Last Updated: 16 July 2026
Walden Robotics, a startup building general-purpose robots that learn and improve while doing real work in factories and warehouses, has launched out of stealth. The company was co-founded by Dr. Russ Tedrake, an MIT professor and former Senior Vice President of Large Behavior Models at Toyota Research Institute. Its approach: put robots to work alongside people from day one, and let them get better on the job.
Manufacturing is struggling to find workers. A 2026 study by CADDi and the Society of Manufacturing Engineers found that 79 percent of U.S. manufacturing executives say the skilled-labor shortage remains their greatest challenge, with 69 percent investing in robots and equipment to fill the gap, a nine percent increase from 2025. Investor interest reflects this pressure. Global equity funding in humanoid robotics has reached roughly $8.6 billion, and 2026 funding of $3.8 billion has already exceeded the full-year total for 2025, according to Tracxn.
Walden raised $300 million in a seed round that values the company at $1.1 billion. Toyota co-led through Toyota Motor Corp, Toyota Invention Partners, and Toyota Ventures. Deviation Capital, an early-stage venture firm that spun out of Two Sigma Ventures with roughly $2 billion in assets under management, co-led alongside Toyota. Other participants include NVIDIA, Boeing, AE Ventures, Samsung Ventures, Prologis Ventures, CoreWeave Ventures, Calibrate Ventures, Colle Capital, Shine Capital, NextView Ventures, Squarepoint Capital, One Madison Group, KAS Venture Partners, and Menlo Ventures.
The labor problem runs deeper than a tight hiring market. An estimated 26 percent of the U.S. manufacturing workforce is expected to retire by 2030, potentially leaving more than 1.5 million roles vacant. That gap is increasing demand for robots that can perform tasks traditionally done by people, especially where fixed assembly line equipment cannot handle varied work. Most industrial robots still need months of programming for each new task.
What has changed recently is the emergence of "Physical AI," a type of artificial intelligence designed to control robots in the real world. New machine learning techniques allow robots to learn from demonstrations and improve through practice, so they can handle multiple types of tasks without being reprogrammed each time. Walden uses what it calls Large Behavior Models, or LBMs, which work on a similar idea to the large language models behind chatbots: trained on large amounts of data and applied across many situations, but processing physical movement instead of text.
"Advances in AI are making a new generation of adaptable robots possible, and Walden sits right at the center of that shift. The Walden team is generational, bringing together a rare, interdisciplinary group of experts spanning foundational robotics research, large-scale production hardware, and operational and business leadership. They earn their place on the factory floor by doing real work while helping their customers increase their productivity and competitiveness for the long term."
Colin Beirne, Founding Partner of Deviation Capital
Walden has not published a breakdown of how it will use the capital. But its priorities are visible. The company builds what it describes as the "full stack," meaning it develops the robot hardware, software, AI models, and deployment teams that install robots at customer sites. Many robotics startups focus on either hardware or software. Walden does both, suggesting the funding will spread across engineering, manufacturing, and operations.
The company is already working with customers in automotive, aerospace, semiconductors, electronics, logistics, and life sciences. Its robots handle tasks like machine tending, tool setting, parts kitting, and assembly. Since February 2026, Walden's robots have been performing production work at a Toyota plant in North America, going from a first pilot to real tasks in under two months.
"Toyota is proud to support Walden and has high expectations for this investment and the deep strategic partnership we are building together. Walden's uniqueness is its ability to deliver robots that provide value from day one in real-world work environments: Robots that continuously improve through learning, while always keeping people at the center. This reflects the values shared by Toyota and Walden, including kaizen, jidoka, and a strong commitment to supporting and developing people. Over the long term, we hope to shape the future of manufacturing together and become partners that contribute to improving quality of life for people around the world."
Hiroki Nakajima, Executive Vice President, Member of the Board of Directors (Representative Director), and CTO, Toyota Motor Corporation
Walden Robotics was founded in January 2026 out of Toyota Research Institute, the automaker's research arm. The founding team includes Dr. Russ Tedrake as CEO, Ben Burchfiel as CTO, Kerri Fetzer-Borelli as COO, Dave Johnson as Chief Product Officer, Adrien Gaidon as Chief Strategy Officer, Siyuan Feng as Principal Architect, and Rares Ambrus as Head of AI. They come from MIT, Stanford, Amazon, and Toyota Research Institute. The company's name reflects a principle that this technology should expand human potential and enable everyone to work, craft, and live with greater purpose.
The robots handle tasks that are difficult to automate with traditional equipment, work that requires flexibility, dexterity, or adaptation. Instead of programming each movement in advance, the robots learn from demonstrations and improve through practice. The technology builds on more than a decade of research the team helped develop, including Diffusion Policy, a method for teaching robots complex physical tasks by showing them examples of how humans perform the same work.
"Core advances in Physical AI, and all of the excitement and attention surrounding it, has made disruptive change possible. But providing real value to customers and building a robust and scalable business requires a deep understanding and respect for how manufacturing is done today. The best way to make fast and positive progress is by working closely together with the real experts."
Dr. Russ Tedrake, Co-Founder and CEO of Walden Robotics
The $300 million round draws from both corporate and financial investors. Toyota participated through Toyota Motor Corp, Toyota Invention Partners, and Toyota Ventures. NVIDIA, Boeing, Samsung Ventures, AE Ventures, Prologis Ventures, and CoreWeave Ventures also joined. Co-lead Deviation Capital, formerly Two Sigma Ventures, manages roughly $2 billion in assets.
The financial investors include Calibrate Ventures, Colle Capital, Shine Capital, NextView Ventures, Squarepoint Capital, One Madison Group, KAS Venture Partners, and Menlo Ventures, among others.
