Investing in Figure AI: Navigating Opportunities in a Leading Robotics Company

Figure AI, a pioneering humanoid robotics company, has captured significant attention following its substantial $675 million funding round in February 2024. This impressive investment round saw contributions from major industry players such as Jeff Bezos, OpenAI, Nvidia, and Microsoft, placing the company’s valuation at an impressive $2.6 billion. Founded in 2022, Figure AI stock is developing faceless robots designed to perform tasks typically handled by humans, ranging from moving boxes to making coffee. For those eager to invest in Figure AI, there are several strategic avenues to consider, even before the company goes public.

Direct Investment through Hiive

Although Figure AI remains a private entity without a publicly traded stock symbol, accredited investors can purchase shares directly from existing shareholders via Hiive, a specialized marketplace. Here, individual sellers—who may include current or former employees, venture capital firms, or angel investors—list shares at their asking prices, which buyers can either accept or negotiate. This platform provides a transparent view of the order book, including asking prices, bids, and recently traded prices, facilitating informed investment decisions.

Investing through ARK Venture Fund

Another promising investment route is the ARK Venture Fund, which participated in Figure AI’s $675 million funding round. As of late February, Figure AI constituted 5.07% of the ARK Venture Fund, ranking it as the fund’s seventh-largest holding. The ARK Venture Fund focuses on innovative companies, irrespective of their public or private status, and is accessible to both accredited and retail investors through platforms like Titan and SoFi, albeit with a total fee of 2.90%.

Indirect Exposure via Publicly Traded Companies

Investors can also gain indirect exposure to Figure AI by investing in publicly traded companies that hold stakes in the robotics firm. Intel, for instance, has invested in Figure AI twice, once in July 2023 and again in the recent round. Similarly, Microsoft and Nvidia, both of which participated in the latest funding round, provide indirect investment opportunities. However, given the vast market capitalizations of these tech giants—$185 billion for Intel, $3 trillion for Microsoft, and $2 trillion for Nvidia—their individual stakes in Figure AI represent a relatively minor portion of their overall businesses. Consequently, even a substantial increase in Figure AI’s valuation is unlikely to significantly impact the stock prices of these larger companies.

Anticipating an IPO

For those willing to wait, an eventual IPO could provide a straightforward investment opportunity. Although Figure AI has not indicated a specific timeline for going public, it is plausible that the company will remain private for a few more years, allowing it to further commercialize its products. CEO Brett Adcock envisions a future where humanoid robots undertake labor that humans are unwilling or unable to perform, potentially leading to the sale of millions, if not billions, of these robots. Should Figure AI go public, prospective investors will need a brokerage account to participate in the IPO, with platforms like Public being recommended for this purpose.

Strategic Partnerships and Future Prospects

A notable aspect of Figure AI’s growth strategy involves its partnership with OpenAI. As part of OpenAI’s investment, the collaboration aims to develop specialized AI models to enhance the robots’ ability to understand, process, and reason from language. Peter Welinder, OpenAI’s VP of Product & Partnerships, highlighted that this partnership could revolutionize the role of robots in daily life. OpenAI, backed by Microsoft, stands to benefit significantly if Figure AI’s robots become widely adopted, with potential profits flowing back to Microsoft due to its stake in OpenAI.

In conclusion, while Figure AI remains a private company with no immediate plans for an IPO, there are several viable investment avenues. Direct purchases through Hiive, investing via the ARK Venture Fund, and gaining indirect exposure through major tech companies all offer unique opportunities for investors eager to be part of Figure AI’s innovative journey. As the company continues to advance its humanoid robotics technology, its potential impact on the market and everyday life could be profound, making it a compelling investment prospect.

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