LG acquires majority of Bear Robotics to boost AI robots

LG Electronics has announced its acquisition of a majority stake in Bear Robotics, a Silicon Valley startup known for its AI-driven autonomous service robots, in an effort to enhance its robotics capabilities.

The decision was implemented after LG's board of directors opted to exercise a call option to secure an additional 30% stake in Bear Robotics on 22nd January. This follows LG's USD $60 million investment in March 2024, granting the company a 21% stake and a call option agreement for an additional 30%. With the completion of this transaction, LG will hold a controlling 51% stake in the startup, effectively making it a subsidiary.

This move is part of LG's strategy to integrate its commercial robot business, primarily focused on "LG CLOi Robots," with Bear Robotics. The key management team, including CEO John Ha, will remain at Bear Robotics to ensure business continuity and foster synergies within the commercial robot sector.

Bear Robotics, established in 2017, is distinguished for its AI-powered indoor delivery robots, operating in markets such as the United States, South Korea, and Japan. The company is recognised for its distributed multi-robot control, remote fleet management system, and AI-powered robot platforms.

LG plans to leverage Bear Robotics to expand in the commercial robot market while utilising its own AI and manufacturing expertise to reinforce the home and industrial robot businesses. The LG Home Appliance Solution Company will lead efforts in the home robot segment, focusing on delivering integrated experiences where robots can interact seamlessly with home appliances and services.

A prime example of this is the Self-driving AI Home Hub, project name Q9, expected to launch this year. The Q9 includes multimodal sensing abilities such as voice, sound, and image recognition along with autonomous driving technology, allowing it to adeptly navigate and interact within households. The Q9 will also feature a display to convey emotions and Microsoft's voice recognition technology, enabling intuitive user interaction.

In the industrial robotics sector, LG's Production engineering Research Institute is pioneering revenue growth by integrating AI and digital transformation into the "Autonomous Vertical Articulated Robot." This advanced robot uses sensors to perceive its environment and execute various tasks, enhancing automation and operational efficiency.

William Cho, CEO of LG, highlighted the strategic importance of this investment at CES 2025, citing that "Robots are a certain future," and noted the expansion plans into home robotics to achieve a "Zero-labor Home." This investment aims to create synergies across LG's entire robotics portfolio, enhancing AI-centric solutions and promoting a unified software platform for diverse robot applications.

Lee Sam-soo, Chief Strategy Officer at LG Electronics, stated, "This additional investment underscores our dedication to positioning robots as a pivotal growth engine for the company, reflecting our belief in their inevitable role in the future. We will persist in driving innovation across all sectors of robotics, encompassing commercial, industrial and home applications." This partnership with Bear Robotics is expected to bolster LG's robotics software capabilities and streamline development processes.

LG's advanced manufacturing and supply chain management skills are set to improve market responsiveness and operational efficiency within its robotics business. Additionally, nationwide distribution will be facilitated by its established B2B sales network, enabling the integration of commercial robots with various B2B solutions to deliver customised products for corporate clients' needs.