LG Electronics (LG) is strategically bolstering its presence in the burgeoning field of service robotics through a significant investment in Bear Robotics, a prominent Silicon Valley startup renowned for its AI-driven autonomous service robots.
The investment, totaling USD 60 million, reflects LG’s commitment to long-term growth rather than immediate returns. Following the execution of a stock purchase agreement, LG will emerge as the largest shareholder in Bear Robotics.
At CES 2024, LG’s CEO William Cho highlighted the company’s interest in equity investments within the service robotics market, emphasizing areas like delivery and logistics.
Founded in 2017 by CEO John Ha, a former Google Senior Software Engineer, Bear Robotics has garnered acclaim for its AI-powered indoor delivery robots serving markets in the United States, South Korea, and Japan. The company’s expertise in platformizing service robotics software and cloud-based control solutions has attracted attention.
LG’s investment aligns with its transition towards Software-defined Robotics (SDR), aiming to develop scalable service robots on an open architecture software platform. This move emphasizes the importance of standardizing AI-based autonomous robot platforms for future growth.
Drawing on its extensive experience in deploying robot solutions across various commercial spaces, LG aims to enhance operational efficiency and foster synergies by combining Bear Robotics’ R&D capabilities with its own strengths.
The investment underscores LG’s strategic reallocation towards high-growth sectors, with the service robotics market poised for rapid expansion driven by technological advancements.
LG’s Future Vision 2030 aims to position the company as a Smart Life Solution Company, seamlessly connecting customer experiences across domains. The investment in Bear Robotics aligns with this vision, contributing to LG’s goal of achieving sustainable growth and a competitive edge in the evolving service robot market.
Lee Sam-soo, Chief Strategy Officer of LG Electronics, emphasizes the investment’s significance in securing a competitive edge and positioning the robot business as a new growth engine, leveraging cutting-edge technologies like Embodied AI and robotic manipulation.
