Consumer appliance and electronics company LG Electronics has announced a US$60m (£46.9m) investment in California-based startup Bear Robotics, a developer of AI–powered server robots.
The company’s flagship product is an autonomous mobile tray tower for serving food and drink in hospitality settings.
Upon completion of the deal, the South Korean company will hold more shares in Bear Robotics’ than any other single shareholder.
As opposed to a pursuit of short-term financial returns, LG’s strategic investment is aimed at bolstering its portfolio for long-term growth.
Despite difficulties in the past 12 months for robotics companies in the hospitality segment looking for investment, the boom in demand for AI-centric products is giving some organisations a boost in interest and funding opportunities.
The investment follows statements from LG CEO William Cho earlier this year that suggested LG’s interest in equity investments in robotics, especially those in the delivery and logistics market segments.
“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,” said Lee Sam-soo, chief strategy officer at LG Electronics.
“From a mid- to long-term perspective, we will seek to develop our robot business into a new growth engine, exploring various opportunities through the integration of cutting-edge technologies such as embodied AI and robotic manipulation.”
The company’s previous ventures into robotics include its development of guide robots back in 2017 for South Korea’s largest airport, Incheon International Airport.
