Key Points:
- LG Electronics invests $60 million in Bear Robotics, becoming the Silicon Valley startup’s largest single shareholder.
- The investment aligns with LG’s strategy for long-term growth and transitioning from a hardware-centric to a software-oriented company.
- Bear Robotics, founded in 2017, specializes in AI-driven indoor delivery robot services, operating in the United States, South Korea, and Japan.
- LG will leverage Bear Robotics’ expertise in platforming service robotics software, robot fleet management, and cloud-based control solutions.
South Korean multinational LG Electronics Inc. has announced a strategic investment of $60 million in Bear Robotics, a Silicon Valley-based startup specializing in artificial intelligence (AI)-driven service robots. Through this investment, LG Electronics will become the largest single shareholder in Bear Robotics, emphasizing a focus on long-term growth rather than seeking short-term returns.
The stock purchase agreement reflects LG’s commitment to strengthening its portfolio in the growing market of AI-based service robots. Bear Robotics, founded in 2017 by former Google software engineer John Ha, is recognized for its expertise in AI-powered indoor delivery robot services, operating in the United States, South Korea, and Japan.
LG Electronics aims to leverage Bear Robotics’ capabilities in platforming service robotics software, robot fleet management technology, and cloud-based control solutions. The investment aligns with LG’s broader strategy to transition from a hardware-centric to a software-oriented company following its exit from the mobile phone manufacturing business in 2021.
The move is part of LG Electronics CEO Cho Joo-wan’s strategy outlined in January, which emphasizes exploring investments or mergers and acquisitions within the service robotics market. LG has already made strides in this sector, operating a guide robot service at Incheon International Airport since 2017 and introducing delivery and disinfection solutions for various commercial settings.
According to LG Electronics, the global service robotics market is poised for significant growth, projected to increase from $36.2 billion in 2021 to $103.3 billion by 2026. LG’s strategic investment in Bear Robotics positions LG to capitalize on the expanding market and reinforces its commitment to innovation in AI-driven technologies.
