LG Electronics is staking a bet in the AI game with a US$60 million investment in Bear Robotics, a tech start-up developing autonomous service robots.
Investment in the Silicon Valley firm was made to target longer-term growth over short-term gains, with the South Korean tech conglomerate looking to leverage its advancements in service robotics.
LG will become Bear Robotics’ largest shareholder once the deal is completed.
Bear Robotics specialises in AI-powered indoor delivery robots, robotic software, fleet management and cloud-based control software.
Its focus aligns with LG, which is transitioning its robot business from hardware to software-defined robotics.
Currently, the tech giant offers robot solutions in multiple commercial spaces and has a facility which is used to produce service robots.
Service robotics is expected to increase from US$36.2 billion in 2021 to US$103.3 billion in 2026, LG said.
Shares in the South Korean-listed company jumped 2.5% on Tuesday, helping lift the group after its market value dropped close to 15% in the last twelve months.