South Korea’s main protection giants have amassed roughly $69 billion so as backlogs as of late 2024, in response to media reviews. Seoul is additionally accelerating funding in superior weapons programs and increasing its protection ties, significantly with Europe. With the brand new EU–South Korea Safety and Defence Partnership in 2024 and rising exports of automobiles and artillery, the nation has grow to be the second-largest arms provider 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 power and its early-stage innovation.
Bone AI, a brand new startup primarily based in Seoul and Palo Alto, California, launched earlier this yr with an formidable 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 in the end goals to function all three kinds of programs, Bone is beginning with its defense-focused aerial drones, that are designed to streamline missions similar to logistics help, wildfire detection and anti-drone protection.
The corporate, based by DK Lee (who additionally co-founded MarqVision), has raised a $12 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 companion 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 yr 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 may deploy UAVs and UGVs powered by its autonomy stack.
When requested how an organization lower than a yr previous is already securing contracts and producing income, Lee instructed TechCrunch that Bone acquired a South Korean drone firm known as D-Makers, and its mental property (IP) simply six months after launch. Initially centered on AI fashions for robotics, Bone is now integrating its present 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 instructed TechCrunch. “That was essential to me as a result of I needed to indicate each buyers and my staff 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, but it surely additionally satisfied him that the following 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 beneath one roof.
Whereas getting ready his second firm, Lee noticed that AI and {hardware} have been advancing in silos.
“Nobody was constructing the connective tissue, the economic spine that permits clever machines to exist at scale. Even Nvidia, probably the most precious AI firm at present, depends on an unlimited ecosystem of fabrication and manufacturing companions throughout Asia and Europe,” he instructed TechCrunch.
Lee factors to South Korea’s monitor report of constructing international {hardware} manufacturing powerhouses like Hyundai, Samsung and LG. “This is the reason we should 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 develop that functionality to the U.S., Europe, and different allied nations.”
Anduril has grow to be a family title 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, basic companion at Third Prime, instructed TechCrunch. “As economies all over the world concentrate on 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 resolve.
South Korea has high-quality, cost-competitive {hardware} manufacturing throughout a number of sectors similar to heavy business, shipbuilding, automobiles and semiconductors.
“Many area of interest {hardware} gamers exist however haven’t acquired Bay Space VC funding; Bone has a robust ‘purchase versus construct technique’ to amass and combine these belongings, accelerating product maturity and industrial traction,” Kim mentioned.
