Investors warn: AI hype is fuelling a bubble in humanoid robotics

By Newsdesk

December 16 2025
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The burgeoning field of humanoid robotics, powered by artificial intelligence (AI), is drawing significant investor interest, but experts warn that the hype might be creating a bubble. A recent report by CB Insights highlights the challenges faced by many humanoid robotics companies, particularly in terms of cost and reliability, which are not expected to be resolved in the near future. This has led investors to advocate for a revenue-first approach, especially within venture capital (VC) circles.

Investors warn: AI hype is fuelling a bubble in humanoid robotics

In a year dominated by AI investments, reports from KPMG and PitchBook reveal that AI continues to lead the charge, accounting for over half of all investments. Within the AI sector, there is a noticeable shift towards industrial humanoid robotics, with CB Insights data showing that this category captured 17 deals last quarter, the highest among its peers. Despite AI's overarching appeal, which includes areas like coding AI agents and end-to-end software development, the focus on humanoid robotics has raised concerns about speculative investments.

The rapid expansion of the humanoid robotics sector has not gone unnoticed. Bloomberg reports that China's leading economic planning industry has cautioned about the potential for a bubble, advising the industry to "balance the speed against the risks of bubbles."

The allure of humanoid robots is largely attributed to AI, which provides these machines with commercial potential previously unattainable. However, Daiva Rakauskaitė, partner and manager of Aneli Capital, which manages a €35 million fund for early-stage startups in Central and Eastern Europe, draws parallels between the current AI-driven investment surge and the dotcom bubble of the early 2000s. She predicts a potential burst of the AI bubble in the next two to three years.

"Many AI startups that can’t yet generate revenue will fail, but we’re reaching a consensus on that in the market. While the same risks persist in humanoid robotics, many investors tend to overlook this," Rakauskaitė notes. "However, it is important to distinguish robotics from humanoid robotics; industrial and logistics robots already generate revenue and can deliver measurable results, while humanoids can’t yet prove their commercial value."

Despite the excitement surrounding humanoid robots, which are often showcased performing tasks from running to boxing, their practical commercial applications remain limited. The real-world challenges for industrial humanoid robotics include issues with inference, dexterity, reliability, and cost. These limitations confine their initial use to environments like factories and warehouses, where tasks are predictable, as outlined in the CB Insights report.

Rakauskaitė emphasises the need for VCs to focus on fundamentals, advocating for a revenue-first philosophy. "Investments in robotics and AI are crucial for the future development of humanity. But investors should remain disciplined and back companies that have realistic goals based on economics, not hype," she advises. "From day one, startups should aim for early revenue streams through licensing, partnerships, and have a clear model of monetisation in the near future. The same revenue-first philosophy can be applied to any field."

Despite the early signs of a bubble in humanoid robotics, Rakauskaitė remains optimistic about the broader robotics sector. The combination of cheaper hardware and rapid AI advancements is accelerating the deployment of robotics in real-world scenarios. She highlights the strategic advantage for Central and Eastern European (CEE) startups, given their proximity to Germany, Europe's largest industrial robotics market.

"The region also has lots of hidden talent. That’s why we dedicated our new fund for this region, aiming to support the talented founders with hands-on guidance and quick decision-making," Rakauskaitė explains. "Many hype-driven investors pull back once the hype fades. Yet to create real innovators, VCs must support them through their full journey. That’s exactly what we are going to do."

As the humanoid robotics sector continues to evolve, the call for a balanced approach between innovation and financial prudence becomes increasingly critical. Investors and startups alike are urged to focus on tangible revenue models to ensure sustainable growth in this promising yet precarious field.

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