Sanctuary AI is hustling to raise capital.
The Vancouver-based technology innovator is looking to sell its majority stake in Texas robotics supplier Apptronik as the company seeks to raise a US$175 million round, according to a report from The Logic.
The report suggests that Sanctuary has already found a buyer for its Apptronik stake and has also secured two venture capital firms from the U.S. to co-lead new fundraising.
Sanctuary acquired its stake in Apptronik for US$10M in 2022. This year, Google and others poured US$350M into the firm, which raised its valuation—and Sanctuary’s stake—by an order of magnitude.
“We’re creating the world’s most advanced and capable humanoid robots, designed to work alongside humans in meaningful and transformative ways,” Jeff Cardenas, cofounder and CEO and of Apptronik, stated in February. “By uniting cutting-edge AI with hardware engineered for meaningful interaction, we’re shaping a future where robots become true partners in driving progress.”
The sale of Apptronik could yield up to US$125M for Sanctuary, The Logic reports, with VCs contributing another US$50M. The Canadian company is hoping to close the round by the end of May.
The B.C. robotics firm also intends to acquire San Francisco rival Rapid Robotics, according to a memo to shareholders from Sanctuary chief executive James Wells, in order to bolster top-end talent and deepen the company’s footprint in the US.
Sanctuary is the company behind the general purpose robot Phoenix, an advanced humanoid which is powered by the firm’s proprietary AI system, Carbon.
The combo of Phoenix and Carbon stands among the world’s top innovations, but struggles for capital were revealed last year when former Sanctuary CEO Geordie Rose was unexpectedly ousted alongside dozens of staff members.
Given the capital-intensive nature of the robotics business, an ability to raise funds is critical. Sanctuary has secured $140 million so far, which may seem substantial, but is in fact a drop in the bucket compared to what some U.S. robotics rivals have pulled off—Elon Musk’s Tesla AI, for example, secured nearly US$700M in a single round last year.
Founded in 2018, Sanctuary AI ranks among Canada’s top startups to work for.
Leave a Reply