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Matt Carney was good at building robots — he just didn’t want to. While earning his PhD at MIT, he’d spent years studying mechanical engineering and biomechatronics in service of developing bionic prosthetics that could help people who'd lost limbs. He hoped to build robotic legs that could pick up on the phantom signals sent by a body’s muscles or function autonomously so it could move naturally, unlike the plastic, unmoving prostheses that are common now.
But as he began talking to venture capitalists about funding a company that would develop these so-called bionics, he quickly discovered that the market didn’t want robotic devices that could replace human limbs, it wanted robots that could replace human beings, the sort of humanoids championed by sci fi laureates like Isaac Asimov and self-appointed tech visionaries like Elon Musk.
Investors cautioned him against venturing into the cost-heavy medical world and regularly asked if he might be more interested in building humanoids or exoskeleton suits. Even trusted experts building bionic limbs told him the technology currently available wasn’t advanced enough to be truly helpful. Without a breakthrough in AI, let alone an addressable market, building futuristic robot body parts wasn’t something investors would bankroll.
So Carney looked elsewhere, taking a job as chief engineer at Persona AI, an early-stage contender in the field of humanoid robotics that has raised $27 million in funding. It’s facing off against much larger startups like Boston Dynamics, Foundation Robotics and Figure AI, which have achieved valuations greater than $1 billion for their human-like bots. Then there’s the elephant in the room: Musk’s Tesla, which the world’s richest man has pivoted toward building humanoid robots, with the idea that they’ll generate trillions in revenue for the company and someday outnumber humans.
Musk has touted a lofty vision of the future where he sees these robots as a catch-all method for labor, posting on X about replacing surgeons, being a “personal C-3PO or R2-D2” to perform the bidding of an owner, and, of course, driving a car. Much of the tech world seems sold on them, too. The Information reported Wednesday that Amazon will begin testing out package delivery with humanoids. Speaking onstage at an event in late May for the Ronald Reagan Presidential Foundation and Institute, billionaire venture capitalist Marc Andreessen said that humanoid robotics provide a solution to regaining manufacturing dominance in the United States, with these robots performing tedious tasks such as installing screws on an assembly line.
Carney plans to return to the prosthetics space one day. But he isn’t the only entrepreneur who originally wanted to focus on building so-called bionic limbs to help real people, and instead have been pushed to follow the money: why not build for robots too?
Take San Diego-based Psyonic, which officially launched in 2021 solely as a prosthetics company, building a waterproof robotic hand with built-in sensors to register touch sensations (alongside perks like the ability to charge a cell phone). Psyonic found some early traction, with Medicare covering the cost of its hands for patients. It was last valued at $65 million in 2024 and has raised a total of $8 million, according to PitchBook.
