and software." However, recent industry reports and funding data present a contrasting picture, indicating a significant surge in US robotics investment, particularly in AI-driven physical technologies.

Venture capital funding for US robotics startups has experienced a remarkable upswing. Global robotics funding reached over $6.1 billion in 2024, marking a 19% increase from the previous year, according to SG Analytics. Robotics' share of overall startup funding has nearly tripled over the last decade, hitting a record 5.58% in 2024, significantly outpacing the broader market's growth, as reported by Hard2Beat VC. This trend actively challenges the long-held "hardware is hard" perception among investors.

This resurgence is largely fueled by rapid advancements in artificial intelligence, which are making robots smarter and more versatile. Bessemer Venture Partners highlights a "turning point for physical AI," noting that top AI talent is increasingly migrating to robotics startups, driven by breakthroughs in commoditized hardware and powerful AI models. Macroeconomic factors, including slower population growth, aging workforces, and the reshoring of manufacturing, are also driving increased demand for automated solutions across various industries, according to SVB.

The sector has attracted substantial investments, with notable examples including Figure's $675 million Series B round in early 2024 and Apptronik's $350 million Series A in February 2025, both focused on developing AI-powered humanoid robots. The rise of Hardware-as-a-Service (HaaS) models has further enhanced robotics' appeal to investors by converting high upfront capital expenditures into more manageable operational expenses, thereby reducing adoption barriers and increasing investability. F-Prime Capital observes that "Vertical Robotics" is experiencing significant growth, defying overall venture capital market trends.

While Roemmele's tweet raised concerns about potential loss of "robotic dominance," North America accounted for approximately 82% of the value in the top 100 robotics funding rounds between 2018 and 2025, demonstrating a concentration of capital in the region. Globally, China leads in robotics penetration across various stages, with its robotics funding in 2025 already surpassing 2024's record, underscoring a dynamic and competitive international landscape. Investors are increasingly focusing on companies that can demonstrate commercial scalability and seamlessly integrate software and data with physical operations.