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On Tuesday, LG Electronics announced a significant strategic investment of $60 million in Silicon Valley startup Bear Robotics, aiming to fortify its presence in the rapidly expanding market of AI-based service robots. Through a new stock purchase agreement, LG Electronics will emerge as the largest single shareholder in the US-based startup, which specialises in AI-driven autonomous service robots.
LG Electronics clarified that this strategic investment is not geared towards immediate returns but rather towards enhancing its portfolio for sustained long-term growth.
Established in 2017 by former Google software engineer John Ha, Bear Robotics provides AI-powered indoor delivery robot services across the United States, South Korea, and Japan. The startup is recognized for its proficiency in service robotics software platformization, robot fleet management technology, and cloud-based control solutions.
This investment aligns with LG Electronics' overarching strategy to transition from a hardware-focused company to one with a stronger emphasis on software, a trajectory that began with its departure from the mobile phone manufacturing sector in 2021. This move also echoes LG Electronics CEO Cho Joo-wan's January declaration, which emphasised the exploration of investments or mergers and acquisitions within the service robotics domain.
LG Electronics has already made strides in this promising sector, operating a guide robot service at Incheon International Airport since 2017 and introducing delivery and disinfection solutions tailored for various commercial settings.
According to LG Electronics, the global service robotics market is projected to surge from $36.2 billion in 2021 to $103.3 billion by 2026.
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