Dexterity Secures $95M To Advance Physical AI In Warehouse Robotics

Dexterity, a robotics company based in the United States and founded by Samir Menon, has raised $95 million in a new funding round led by Lightspeed Venture Partners and Sumitomo Corp. With this investment, the company's post-money valuation has reached $1.65 billion, and its total funding to date now stands at $300 million, according to Bloomberg. The company plans to use the capital to further develop what it refers to as “Physical AI”, a form of artificial intelligence built to perform physical tasks through robots.

Unlike large, generalized AI models, Dexterity relies on a set of smaller, task-specific models. Each of these models focuses on a single factory function—such as stacking boxes or packing items into tight spaces—and is coordinated by a separate overarching model. The goal is to enable robotic systems to operate in environments where adaptability and flexibility are required, allowing them to collaborate with human workers rather than replacing them entirely.

One of the most notable developments from Dexterity is its robot called Mech, designed for industrial and e-commerce applications. Mech comes with dual robotic arms and a mobile base, giving it the capability to move across different sections of a facility. It has a 130-pound lifting capacity and a 16-foot arm span, making it suitable for demanding warehouse tasks like loading and unloading trucks. According to the company, Mech has been built to operate under various environmental conditions—ranging from 32°F to 122°F with humidity levels of up to 90%—and features field-replaceable components to reduce maintenance downtime. The robot’s reported mean time between failures is 10 years, which marks a significant technical milestone in long-term operational stability.

Beyond its hardware offerings, Dexterity also provides a digital twin platform that allows warehouse operators to simulate their environments. With this virtual modeling tool, businesses can test robotic workflows and deployment strategies in a simulated environment before implementing changes on the warehouse floor. This helps reduce the risk and cost of trial-and-error approaches during actual operations.

While Dexterity is among the more visible players in this space, it is not alone in attracting investor interest. Figure AI, which is developing humanoid robots for labor-intensive sectors like logistics, is reportedly in talks to raise $1.5 billion at a $40 billion valuation. Meanwhile, Apptronik, a robotics firm focused on mobile, general-purpose robots, recently raised $50 million to expand its operations in both industrial and service markets.

The recent funding activity reflects a broader push toward automation in industries under pressure to increase efficiency. As companies like Dexterity, Figure AI, and Apptronik continue building robotic systems that are capable of working alongside people, the integration of robotics into daily operations is becoming more practical and widespread across sectors.