Humanoid Robot Hype: An Investment Bubble?

Experts question the immediate practical use and safety of humanoid robots despite massive VC funding.

Despite billions in venture capital, experts like Rodney Brooks and Fady Saad are skeptical about the near-term viability of humanoid robots. They cite issues with dexterity, practical use cases, and significant safety concerns for widespread adoption. The market might not be ready for humanoids yet.

Katie Rowan

By Katie Rowan

October 11, 2025

4 min read

Humanoid Robot Hype: An Investment Bubble?

Key Facts

  • Roboticist Rodney Brooks warns of an investment bubble in humanoid robots.
  • Experts believe humanoids lack dexterity for fine motor movements, making them 'useless' for many tasks.
  • Widespread adoption of humanoid robots is not expected for several years, possibly over a decade.
  • Safety concerns, including potential harm to humans and pets, are significant hurdles.
  • Cybersecurity risks, such as hacking, pose additional challenges for home integration.

Why You Care

Are we on the verge of a robot uprising, or just another tech investment bubble? Billions of dollars are pouring into humanoid robot companies right now. But what if these machines aren’t quite ready for prime time? This could impact your future workplaces and even your home life.

Famed roboticist Rodney Brooks has sounded an alarm, according to the announcement. He suggests we are seeing an investment bubble in humanoid robots. This news challenges the widespread excitement around these machines. Understanding this perspective is crucial for anyone following system trends.

What Actually Happened

Rodney Brooks, the iRobot founder, has warned about an investment bubble in humanoid robots, as mentioned in the release. He believes these robots will struggle with dexterity. Dexterity refers to fine motor movements with hands. This limitation, he argues, could render them largely useless for many tasks. This opinion comes despite significant venture capital funding. Companies like Figure are attracting huge investments, the research shows.

Multiple robotics-focused VCs and AI scientists share this cautious view. They do not expect widespread adoption of humanoids for several years. Some even suggest it could take more than a decade, the team revealed. Fady Saad, a general partner at Cybernetix Ventures, expressed similar skepticism. He sees limited market demand beyond specialized uses like space exploration, according to the announcement.

Why This Matters to You

This skepticism directly impacts future applications of robotics. If humanoid robots lack dexterity, their usefulness in many roles diminishes. Imagine a factory floor where robots need to handle small, delicate components. Without fine motor skills, they simply cannot perform these tasks. This means human workers will still be essential for precision work.

What’s more, safety is a major concern, as detailed in the blog post. Fady Saad highlighted risks when humanoids share spaces with people. “If this thing falls on pets or kids, it will hurt them,” Saad said. This statement underscores the potential dangers. Think about a humanoid robot in your home. What if it malfunctions or gets hacked? These are serious questions about personal safety and privacy.

Consider these key concerns for humanoid robot adoption:

  • Dexterity Limitations: Robots struggle with fine motor movements.
  • Limited Use Cases: Few practical applications beyond niche areas.
  • Safety Risks: Potential harm to humans and pets in shared environments.
  • Cybersecurity Threats: Risk of hacking and unpredictable behavior.

How comfortable would you be having a humanoid robot in your home, knowing these risks? Your comfort level could shape future market demand.

The Surprising Finding

The most surprising aspect of this discussion is the disconnect between investment and practical readiness. Billions of venture dollars are being poured into humanoid robot companies, the company reports. Yet, prominent experts like Rodney Brooks argue these robots won’t achieve essential dexterity. This challenges the common assumption that significant funding automatically translates to practical advancements. It suggests investors might be overlooking fundamental technical hurdles. The team revealed that many VCs and AI scientists don’t foresee wide adoption for years, or even a decade. This timeline is much longer than the current investment frenzy might imply. This perspective forces us to reconsider the future of humanoid robotics. It highlights a potential gap between technological aspiration and current capabilities.

What Happens Next

The next few years will be essential for humanoid robot creation. We might see continued investment, but with a sharper focus on solving dexterity and safety issues. For example, developers could create more safety protocols. They could also design robots specifically for controlled industrial environments first. The technical report explains that widespread adoption could still be five to ten years away. This is a more realistic timeline than some optimistic projections. For you, this means don’t expect a humanoid assistant in your home next year. Instead, look for gradual improvements in specific industrial settings. Companies need to address these fundamental challenges. Otherwise, the current investment boom might indeed burst, as mentioned in the release. The industry must prioritize practical functionality and user safety over hype.

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