California-based Skylark Labs is in discussions to raise between $100 million and $150 million in a funding round that could elevate its valuation to over $1 billion, according to founder and CEO Dr. Amarjot Singh. The funding round, which is expected to close soon, has already seen about 70% of the target amount committed, Singh stated. Investors participating in this round include Bommie Capital, Riceberg, Symphony Ventures, and Cushman & Wakefield.
Key Details
Skylark Labs specializes in physical AI, developing self-learning artificial intelligence systems for edge devices that can be utilized in robots, drones, and autonomous vehicles. These technologies are aimed at applications in defense, border security, and public safety. The company previously raised $6 million at a valuation of $250 million in April 2023. The current fundraising effort reflects a growing interest in physical AI, which combines robotics and artificial intelligence to enable machines to perform real-world tasks.
Background
According to PitchBook data, investors allocated a record $16.3 billion to robotics and physical AI startups in the first quarter of 2026, spread across 492 deals. Siddharth Sawant, managing partner at Varyon Partners, noted,
The next phase of AI is moving from software into machines that can perceive, reason and act in the physical world. Physical AI will emerge as the next major AI investment theme after generative AI.
This trend is supported by the expansion of infrastructure such as data centers and edge computing, which enhances demand for defense and autonomous technologies.
The potential funding round could impact the technology and defense sectors, particularly those focused on robotics and AI. Increased investment in physical AI may lead to heightened competition among startups, affecting stock performance in related industries. Investors will watch for the completion of this funding round and any subsequent announcements regarding partnerships or product developments.