DeepSeek Backs Unitree to Build Humanoid Robot Brains

DeepSeek, the Hangzhou-based AI firm known for its low-cost large language models, is purchasing 933,399 shares of fellow Hangzhou resident Unitree for approximately $2.8 million. The transaction is part of Unitree's upcoming initial public offering in Shanghai, which opens for public subscription on August 10. The two companies have agreed to a strategic partnership to develop AI brains for humanoid robots, combining DeepSeek's software expertise with Unitree's mechanical and motion-control capabilities.

The IPO values Unitree at roughly $9.04 billion, up from a previous valuation estimate of $7.4 billion last September. Other major domestic backers joining the funding round include Tencent's investment arm, China National Petroleum's Kunlun Capital, and a subsidiary of Southern Power Grid, with each of those three entities contributing about $20 million. Unitree's financial performance has surged recently, with revenue quadrupling to nearly $252 million last year, driven by $128 million in humanoid robot sales.

Despite this growth, Unitree faces headwinds. United States sales previously accounted for about 13% of its revenue, but a recent Federal Communications Commission ban on imported Chinese robots has slowed its momentum. Nonetheless, Unitree remains a prominent player in hardware, recently securing a deal to supply its H2 Plus humanoid robot to Nvidia for the chipmaker's new research platform.

For AI practitioners and robotics developers, this alliance signals a deepening integration between frontier foundation models and physical hardware. Under the agreement, Unitree will prioritize DeepSeek for model-training services, while DeepSeek will favor Unitree for robot procurement and embodied AI research. This reciprocal arrangement could accelerate the deployment of safe, reliable physical agents capable of navigating complex, unfamiliar environments.