AI hype is leading investors to bet big on humanoid robotics but is it just another bubble?

The robots are coming, there’s no question about that, but many humanoid robotics startups backed by venture capital firms face deep problems related to cost, reliability, and general real-world usefulness, according to a new report from CB Insights.

Investors warn that enthusiasm driven by AI hype is outpacing commercial reality, creating concerns that parts of the sector are drifting toward speculation rather than reality.

SEE ALSO: Rise of the robots: RealSense and Nvidia team up on physical AI

Venture capital investment remains heavily focused on AI, accounting for more than half of all deals this year, but investors are increasingly turning their attention to the next big thing -- humanoid robotics.

CB Insights data shows industrial humanoid robotics recorded 17 deals in the most recent quarter, more than any other AI-related category. Other areas, such as coding agents, copilots, and end-to-end software development AI, attracted far fewer investments deals in comparison.

humanoid robotics: Hype vs. reality

This concentration of capital has raised concerns among investors that too many humanoid robotics companies are promising technical breakthroughs without clear proof they can generate actual revenue.

Several investors argue that the sector is being driven more by excitement than by business fundamentals. Afterall, who doesn’t want to see a world filled with humanoid robots that can walk, run, and work like a person?

Advances in AI, improved perception, planning, and control systems have all expanded what robots can theoretically do, creating expectations that humanoids could soon operate in industrial environments.

According to Daiva Rakauskaitė, partner and manager at Aneli Capital, there are clear parallels between today’s AI-led investment surge and the dotcom boom of the early 2000s. She says many startups are vulnerable because they lack near-term paths to revenue.

“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 says. “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.”

Around the world, humanoid robotics companies continue to showcase prototypes performing complex actions such as running or boxing. These demonstrations inevitably attract attention, but their practical commercial use remains questionable.

CB Insights notes that even industrial humanoid robotics faces major constraints. Challenges include real-time decision making, physical dexterity, system reliability, and high costs. These issues limit early deployments to controlled environments like factories and warehouses with predictable tasks.

Rakauskaitė argues that these limitations make a revenue-first approach especially important. She says venture capital firms should prioritize startups that focus on monetization early, rather than chasing growth driven by hype.

“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 says. “From day one, startups should aim for early revenue streams through licensing, partnerships and have a clear model of monetization in the near future.”

Despite concerns around humanoid robots, Rakauskaitė remains optimistic about the broader robotics sector. She points to falling hardware costs and faster AI progress as drivers of real-world deployment in non-humanoid systems.

She also sees strong potential in Central and Eastern Europe, citing proximity to Germany’s industrial base. “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. 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,” Rakauskaitė concludes.

What do you think about investor concerns around humanoid robotics and AI hype? Let us know in the comments.