Why Is Richtech Robotics Stock Falling One Day After Announcing A Deal With Microsoft?

Richtech Robotics on Wednesday announced a private placement worth $38.7 million, selling 8,500,000 Class B common stock at market price.

• Earlier, the company announced a partnership with Microsoft to jointly work on agentic artificial intelligence applications in real-world robotic systems. 
• The private placement is expected to close around Jan. 29, 2026.
• The company plans to use the proceeds for working capital requirements, general corporate purposes, developing product candidates, and purchasing inventory, specifically for robotic hardware.

Richtech Robotics Inc. (RR) shares slipped more than 12% on Wednesday, paring earlier gains after the announcement of its partnership with Microsoft Corp. (MSFT) drove prices up in the prior session.

The Nevada-based service robots company on Wednesday announced a private placement of $38.7 million, selling 8,500,000 Class B common shares at the market price.

The deal is expected to close around Jan. 29, 2026, as per a statement from the company.

Richtech Robotics said it plans to use the net proceeds from the private placement for working capital, general corporate purposes, developing product candidates, and purchasing inventory, specifically for robotic hardware.

The Microsoft Partnership

Richtech Robotics announced a partnership with Microsoft on Tuesday to jointly work on agentic artificial intelligence applications in real-world robotic systems, sending its shares soaring after the deal was revealed.

Facilitated through Microsoft’s AI Co-Innovation Labs, the collaboration intends to improve Richtech’s ADAM robot with Azure AI’s technologies, aimed at boosting its perception, vision, reasoning, and interactions in physical environments.

The robotics company highlighted the use-case for these agentic AI capabilities in multiple real-world sectors, including logistics, hospitality, and manufacturing.

Earlier this month, the company’s COO Phil Zheng said Richtech Robotics isn’t aiming for full automation but selective workflow relief, noting that even robots handling just 10% of daily tasks can meaningfully free humans for higher-value work.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around RR shares remained in the ‘extremely bullish’ territory over the past day at the time of writing.

Meanwhile, message volumes were ‘extremely high.’ According to Stocktwits data from Wednesday morning, message volumes spiked by almost 83% in 24 hours.

One bullish user highlighted the fact that the private placement was not a discounted offering, noting that the investor likely did not cut a deal by buying at market price.

Another user said that while they didn’t necessarily like the offering, the stock was still cheap, and noted that early investors are winning.

RR stock has gained over 70% in the last year.

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