LG Electronics Acquires Majority Stake in Bear Robotics - $600M Deal

LG Electronics Expands Robotics Investment with Bear Robotics Acquisition

LG Electronics is strategically focusing on robotics as a key area for future expansion. The South Korean technology firm announced on Friday an agreement to increase its ownership in Bear Robotics, a California-based company specializing in AI-powered service robots for the restaurant industry.

This transaction will result in LG holding a majority stake of 51% in Bear Robotics, effectively making the startup a subsidiary. While LG has not disclosed the financial details of this latest investment, reports from Korean news sources suggest a value of approximately $180 million.

Bear Robotics' Expertise and Integration with LG

Bear Robotics has established a reputation for its advanced artificial intelligence capabilities, particularly in the remote management of robot fleets. LG intends to integrate Bear’s technology with its existing commercial robot division, known as “LG CLOi Robots.”

This integration is expected to strengthen LG’s position in both the home and industrial robotics markets. The company is actively developing a comprehensive software platform designed to support robots across commercial, industrial, and residential applications, leveraging Bear’s technological advancements.

Investment Timeline and Valuation

This move follows a previous investment of $60 million in Bear Robotics made in March 2024, which already established LG as the startup’s largest shareholder. Prior funding rounds in 2022 had valued Bear Robotics at over $490 million, according to PitchBook data.

The current investment suggests a valuation of $600 million for Bear Robotics, if the reported $180 million figure proves accurate. The precise financial terms will be revealed upon the completion of the deal.

Leadership and Future Synergies

John Ha, the CEO and founder of Bear Robotics, along with the existing management team, will remain in their positions. They will continue to collaborate with LG’s robotics unit to foster synergy and drive innovation.

Ha, a former software engineer at Google and experienced restaurateur, founded Bear Robotics in 2017. His motivation stemmed from firsthand experience with the operational challenges faced by restaurants, leading to the development of automated serving robots.

LG's Strategic Vision for Robotics

Lee Sam-soo, Chief Strategy Officer at LG Electronics, stated that this increased investment demonstrates the company’s commitment to establishing robotics as a crucial driver of growth. He emphasized the belief that robots will play an increasingly significant role in the future.

LG plans to continue innovating across all segments of the robotics industry, including commercial, industrial, and home applications. The company showcased its robotics initiatives at CES 2025, highlighting the potential for robots to expand beyond traditional sectors like hospitality and logistics.

Long-Term Robotics Development

LG’s involvement in robotics extends back over a decade, with ongoing research and development of both robot software and hardware. Both South Korea and Japan have been early adopters of robotics technology, and LG has been at the forefront of this trend.

In 2017, LG deployed guide robots at Incheon International Airport, South Korea’s largest airport, demonstrating its early commitment to real-world robotics applications. Bear Robotics’ robots currently operate in the United States, South Korea, and Japan, assisting with food delivery in restaurants.

LG's Robotics Initiatives: Home and Industry

LG maintains a significant presence in the robotics market through its LG Home Appliance Solution Division. These robots are specifically engineered to integrate seamlessly with household appliances and various domestic environments.

A notable development is the Q9, a self-driving AI home hub slated for release in the coming months. This innovative device incorporates autonomous navigation capabilities and is equipped to perceive voices, ambient sounds, and visual data.

The Q9 leverages Microsoft’s advanced voice recognition and synthesis technologies, enabling users to engage in fluid and intuitive conversations.

Industrial Automation with LG Robots

Beyond the home, LG also produces industrial robots. The “Autonomous Vertical Articulated Robot” utilizes sensor technology to achieve independent navigation, movement, and task execution via its robotic arm.

This allows for increased efficiency and precision in industrial settings.

Competitive Landscape

Samsung, a key competitor to LG in the electronics industry, recently announced plans to launch its own home robot during the first six months of this year.

This move underscores the growing importance of the home robotics sector.

• Key Takeaway: LG is actively developing both home and industrial robotic solutions.
• Future Outlook: The release of the Q9 and Samsung’s upcoming home robot signal increased competition in the market.

The development of these technologies highlights the increasing integration of AI and robotics into everyday life.