Figure AI Shifts Away from OpenAI, Builds In-House Models

Figure AI Terminates OpenAI Partnership, Pursues In-House AI Development

Figure AI, a robotics innovator dedicated to the development of versatile humanoid robots for both commercial and domestic applications, revealed on Tuesday via X that it is dissolving its agreement with OpenAI. The company, headquartered in the Bay Area, has chosen to concentrate on internally developed AI solutions following what it describes as a significant advancement.

Founder and CEO Brett Adcock, in a subsequent discussion with TechCrunch, remained reserved regarding specific details. However, he assured that a groundbreaking innovation for humanoid robots would be unveiled within the next 30 days.

Investment and Initial Collaboration

OpenAI has historically been an investor in Figure AI. Last year, the two organizations announced a collaborative effort aimed at “developing next-generation AI models for humanoid robots.”

Concurrently, Figure announced a substantial funding round of $675 million, resulting in a company valuation of $2.6 billion. To date, Figure has secured a total of $1.5 billion in investment capital.

A Surprising Shift in Strategy

This decision represents a notable surprise, considering OpenAI’s prominent position and influence within the technology sector. Association with OpenAI typically provides a considerable boost to a company’s public profile.

In August, both companies jointly announced that the Figure 02 humanoid robot would leverage OpenAI’s models for natural language processing and communication.

The Challenge of Integration

According to Adcock, the primary obstacle in the collaboration was the complexity of integration. OpenAI, being a large and diverse organization, possesses extensive AI capabilities.

However, embodied AI – the application of artificial intelligence to physical robots – is not the core focus of the ChatGPT developer. Adcock posits that a more effective approach involves creating a fully integrated AI model specifically designed to power dedicated hardware.

“To effectively scale embodied AI in real-world scenarios, vertical integration of robot AI is essential,” Adcock explained to TechCrunch. “We cannot outsource AI development any more than we would outsource our hardware production.”

OpenAI’s Broader Interests in Robotics

OpenAI has demonstrated a diversified investment strategy within the humanoid robotics field. The company is also a significant investor in 1X, a Norwegian robotics startup.

While many humanoid robotics companies are targeting warehouse and factory applications, 1X has increasingly focused on developing robots for home use. Figure AI is also exploring potential applications within the home environment, as Adcock revealed to TechCrunch last September at the company’s Sunnyvale office.

Focus on Industrial Applications

Currently, Figure’s primary focus remains on industrial applications. Automakers, with their substantial financial resources, are more readily able to invest in and test emerging technologies.

BMW announced last year that it had initiated the deployment of Figure robots at its manufacturing facility in South Carolina.

OpenAI’s Potential Hardware Development

OpenAI may also be considering the development of its own humanoid hardware. The company recently submitted a trademark application to the U.S. Patent and Trademark Office (USPTO) pertaining to humanoids.

The application references “user-programmable humanoid robots” and “humanoid robots with communication and learning capabilities for assistance and entertainment.”

While trademark filings do not guarantee future product releases, the timing of these developments – occurring within a week of each other – is noteworthy. Figure AI’s substantial funding has enabled rapid expansion of both its hardware and software teams, and a recent relocation to a larger Bay Area office reflects this growth.

The Benefits of a Vertically Integrated Approach

The approach of developing proprietary software mirrors the ecosystem strategy employed by Apple. This method can lead to software that is highly optimized for specific hardware systems.

However, it is a challenging and resource-intensive undertaking.

Industry Trends in AI Development

The majority of humanoid robotics firms are developing their own custom AI models to varying degrees, although industry partnerships remain common. Boston Dynamics, for example, announced in October that it is collaborating with Toyota Research Institute to enhance the artificial intelligence capabilities of the Atlas humanoid robot.

TechCrunch has contacted OpenAI for a statement regarding this matter.