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Figure AI, a humanoid robotics company, received a staggering $675 million in funding in late February 2024.
What’s more impressive? Who participated in the round.
Microsoft, OpenAI, Nvidia, and Jeff Bezos all have stakes in Figure AI. They, along with a few other private equity firms, valued the company at $2.6 billion.
Figure, which was founded in 2022, is building a faceless robot that can do tasks in the place of humans, such as moving a box onto a conveyor belt or making a cup of coffee.
Despite its success in the private markets, the company is likely years away from an IPO. Fortunately, you don’t need to wait for it to go public to invest.Lucknow Investment
Here are 5 ways to invest in Figure AI stock today.
Figure AI is a private company, so it has no stock symbol or public stock price. But accredited investors can still buy its shares directly from existing shareholders through a marketplace called Hiive.
There are currently 6 unique listings for Figure AI stock on Hiive.
Each individual listing is created by a different seller who sets their own asking price and quantity of shares. Buyers can either accept the asking prices as listed or place bids and negotiate directly with the sellers.
Sellers may be current or former employees, venture capital firms, or angel investors. After registering, you’ll be able to see the entire order book of asking prices, bids, and recently traded prices.
Check out the listings for Figure AI on Hiive here:
Cathie Wood’s ARK Venture Fund also participated in the company’s $675-million roundMumbai Investment. As of September 2024, Figure AI made up 3.89% of the fund, the 9th largest holding.
The Venture Fund invests in what they believe to be the most innovative companies, regardless of whether they’re privately held or publicly traded.Ahmedabad Wealth Management
The fund’s top 5 holdings are SpaceX, Epic Games, Freenome, Relation Therapeutics, and Blockdaemon. Anthropic, Discord, and Zipline are also in the top 10.
All accredited investors can invest in the ARK Venture Fund via the company’s website. Additionally, all retail investors can invest in the Fund via SoFi. The fund has total fees of 2.90%.
Another way to get exposure to Figure AI is to invest indirectly via publicly traded companies that have stakes in the robotics company.
Intel (INTC) has invested twice in the company, once back in July 2023 (in a round that raised $9 million at a valuation of $350 million) and in the recent round.
Microsoft (MSFT) and Nvidia (NVDA) also participated in the latest round, which raised $675 million from 13 investors at a $2.6 billion valuation.
It’s not publicly disclosed how much each of these companies invested. However, given their market capitalizations of $185 billion, $3 trillion, and $2 trillion, each of their stakes is likely an insignificant amount relative to the total size of their businesses.
For example, even if Microsoft invested $300 million of the $675 million raised in the most recent round, that stake would make up 0.01% of its $3.2 trillion market cap.
Even if Figure AI were to 10x, it wouldn’t change Microsoft’s stock price in a meaningful way.
As a whole, the humanoid robot market is expected to reach $38 billion by 2035.
And while Figure AI may be in a unique position, it’s not the only company building robots. Here are a few publicly traded companies working on robotics:
Tesla (TSLA) is involved in the humanoid robot race. Its robot, which it calls Optimus, can walk, fold clothes, and sort objects by color. After Figure AI announced its partnership with OpenAI, Elon Musk replied: “Bring it on.”
UiPath (PATH) specializes in robotic process automation, in which software robots automate repetitive tasks in various industries and free up human workers for more meaningful tasks.
Kratos Defense & Security (KTOS) develops unmanned systems for military purposes. While not directly impacting civilian life, the company’s tech advancements contribute to the broader field of autonomous systems like self-driving vehicles and delivery drones.
Trimble (TRMB) utilizes robotics in industries such as construction and agriculture to develop automated solutions that enhance efficiency and safety.Simla Wealth Management
Teradyne (TER) supplies automated test equipment for the semiconductor industry. Its robotics solutions help ensure the quality and reliability of electronic devices used in daily activities.
Archer Aviation (ACHR) is developing electric vertical takeoff and landing aircraft for urban air mobility. Notably, Archer was co-founded by Brett Adcock, the founder of Figure AI.
This is not an exhaustive list, as there are more public companies with a foothold in robotics.
Of note, if you don’t know which stock to invest in, you may choose to diversify across many AI robotics companies via an ETF.
Here are a few you may be interested in:
Global X Robotics & Artificial Intelligence ETF (BOTZ): This fund focuses on companies involved in the development and production of robots or AI.
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT): This is another global fund focusing on artificial intelligence and robotics companies.
ROBO Global Robotics & Automation ETF (ROBO): This fund buys companies from around the world that are focused on robotics and automation.
Finally, your last option is to simply wait for Figure’s IPO. However, the company has made no indication of when it will go public.
Given the industry it’s in and the capital available in the private market, I suspect Figure won’t become publicly traded for at least a few more years. This would give it enough time to commercialize its product.
When asked about his vision for the company, CEO Brett Adcock said, “If we can just get humanoids to do work that humans are not wanting to do because there’s a shortfall of humans, we can sell millions of humanoids, billions maybe.”
Figure will likely go public well before this vision becomes a reality.
If it does go public, you’ll need a brokerage account to buy itLucknow Wealth Management. And if you’re in the market, we recommend Public.
Part of OpenAI’s investment in Figure AI came with a partnership agreement. The collaboration will include OpenAI building specialized AI models for Figure’s robots.
The goal of these models is to enable the robots to listen, process, and reason from language.
Peter Welinder, OpenAI’s VP of Product & Partnerships, said the collaboration will “open up new possibilities for how robots can help in everyday life.”
OpenAI is backed by Microsoft. And while Microsoft’s relatively small stake in Figure AI is unlikely to move its stock price, this partnership is something to keep an eye on.
Microsoft’s stake in OpenAI entitles it to up to 75% of the lab’s profits. So, if Figure’s robots become a part of everyday life, the business could have a meaningful impact on OpenAI’s profits, which would get passed through to Microsoft.
You can read more about OpenAI and Microsoft here.
Figure AI was founded in May 2022.
Its most recent round, its Series B, the company raised $675 million at a post-money valuation of $2.6 billion. Participants in the round included Microsoft, OpenAI, Nvidia, Jeff Bezos, Parkway Venture Capital, Intel Capital, Align Ventures, and ARK Invest.
Hyderabad Investment
