Embodied AI Is Suffering from Anxiety: Cooling Investment, Valuation Corrections, and IPO Setbacks

In the second half of 2026, financing in the embodied AI sector cooled markedly: 19 deals worth 4.934 billion yuan in the first half of October, far below the peak monthly figure of 33.98 billion yuan. Citing Unitree Robotics' share price falling more than 63% from its post-IPO peak and Yinghe Robotics' valuation of over $500 million against revenue of 4.33 million yuan, the article points to a mismatch between revenue and valuation, and examines valuation corrections and stricter IPO reviews triggered by models such as circular transactions at data-collection centers and shareholders who are also customers.