Robot Maker 1X Pivots to Factories After Home Market Hurdles
From Living Rooms to Assembly Lines: Neo Robots Find New Purpose
Norwegian robotics company 1X has made a strategic pivot from consumer homes to industrial settings, announcing Thursday a landmark agreement with investor EQT. The deal will see up to 10,000 Neo humanoid robots deployed across more than 300 of EQT's portfolio companies between 2026 and 2030.
The Industrial Turnaround
The robots initially marketed as "the first consumer-grade home helper" will now find their first major application in manufacturing plants, warehouses, and logistics centers. This shift comes after slower-than-expected progress in the consumer market.
"First prove reliability in warehouses, then we'll talk about living rooms," wrote CEO Bernt Børnich in an internal email obtained by reporters. The industrial environment offers several advantages: standardized workflows, controlled safety measures, and abundant opportunities for collecting performance data.
Deal Mechanics
While exact pricing remains confidential, insiders reveal industrial units cost less than the $20,000 pre-sale price of consumer models. Each deployment will involve customized contracts with varying terms and service packages.
EQT Ventures, which led 1X's Series B funding round, leveraged its extensive corporate network to broker this arrangement. The partnership helps both parties - giving EQT companies early access to automation while providing 1X with crucial real-world testing environments.
Why Homes Can Wait
The Neo robot was originally designed for domestic tasks like laundry folding and childcare assistance. While pre-order numbers reportedly exceeded expectations three months after launch, significant barriers remain:
- Privacy concerns over remote operator access through robot cameras
- Safety worries about large humanoid devices coexisting with pets and children
- Multiple analysts pushing back household adoption timelines by 5-10 years
The industrial pivot allows continued refinement of core technologies like object manipulation and spatial navigation in more forgiving environments before tackling complex home settings.
Key Points:
- Strategic shift: From consumer homes to industrial applications
- Scale: Up to 10k robots deployed across EQT's network
- Timeline: Rollout between 2026-2030
- Focus areas: Manufacturing, warehousing and logistics initially
- Advantage: Industrial settings offer better standardization/safety for development
