South Korea’s main protection giants have amassed roughly $69 billion so as backlogs as of late 2024, according to media reports. Seoul is also accelerating funding in superior weapons methods and increasing its protection ties, notably with Europe. With the new EU-South Korea Security and Defence Partnership in 2024 and rising exports of automobiles and artillery, the nation has turn into the second-largest arms supplier to European NATO members.
But regardless of that big industrial footprint, remarkably few startups have emerged to match or problem the incumbents. The nation’s defense-tech startup scene continues to be nascent, exposing a large hole between Korea’s manufacturing energy and its early-stage innovation.
Bone AI, a brand new startup based mostly in Seoul and Palo Alto, California, launched earlier this 12 months with an bold plan to construct a totally unified AI platform that ties collectively software program, {hardware}, and manufacturing.
The corporate develops next-generation autonomous air (UAVs), floor (UGVs), and marine (USVs) automobiles for protection and authorities shoppers, focusing largely on B2G contracts. Whereas it finally goals to function all three kinds of methods, Bone is beginning with its defense-focused aerial drones, that are designed to streamline missions similar to logistics assist, wildfire detection, and anti-drone protection.
The corporate, based by DK Lee (who additionally co-founded MarqVision), has raised a $12 million seed spherical led by Third Prime with participation from Kolon Group, a South Korean strategic investor that has experience in growing superior supplies and manufacturing. Kolon is a perfect strategic associate for Bone, which operates throughout AI, robotics, and next-generation manufacturing, Lee mentioned in an unique interview with TechCrunch.
The startup is already producing income, touchdown a seven-figure B2G contract and pulling in $3 million in its first 12 months of operation, Lee famous. As well as, Bone has been chosen as a winner in a South Korean government-backed end-to-end logistics program that can deploy UAVs and UGVs powered by its autonomy stack.
When requested how an organization lower than a 12 months previous is already securing contracts and producing income, Lee advised TechCrunch that Bone acquired a South Korean drone firm referred to as D-Makers, and its mental property (IP), simply six months after launch. Initially targeted on AI fashions for robotics, Bone is now integrating its current AI division with the newly acquired firm, and extra acquisitions are on the horizon, he added.
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Lee personally dedicated greater than 10% of the spherical, roughly $1.5 million, he advised TechCrunch. “That was vital to me as a result of I wished to point out each buyers and my workforce that I’m absolutely invested, financially and emotionally, on this mission,” he mentioned.
Bone is Lee’s second enterprise. His expertise co-founding MarqVision gave him firsthand perception into constructing and scaling AI merchandise worldwide, however it additionally satisfied him that the subsequent frontier of AI isn’t simply digital; it’s bodily.
“After leaving MarqVision, I principally began from zero — going to robotics conferences like IEEE ICRA, cold-emailing the engineers behind Google RT-1/RT-2, and even strolling as much as Jim Keller, CEO of Tenstorrent, at a restaurant simply to introduce myself and seize a espresso later,” Lee mentioned.
Bone AI shouldn’t be pigeonholed as only a protection tech firm, the founder continued. With broader ambitions, Lee frames it as a “bodily AI” agency, bringing collectively superior AI simulation, autonomy algorithms, embedded engineering, {hardware} design, and large-scale manufacturing underneath one roof.
Whereas getting ready his second firm, Lee noticed that AI and {hardware} had been advancing in silos.
“Nobody was constructing the connective tissue, the economic spine that enables clever machines to exist at scale. Even Nvidia, essentially the most worthwhile AI firm at the moment, depends on an unlimited ecosystem of fabrication and manufacturing companions throughout Asia and Europe,” he advised TechCrunch.
Lee factors to South Korea’s observe report of constructing international {hardware} manufacturing powerhouses like Hyundai, Samsung, and LG. “This is the reason we must always see extra drone and small-robotics firms rising right here, and why Korea is absolutely able to supporting them,” the CEO mentioned. “Our mission at Bone is to construct the availability chain for bodily AI inside South Korea, after which broaden that functionality to the U.S., Europe, and different allied nations.”
Anduril has turn into a family identify within the U.S., boasting a valuation north of $30 billion, whereas in Europe, Helsing final raised funding at round $13 billion. Even in smaller markets like Israel, firms similar to Kela Applied sciences have achieved related recognition.
Asia has but to see the identical degree of adoption, Michael Kim, common associate at Third Prime, advised TechCrunch. “As economies world wide deal with reindustrialization, not simply the U.S., Bone sits on the intersection of sovereign AI, multipolarity, and reindustrialization,” he mentioned, highlighting each the corporate’s mission and the issue it goals to unravel.
South Korea has high-quality, cost-competitive {hardware} manufacturing throughout a number of sectors similar to heavy trade, shipbuilding, vehicles, and semiconductors.
“Many area of interest {hardware} gamers exist however haven’t acquired Bay Space VC funding; Bone has a powerful ‘purchase versus construct technique’ to accumulate and combine these belongings, accelerating product maturity and business traction,” Kim mentioned.
