Bone AI Secures $12M to Compete with Asia’s Defense Leaders in AI Robotics
South Korea’s defense sector is witnessing a robust transformation, with major companies amassing approximately $69 billion in order backlogs by late 2024. Amid this backdrop, Bone AI, a startup with dual bases in Seoul and Palo Alto, has emerged with a groundbreaking vision to integrate AI technology across hardware and manufacturing, specifically targeting defense applications.
Focused primarily on government contracts, Bone AI is developing a new generation of autonomous vehicles, including aerial drones (UAVs), ground robots (UGVs), and marine vessels (USVs). The company is prioritizing aerial drones initially, which are designed to enhance operational efficiency in logistics, wildfire detection, and anti-drone defense functions. The startup has already secured a significant revenue stream, reporting $3 million in its first year, and clinching a seven-figure contract in the B2G sector. Additionally, it has been recognized in a South Korean government initiative for deploying UAVs and UGVs utilizing its innovative autonomy technology.
The founder, Lee, leverages his prior experience from MarqVision to pursue what he describes as the next frontier of AI—combining digital and physical realms. He actively engaged in the robotics community, seeking connections and insights to further develop Bone AI’s capabilities in an area that has seen limited startup activity despite South Korea’s strong manufacturing reputation.
Lee emphasizes that Bone AI is more than a mere defense technology firm; it aims to pioneer “physical AI.” The company aspires to converge advanced AI simulations, autonomy algorithms, embedded engineering, and large-scale manufacturing into a cohesive operation. By establishing a robust supply chain for Physical AI in South Korea, Bone AI plans to expand its operations into the U.S., Europe, and other allied nations.
As competitors like Anduril and Helsing dominate global markets, the potential for South Korea to cultivate its hardware-based AI innovations is promising. The country’s strengths in manufacturing across various sectors—ranging from heavy industry to semiconductors—position Bone AI as a significant player in this burgeoning field. The company plans to employ a “buy versus build” strategy to enhance product development and scale its operations, addressing the need for niche hardware solutions that have yet to attract substantial venture capital funding.
