Function over flash: Specialized robots attract billions with efficient task handling

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By Akash Sriram

(Reuters) -These robots don't break into a jig or jump, but their ability to do single tasks cheaply and efficiently is attracting investor dollars as focus shifts to function from flash.

Far from the sleek humanoids of science fiction that are meant for complex and adaptive work, boxy and utilitarian robots - some the size of industrial tool chests - are built to handle tasks such as hauling parts, collecting trash or inspecting equipment.

Interest has been rising in such specialized robots as they offer a clear path to profitability, given the stress on automation across industries, including retail, defense and waste management, company executives, analysts and investors told Reuters.

In contrast, makers of general-purpose humanoids are still grappling with technical challenges, including limited training data and difficulty operating in unpredictable real-world environments, to make them viable.

Data from PitchBook shows robotics companies globally raised $2.26 billion in the first quarter of 2025, with more than 70% of that capital funneled into firms making task-focused machines.

The funding reflects a broader global race to robot supremacy. From Shenzhen to Silicon Valley, companies are trying to develop machines that can take on physical work, with China emerging as a major player thanks to ample government support.

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The push has been fueled by advances in chip technology, which has enabled more sophisticated AI models that allow robots to perceive, process and react without needing remote servers.

"With Nvidia's (NVDA) Orin NX, we were able to put far more AI models on the edge than we could earlier," said Saurabh Chandra, CEO of Ati Motors, referring to Nvidia's high-performance AI chip designed to run multiple machine learning models directly on edge devices such as robots, without relying on the cloud.

Based in India's tech capital of Bengaluru, Ati Motors makes robots that can tug around more than 1,000 kilograms on factory floors and industrial sites. Ati Motors has deployed hundreds of robots across more than 50 factories globally, including at Hyundai, Forvia, and Bosch, with its flagship Sherpa Tug logging over 500,000 kilometers in operation.

In healthcare, Austin-based Diligent Robotics is seeing traction with Moxi, a robot that handles non-patient-facing tasks such as delivering supplies, medications and lab samples.

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"We've found that by solving a very specific problem in a high-need area like healthcare, we can create a sustainable business model," Diligent Robotics CEO Andrea Thomaz said, adding Moxi has reached product-level profitability.