LG Electronics Invests $60M in Bear Robotics
LG Electronics, the Korean electronics and appliance giant, has made a significant investment of $60 million in Bear Robotics, a California-based startup that specializes in artificial intelligence-powered server robots. These robots, known as Servi robots, are designed to replace waiters in restaurants and other venues. With this investment, LG Electronics becomes the largest shareholder in Bear Robotics.
This funding comes at a crucial time for Bear Robotics. The company’s last funding round in 2022 valued it at over $490 million. However, the past year has been challenging for startups in the robotics space. Despite this, the growing interest in artificial intelligence and advancements in the field are providing a boost to robotics players like Bear Robotics.
While the exact valuation of Bear Robotics after this investment is unclear, it is evident that LG Electronics sees potential in the company’s tray-on-wheels form factor. It remains to be seen what Bear Robotics plans to tackle next with its flagship Servi robots.
LG’s interest in equity investments in robotics specializing in delivery and logistics was hinted at by CEO William Cho at CES 2024 in January. The company’s investment in Bear Robotics is a testament to its commitment to exploring opportunities in this space.
After shutting down its struggling mobile business globally in April 2021, LG Electronics shifted its focus to other growth areas, including smart homes, connected devices, the Internet of Things (IoT), electric vehicle components, and robotics and artificial intelligence platforms. This investment in Bear Robotics aligns with LG’s strategy to develop its robot business into a new growth engine.
Lee Sam-soo, chief strategy officer at LG Electronics, stated, “As the service robot market enters a period of growth, this equity investment will significantly contribute to securing a ‘Winning competitive edge’ for the company.” LG aims to integrate cutting-edge technologies like Embodied AI and robotic manipulation to explore various opportunities in the robot business in the mid-to long-term.
It is worth noting that LG Electronics has been involved in the robotic business for some time. In 2017, the company deployed guide robots at South Korea’s largest airport, Incheon International Airport, showcasing its expertise in software and hardware development in robotics.
Bear Robotics was founded in 2017 by John Ha, a former Google software engineer turned restaurateur. Ha’s firsthand experience with the challenges of running a restaurant inspired him to develop serving robots. Since then, Bear Robotics has successfully deployed its indoor delivery robots in the U.S., South Korea, and Japan, helping restaurants streamline their operations and improve customer service.
John Ha believes that standardized open platforms are crucial for the activation of the robot market. He states, “Just as Android revolutionized the smartphone era, standardized open platforms are essential for the activation of the robot market.”
In addition to its investment in Bear Robotics, LG Electronics has been actively exploring collaborations with other technology companies. In a recent meeting with Meta founder Mark Zuckerberg, LG CEO discussed potential strategic collaborations on extended reality (XR) device development. LG has also set up an XR team as part of its organization reshuffle to accelerate the development of an XR device by 2025.
LG Electronics’ investment in Bear Robotics highlights the company’s commitment to innovation and its belief in the potential of AI-powered robots. As the service robot market continues to grow, LG aims to leverage its expertise and technologies to establish a strong presence in this space. With Bear Robotics’ tray-on-wheels form factor and LG’s support, the future looks bright for AI-powered server robots in restaurants and other venues.