Red Bear AI Raises $29M for Physical AI Innovations

Red Bear AI, a provider of enterprise-grade artificial intelligence solutions, has successfully closed a Series A funding round totaling 210 million RMB (approximately $29 million USD). The company's post-money valuation now exceeds 1.5 billion RMB (over $205 million USD). This significant capital injection was led by Huayu Ventures, with participation from existing investors Gerefeng Investment and Jiawo Capital. Additional strategic backing came from a consortium of firms including Xuhui Capital, SAIC Venture Capital Fund, Jiaming Haochun, and Yuhua Asset. Notably, three founding team members also contributed approximately 30 million RMB to the round at the current valuation, underscoring their conviction in the company's trajectory. This marks the fourth consecutive investment from Huayu Ventures in Red Bear AI.

Founded with a vision to imbue AI with human-like episodic memory, Red Bear AI is pioneering a unique approach that combines 'memory science' with 'multi-modal large models.' This technological synergy aims to enable AI systems to achieve more precise perception, decision-making, and action within the physical world. CEO Wen Deliang articulated the company's long-term ambition, revealing plans to submit an application to the Hong Kong Stock Exchange in the second or third quarter of 2027, with a formal listing anticipated in 2028.

Red Bear AI's core philosophy challenges conventional wisdom in the AI sector. Wen Deliang emphasizes that a company's true competitive advantage lies not in its products, but in the underlying technological ecosystem that continuously generates them – likening it to the enduring value of a goose that lays eggs, rather than just the eggs themselves. The company's 'goose' is its proprietary 'memory science + multi-modal large model' framework. Memory science addresses how AI can effectively reuse past experiences, while multi-modal large models empower AI with comprehensive world perception. This integration is designed to foster continuous innovation and adaptability across diverse applications.

This strategic focus is a direct response to observed limitations in current AI, such as the 'curse of reversal' in large language models, where fragmented knowledge acquisition prevents true contextual understanding. Red Bear AI is digitizing human episodic memory mechanisms, creating an 'intelligent memory system' analogous to the hippocampus. By integrating diverse data streams—including text, images, voice, and sensor inputs—the AI can move beyond mere knowledge acquisition to genuinely 'remember' experiences and habits, a critical step for robust physical AI applications. The company is currently focused on software-based solutions but plans to introduce hardware products leveraging memory science in its second growth phase.

The company's entry into the 'physical AI' domain, a concept championed by NVIDIA CEO Jensen Huang, addresses the persistent challenges of imprecise perception, inflexible decision-making, and ineffective action in AI systems interacting with the real world. Red Bear AI's 'memory science' approach allows for a more nuanced understanding of context, enabling AI to recall specific user preferences or past scenarios, leading to more adaptive and 'considerate' interactions. For instance, in smart home applications, the system can infer needs from radar and voice data without intrusive surveillance, while also remembering individual sensitivities, like an elderly person's aversion to noise.

Financially, Red Bear AI reported strong performance, with audited gross profit margins for its pure software business ranging between 60% and 78%. For 2025, the company projects contract value of 250 million RMB, with recognized revenue of 135 million RMB, yielding a net profit margin of 13% and approximately 18 million RMB in profit. Looking ahead, the target for 2026 is 500-600 million RMB in recognized revenue, with pure ARR (Annual Recurring Revenue) subscriptions expected to surpass 100 million RMB by August-September of the current year. Discussions for a subsequent A+ round are reportedly underway, targeting a valuation of 3 billion RMB.