BOT-02: Strategic Allocation in 1X Technologies

TLDR A proposal to allocate 350,000 USDC from the DAO’s treasury to secure a strategic position in 1X Technologies, a breakthrough company at the forefront of humanoid robotics. This allocation aligns with the DAO’s long-term vision of building a high-growth, future-facing portfolio in the robotics and Embodied AI sector.

Exec Summary 1X Technologies is advancing humanoid robotics with its NEO robot and Redwood Vision-Language-Action (VLA) model, enabled by its proprietary World Model (1XWM). Relocating to a new headquarters in Palo Alto, California, 1X, AI chief Eric Jang, has declared that 1X is pursuing Artificial General Intelligence (AGI) by leveraging diverse, real-world data from home environments. Strategic partnerships with NVIDIA enhance its technological edge, with NEO Gamma set for initial deployments in select early-adopter homes under non-disclosure agreements. In January 2024, 1X raised $100 million in a Series B round at a $9.41 billion post-money valuation, led by EQT Ventures and backed by NVIDIA, SoftBank, Samsung NEXT, and Jeff Bezos, positioning 1X as a high-potential player in the humanoid robotics market.

Overview Founded in 2014 by Bernt Øivind Børnich as Halodi Robotics, 1X Technologies is a Norwegian-American company headquartered in Palo Alto, California, with operations in Sunnyvale and Moss, Norway.

It develops safe, affordable humanoid robots, with its flagship NEO designed for household tasks like cleaning and caregiving, and future applications in hospitality, logistics, and eldercare. NEO’s tendon-driven, bio-inspired design ensures intrinsic safety, while its proprietary Revo1 servo motor delivers 5.5x the torque-to-weight ratio of leading motors, using 20% of the copper and magnets, enabling cost-effective, quiet, and powerful motion.

1X’s Redwood Vision-Language-Action (VLA) model, trained by its proprietary World Model (1XWM), integrates vision, language, and motor control, leveraging over 10,000 hours of real-world data to enable NEO to perform tasks with human-like adaptability.

Strategic Rationale The humanoid robotics market is a transformative opportunity, potentially surpassing digital AI by addressing the global physical labor crisis across a $30 trillion market. 1X’s home-first strategy, focusing on household tasks, unlocks rich, diverse data for its Redwood VLA and 1XWM, critical for advancing Artificial General Intelligence (AGI).

By emphasizing safety and affordability, 1X is also positioning itself as a frontrunner in consumer robotics, offering a distinct path to scale.

Since shifting from industrial to consumer applications, 1X has gained momentum. The company recently opened an 80,000 square foot headquarters in Palo Alto to consolidate U.S. operations and attract top-tier AI talent. Its flagship robot, NEO Gamma, now integrates Redwood, a vision-language transformer capable of handling real-world household tasks such as object retrieval and door navigation.

Public visibility and secondary market demand have both increased, signaling greater investor interest in 1X and its NEO platform. The company has also clearly communicated its ambition to evolve toward AGI-capable robotics.

Together, these developments indicate a strategic inflection point. This allocation allows the DAO to secure equity exposure ahead of a potential valuation re-rating and broader market recognition of 1X’s trajectory.

The Deal The DAO has secured access to an allocation of 253.39 common shares of 1X Technologies at a price of $1,250 per share, totaling $350,000 USD. The shares will be acquired via a single-layer SPV (Special Purpose Vehicle), facilitated by a licensed broker.

Fee Structure

1. Management Fee: A one-time 10.5% fee applied to the investment, paid to the independent SPV manager (not to any DAO member or internal unit). This covers legal setup, regulatory compliance, reporting, and ongoing administration.

2. Carry (Carried Interest): A 10% performance fee, also paid to the SPV manager, applied only to net profits upon exit. For example, if the DAO exits at $500,000, the original $350,000 is returned to the DAO, and 10% of the $150,000 profit ($15,000) is retained by the manager. No carry is applied if there is no profit.

Note: These fee structures are common for private secondary deals with limited access, especially in high-demand, late-stage companies where allocations are scarce and negotiated through exclusive channels.

Note on Share Class The DAO will be acquiring common shares of 1X Technologies (Norwegian HoldCo) through a single-layer SPV structured as a Delaware LLC. These are the same class of equity held by early investors and employees.

This structure is typical for secondary transactions and reflects the terms available in high-demand private markets.

Transaction Details -Allocation: $350,000 USDC

-Share Class: Common Stock

-Shares to Acquire: 253.39

-Price per Share: $1,250

-Execution Deadline: July 21

-Additional Transaction Costs: USDC–USD swap, off-ramping, and international wire transfer fees, expected to remain under $2,000 total

Potential Liquidity Events 1X Technologies’ strong execution and positioning in humanoid robotics create two plausible liquidity pathways:

1. Initial Public Offering (IPO): With increasing investor appetite for AI and robotics, and a current $1.5B valuation supported by early NEO deployments, 1X is well-positioned as an IPO candidate within the next 2–5 years.

2. Strategic Acquisition: Major tech companies pursuing embodied AI or humanoid platforms may target 1X for its data-rich home-first strategy and proprietary Redwood VLA architecture.

While no liquidity event is guaranteed, 1X’s traction, institutional backing, and differentiated approach improve the likelihood of a successful exit scenario.

Note: Limited secondary liquidity may become available after a 12-month holding period, depending on the company's performance and market conditions. Any potential exit or liquidation would require a DAO proposal and governance vote.

Key Risks & Considerations

-Execution Risk: Hardware scaling, AI deployment, and production reliability remain challenging, even with strong funding and partners.

-Competitive Landscape: 1X operates in a highly competitive segment alongside Figure AI, Tesla, Apptronik, and others.

-Regulatory & Public Adoption: Concerns about safety, labor impact, or regulation could delay adoption or create new compliance burdens.

Despite these risks, 1X’s approach to Embodied AI and its early lead in real-world humanoid deployment make it a strategically aligned allocation for the DAO.

Governance Execution If approved, the DAO’s Execution Engine will:

1. Finalize terms and compliance with the intermediary.

2. Coordinate legal and treasury operations for the transaction.

3. Document the full transaction flow with a transparent paper trail for auditability.

All treasury activity and asset positions will be tracked and documented for DAO-wide visibility and auditability on the DAO portal: dao.xmaquina.io