BOT-07: Strategic Allocation in 1X Tech

TLDR A proposal to allocate 800,000 USDC from the DAO’s treasury to acquire direct common shares in 1X Technologies through its Norwegian holding company, 1X Holding AS.

This follows BOT-02, a previously approved proposal that could not be executed in time due to the tight timeline and high demand for the deal, which outpaced the DAO’s governance process. The newly approved ROFR now gives the DAO a renewed opportunity to gain exposure to 1X at a pivotal moment.

Through a recently approved ROFR, the DAO can acquire shares from one of 1X’s early investors at a $4.55B valuation, a compelling entry point relative to the company’s rumored $9B pre-money valuation for its upcoming primary round. Recent secondary offerings have already priced 1X shares closer to $10B, highlighting the strategic value of this allocation.

With NEO Gamma pre-orders now live and gaining global attention, 1X is entering a new phase of commercialization. The DAO has been tracking the company for over a year, and our thesis is now materializing.

This investment comes as 1X launches pre-sales for NEO Gamma and prepares for a $1B fundraise at a $9B pre-money valuation. At an entry price of approximately $5B valuation, this represents a premium from the previous round but a significant discount to the anticipated next round, aligning with the DAO's vision of building a high-growth portfolio in humanoid robotics and Embodied AI.

Executive Summary 1X Technologies is rapidly advancing humanoid robotics with NEO Gamma now entering pre-sale phase, marking a critical transition from R&D to commercial deployment. The company's proprietary Redwood Vision-Language-Action (VLA) model, powered by the 1X World Model (1XWM), continues to evolve through real-world data collection in home environments. Operating from its expanded Palo Alto headquarters, 1X maintains its ambitious AGI pursuit under AI Chief Eric Jang's leadership, with strategic backing from NVIDIA deepening the company's technological capabilities.

Following its January 2024 Series B round that raised $100 million at a $1.5 billion post-money valuation, led by EQT Ventures and backed by NVIDIA, SoftBank, Samsung NEXT, and Jeff Bezos, 1X is now preparing for a significant Series C round at a rumored $9B pre-money valuation. The launch of NEO Gamma pre-sales represents a major commercial milestone, validating the market readiness of 1X's home-first robotics strategy and positioning the company as a leader in the emerging consumer 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.

The company develops safe, affordable humanoid robots, with its flagship NEO designed for household tasks including cleaning, organization, caregiving, and companionship. Future applications extend to hospitality, logistics, and eldercare sectors. NEO's tendon-driven, bio-inspired design ensures intrinsic safety through compliant actuation, while its proprietary Revo1 servo motor delivers 5.5x the torque-to-weight ratio of leading motors, using only 20% of the copper and magnets required by conventional designs.

1X's Redwood Vision-Language-Action (VLA) model, trained by its proprietary World Model (1XWM), integrates vision, language understanding, and motor control. Leveraging over 10,000 hours of real-world operational data, Redwood enables NEO to perform complex household tasks with human-like adaptability and contextual understanding.

Progress & Market Momentum NEO Gamma Pre-Sale Launch: In a significant commercial milestone, 1X Technologies has launched pre-sales for NEO Gamma, its consumer-ready humanoid robot. This transition from controlled beta deployments to open pre-sales signals market validation, production readiness, early revenue generation, and accelerated data collection for Redwood VLA training. The pre-sale phase allows 1X to build a qualified customer pipeline while continuing to refine NEO's capabilities based on early adopter feedback.

Expanded Operations: 1X's 80,000 square foot Palo Alto headquarters consolidation has enabled accelerated development cycles, enhanced recruitment of top-tier AI/ML and robotics engineering talent, improved integration between hardware and AI development, and stronger ecosystem presence in Silicon Valley's robotics community.

Upcoming Series C: 1X is actively preparing for a significant funding round at a rumored $9B pre-money valuation, a 6x step-up from its previous $1.5B Series B. This anticipated revaluation reflects the company’s rapid commercial progress, technological maturity, and growing market momentum in the humanoid robotics space. Given 1X’s strong execution track record and heightened investor interest in humanoid robotics, the round is widely expected to close successfully in the coming months.

Strategic Rationale The humanoid robotics market represents a transformative opportunity, potentially surpassing the impact of digital AI by addressing the global physical labor crisis across an estimated $30 trillion addressable market. 1X’s home-first strategy enables the collection of rich, diverse real-world data, which fuels its Redwood VLA and proprietary 1XWM, critical ingredients in the pursuit of AGI in embodied systems.

Valuation Opportunity This allocation, at an approximate $4.55B valuation, offers a strategically timed entry point that balances near-term risk with long-term upside:

-3.3x step-up from Series B ($1.5B): Reflects meaningful traction, including the launch of NEO Gamma pre-orders, expanded operations, and increased market visibility.

-Positioned ahead of Series C ($9B pre-money expected): Offers potential for substantial value appreciation if the anticipated round materializes as expected.

-Risk-adjusted pricing: Reflects 1X’s strong execution while allowing room for timing and valuation variability as the market evolves.

Commercial Inflection Point The launch of NEO Gamma pre-orders marks 1X’s transition from R&D to early commercialization. This shift is a critical de-risking milestone, validating both the maturity of its technology and real market demand for its humanoid platform.

Direct Cap Table Access This deal grants the DAO direct common equity in 1X Holding AS. This structure improves on the previous SPV model proposed in BOT-02 by reducing fees, providing full shareholder rights, and improving long-term exit optionality.

Competitive Advantages 1X holds a strong lead through its real-world data advantage from home deployments, a safety-focused tendon-driven design, and cost-efficient Revo1 motors that deliver high performance. Its Redwood VLA is purpose-built for embodied AGI, and its partnership with NVIDIA enhances AI infrastructure and compute capacity.

The Deal The DAO has secured access to direct common shares in 1X Holding AS, the Norwegian holding company of 1X Technologies Inc. The shares will be acquired through a direct transfer from a Norwegian seed investor who participated in the company’s first funding round.

Transaction Details: -Allocation: 800,000 USDC -Share Class: Common Stock (direct to cap table) -Shares to Acquire: 200 shares -Price per Share: $4,000 USD -Implied Valuation: ~$4.55B -Investment Vehicle: Direct purchase (no SPV)

Fee Structure: -Management Fees: None -Carry: None -Broker Fee: None (covered by the seller) -Additional Transaction Costs: USDC–USD swap, off-ramping, and international wire fees, estimated under $3,500 total

Potential Liquidity Events 1X Technologies' strong execution momentum, NEO Gamma commercial launch, and upcoming $1B fundraise improve the probability and timeline for liquidity events:

Near-Term (12-36 months): Secondary market liquidity may emerge as 1X's profile grows post-Series C. Commercial traction could attract strategic partnerships creating partial liquidity opportunities.

Medium-Term (2-5 years): Successful NEO deployments and revenue traction position 1X for continued funding rounds, potential strategic acquisition by major technology companies pursuing embodied AI (e.g., Apple, Google, Microsoft, Amazon), or IPO path with strong unit economics and clear profitability trajectory.

Any exit or liquidation decision would require a DAO governance proposal and community vote, ensuring transparent decision-making aligned with DAO interests.

Key Risks & Considerations Execution Risks: Hardware scaling presents supply chain and quality control challenges. Real-world AI deployment may reveal edge cases requiring significant refinement. Consumer adoption involves trust, privacy concerns, and behavioral hurdles.

Market Risks: 1X operates in an increasingly crowded market alongside Figure AI (backed by OpenAI, Microsoft, NVIDIA), Tesla (Optimus), Apptronik, Boston Dynamics, and well-funded Chinese competitors. Consumer robotics adoption may take longer than anticipated, extending cash burn.

Regulatory & Operational Risks: Safety regulations, data privacy requirements, or labor protections could create compliance burdens. Reaching profitability may require additional funding rounds that could dilute existing shareholders.

Investment-Specific Risks: As a private investment, capital will be locked until a liquidity event occurs (potentially 5+ years). Future funding rounds could occur at lower valuations in adverse scenarios.

Valuation Risk: While we are confident the $9B Series C will close, any delays, reduced size, or lower valuation would impact our expected value creation. The $5B entry price assumes successful execution of 1X's commercial roadmap.

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

1. Finalize agreements 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

– The Northstar Council