South Korea’s main protection giants have amassed roughly $69 billion so as backlogs as of late 2024, based on media experiences. Seoul is additionally accelerating funding in superior weapons methods 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 turn out to be the second-largest arms provider to European NATO members.

But regardless of that giant 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 completely 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 forms of methods, Bone is beginning with its defense-focused aerial drones, that are designed to streamline missions akin to logistics assist, 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 creating superior supplies and manufacturing. Kolon is a perfect strategic companion for Bone, which operates throughout AI, robotics, and next-generation manufacturing, Lee stated 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When requested how an organization lower than a 12 months outdated is already securing contracts and producing income, Lee informed TechCrunch that Bone acquired a South Korean drone firm referred to as D-Makers, and its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 centered 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.

Lee personally dedicated greater than 10% of the spherical, roughly $1.5 million, he informed TechCrunch. “That was vital to me as a result of I needed to indicate each traders and my staff that I’m totally invested, financially and emotionally, on this mission,” he stated.

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 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 stated.

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 making ready his second firm, Lee noticed that AI and {hardware} had been advancing in silos.

“Nobody was constructing the connective tissue, the commercial spine that permits clever machines to exist at scale. Even Nvidia, essentially the most helpful AI firm right this moment, depends on an enormous ecosystem of fabrication and manufacturing companions throughout Asia and Europe,” he informed TechCrunch.

Lee factors to South Korea’s observe report of constructing international {hardware} manufacturing powerhouses like Hyundai, Samsung, and LG. “That is why we should always see extra drone and small-robotics firms rising right here, and why Korea is totally able to supporting them,” the CEO stated. “Our mission at Bone is to construct the availability chain for bodily AI inside South Korea, after which increase that functionality to the U.S., Europe, and different allied nations.”

Anduril has turn out 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 akin to Kela Applied sciences have achieved comparable recognition.

Asia has but to see the identical degree of adoption, Michael Kim, normal companion at Third Prime, informed TechCrunch. “As economies world wide give attention to reindustrialization, not simply the U.S., Bone sits on the intersection of sovereign AI, multipolarity, and reindustrialization,” he stated, 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 akin to heavy business, shipbuilding, vehicles, 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 accumulate and combine these belongings, accelerating product maturity and industrial traction,” Kim stated.