Chicago robotics company Formic raised $50 million to let factories pay as they go for robots, which could lower the cost of automating a small plant.
Formic, a Chicago company that rents robots to factories, has raised $50 million. The money includes a $40 million Series B round and $10 million in asset-backed financing. CEO Saman Farid shared the news first with Axios.
Formic sells what is called robots as a service. Instead of buying a robot outright, a manufacturer pays as it goes. Farid describes Formic as a physical AI platform, a term for companies that bring artificial intelligence into machines that work in the real world.
The clearest group is manufacturers, especially small plants and shops. Buying automation can mean a large upfront bill. A pay-as-you-go model could let a smaller business try robots without that cost.
The material does not say who invested, how much Formic charges, or what its robots can do. It also does not say how many factories use the service or what the money will be spent on. Owners weighing this kind of service will need those details first.
Formic's $50 million raise shows growing interest in renting factory robots, but pricing and terms are not yet public.
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