Investors Warn That Humanoid Robots Are the Next Financial Bubble

Published: Friday, December 19, 2025 at 7:06 pm

Humanoid Robot Investment Frenzy Sparks Bubble Concerns

The burgeoning field of humanoid robotics is attracting significant investment, but concerns are mounting that the sector is on the verge of a financial bubble. Venture capitalists and industry experts are cautioning against the current surge of investment, citing a disconnect between the hype surrounding these human-like robots and their practical capabilities.

Investors have poured billions into humanoid robot development, fueled by the promise of widespread societal impact, including job displacement across various sectors. However, critics argue that the technology is still in its nascent stages, facing significant technical hurdles that hinder profitability.

Daiva Rakauskait, a partner at Aneli Capital, emphasizes the need for disciplined investment, urging companies to prioritize realistic goals and early revenue streams through licensing and partnerships. This sentiment is echoed by China's National Development and Reform Commission, which has warned of a bubble forming in the robotics sector, particularly due to the proliferation of similar robot designs, potentially diverting funds from crucial research.

Robotics pioneer Rodney Brooks, inventor of the Roomba, has expressed skepticism, stating that the current investment is largely a waste, citing safety concerns and limitations in dexterity and walking capabilities. Brooks predicts a "trough of disappointment" following the current hype cycle.

Despite these warnings, the AI sector continues to attract substantial funding. A recent report from CB Insights revealed that AI accounted for over 50% of venture capital funding in the third quarter of this year, with industrial humanoid robotic startups securing 17 deals. However, the report also highlights fundamental challenges in inference, dexterity, reliability, and cost, limiting initial applications to controlled environments.

The question remains: will the humanoid robot revolution deliver on its promises, or will the current investment frenzy lead to a market correction, leaving behind a trail of unfulfilled expectations?

BNN's Perspective:

While the potential of humanoid robots is undeniable, investors should proceed with caution. The current enthusiasm, while understandable, seems to be outpacing the technological realities. A more measured approach, focusing on practical applications and sustainable business models, is crucial to avoid a market crash.

Keywords: Humanoid robots, AI, investment, financial bubble, robotics, venture capital, technology, market, innovation, automation, startups, profitability, hype, skepticism, funding, CB Insights, Rodney Brooks, Daiva Rakauskait

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