Robotics “Unicorn” CloudMinds Announces “Short-Term Liquidity Challenges” Amid Growth Push

By Economic Reference News | April 8, 2025

Chinese robotics firm CloudMinds, once hailed as a rising star in artificial intelligence, faces financial turbulence as it pivots toward commercial deployment of humanoid robots for airport services and eldercare.

In response to media reports of a potential shutdown, Chairman Bill Huang acknowledged “short-term liquidity challenges” but emphasized the company’s $230 million order pipeline for 2025. The SoftBank- and Foxconn-backed “unicorn” holds over 2,000 patents and was designated by China’s Ministry of Science and Technology as the National New Generation AI Open Innovation Platform for Cloud Robotics.

Recent investigative reports depicted empty offices and wage disputes involving hundreds of employees across Shanghai, Beijing, and Shenzhen locations. Journalists documented delayed salary payments and layoffs beginning in early 2024, coinciding with strategic shifts toward humanoid robotics development.

“Despite challenges, we remain committed to delivering commercial products in airport services and medical assistance.”

Bill Huang, CloudMinds Chairman

Industry Skepticism

JZ Capital Managing Partner Zhu Xiaohu voiced concerns shared across the venture community: “Humanoid robotics companies face two critical hurdles—prohibitively high technical costs and unproven application scenarios. Many claimed customer demands appear hypothetical.”

Goldman Sachs analysts noted in a recent report that “the inflection point for humanoid robotics remains uncertain,” with true workplace deployment still years away. These assessments come as China’s robotics sector experiences unprecedented growth, with 190,000 new enterprises registered in 2024 alone—a decade high—and 44,000 additional registrations through March 2025.

Qichacha data reveals China’s 849,000 robotics-related enterprises remain fragmented, with 56% operating on less than 2 million yuan in registered capital. CloudMinds’ struggles mirror broader sector challenges as firms balance R&D costs against commercialization timelines.

Strategic Pivot

Huang outlined reorganization plans targeting three verticals: smart manufacturing, eldercare (“silver economy”), and commercial services. The company aims to “accelerate large-scale commercialization” while continuing development of core technologies. This shift follows 2024’s global tech financing contraction and withdrawal of U.S. dollar capital from Chinese ventures.

In its April 2 statement, CloudMinds dismissed reports of collapse as “factually incorrect,” characterizing adjustments as normal restructuring. The company faces intensifying competition from domestic rivals like Ubtech Robotics and Unitree Robotics, whose developer ecosystems reportedly show greater traction.

Disclaimer: This article was translated from Chinese sources. Company names follow official English designations where available (e.g., CloudMinds, Ubtech, Unitree). Financial figures converted at 1 USD = 7.2 CNY.