5 Ways to Invest in Figure AI Stock

Figure AI, a humanoid robotics company, garnered $675 million in funding in late February 2024, attracting high-profile investors such as Jeff Bezos, OpenAI, Nvidia, and Microsoft, and valuing the company at $2.6 billion. Founded in 2022, Figure AI is developing faceless robots capable of performing human tasks like moving boxes or making coffee. Despite being a private company, there are still ways to invest in Figure AI today. Here are five strategies:

1. Buy Shares Directly from Shareholders

Although Figure AI is private and lacks a public stock symbol, accredited investors can purchase shares directly from existing shareholders through the Hiive marketplace. Hiive hosts unique listings created by different sellers, each setting their own price and quantity of shares. Buyers can accept these prices or negotiate directly with sellers, who might be current or former employees, venture capital firms, or angel investors. After registering on Hiive, you can view the entire order book of asking prices, bids, and recent trade prices.

2. Invest in the ARK Venture Fund

Cathie Wood’s ARK Venture Fund, which participated in Figure AI’s $675 million funding round, has Figure AI as its 7th largest holding at 5.07% of the fund as of February 29. The ARK Venture Fund focuses on innovative companies, whether privately held or publicly traded. Other top holdings include Anthropic, Epic Games, Freenome, Relation Therapeutics, and Blackdaemon. Accredited investors can invest directly in the ARK Venture Fund, while retail investors can access it through Titan or SoFi. The fund has total fees of 2.90%.

3. Invest Indirectly via Public Companies

Another way to gain exposure to Figure AI is by investing in publicly traded companies with stakes in the robotics firm. Intel (INTC), Microsoft (MSFT), and Nvidia (NVDA) have all invested in Figure AI. Although the exact amounts of their investments aren’t disclosed, given their large market capitalizations, these stakes are likely insignificant relative to their overall business sizes. For example, even a $300 million investment by Microsoft would represent only 0.01% of its $3 trillion market cap. While a significant rise in Figure AI’s value might not drastically impact these companies’ stock prices, it offers indirect exposure to Figure AI’s potential growth.

4. Invest in Other Robotics Companies or Funds

The humanoid robot market is projected to reach $38 billion by 2035. Here are some publicly traded companies involved in robotics:

Tesla (TSLA): Developing the Optimus humanoid robot.
UiPath (PATH): Specializes in robotic process automation.
Kratos Defense & Security (KTOS): Develops unmanned military systems.
Trimble (TRMB): Utilizes robotics in construction and agriculture.
Teradyne (TER): Provides automated test equipment for semiconductors.
Archer Aviation (ACHR): Develops urban air mobility solutions and was co-founded by Figure AI’s founder, Brett Adcock.

Alternatively, you can diversify across many AI robotics companies through ETFs like:

Global X Robotics & Artificial Intelligence ETF (BOTZ)
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
ROBO Global Robotics & Automation ETF (ROBO)

5. Wait for the Figure AI IPO

The last option is to wait for Figure AI to go public. Although the company hasn’t indicated when this might happen, it’s likely several years away, giving Figure AI time to commercialize its products. CEO Brett Adcock envisions humanoid robots performing tasks humans are unwilling or unable to do, potentially leading to massive sales. When Figure AI does go public, you’ll need a brokerage account to buy its stock. Public is a recommended platform for this purpose.

Figure AI’s Partnership with OpenAI

Part of OpenAI’s investment in Figure AI includes a partnership to develop specialized AI models for Figure’s robots. These models aim to enable robots to process and reason from language, enhancing their ability to assist in everyday tasks. OpenAI’s VP of Product & Partnerships, Peter Welinder, highlighted the potential this collaboration has to transform how robots can help in daily life. Since Microsoft backs OpenAI, any success Figure AI achieves could significantly impact OpenAI’s profits, benefiting Microsoft through its profit-sharing arrangement.

Figure AI Valuation History

Founded in May 2022, Figure AI’s rapid growth and notable investments reflect its potential and market confidence. The company’s valuation has steadily increased, reaching $2.6 billion with the latest funding round in February 2024.