Figure AI has raised $1.5 billion in a new Series C financing round led by Microsoft and OpenAI, the company said, as it moves to expand production of humanoid robots for industrial and household tasks. The funding gives the startup a valuation of more than $39 billion, according to the report.

The latest investment is expected to help Figure AI build manufacturing capacity for its next-generation robots and accelerate deployment at a time when robotics firms are competing to turn lab prototypes into commercial products. The company has positioned its machines for uses ranging from factory work to domestic assistance.

Microsoft’s and OpenAI’s participation highlights continued investor interest in embodied AI and automation, two areas drawing major capital as companies race to develop systems that can operate in physical environments. The round adds fresh momentum to one of the best-funded startups in humanoid robotics.

Still, the sector faces major hurdles, including safety, reliability, cost, and the challenge of proving that humanoid robots can perform useful tasks at scale. Figure AI now enters a more demanding phase, where manufacturing execution and real-world performance will matter as much as technical ambition.