Bone AI raises $12M to challenge Asia’s defense giants with AI-powered robotics

Summary

South Korea’s major defense giants have amassed roughly $69 billion in order backlogs as of late 2024, according to media reports. Seoul is also accelerating investment in advanced weapons systems and expanding its defense ties, particularly with Europe. With the new EU–South Korea Security and Defence Partnership in 2024 and growing exports of vehicles and artillery, the country has become the second-largest arms supplier to European NATO members. Yet despite that enormous industrial footprint, remarkably few startups have emerged to match or challenge the incumbents. The country’s defense-tech startup scene is still nascent, exposing a wide gap between Korea’s manufacturing strength and its early-stage innovation. Bone AI, a new startup based in Seoul and Palo Alto, California, launched earlier this year with an ambitious plan to build a fully unified AI platform that ties together software, hardware, and manufacturing. The company develops next-generation autonomous air (UAVs), ground (UGVs) and marine (USVs) vehicles for defense and government clients, focusing largely on B2G contracts. While it ultimately aims to operate all three types of systems, Bone is starting with its defense-focused aerial drones, which are designed to streamline missions such as logistics support, wildfire detection and anti-drone defense. The company, founded by DK Lee (who also co-founded MarqVision), has raised a $12 seed round led by Third Prime with participation from Kolon Group, a South Korean strategic investor that has expertise in developing advanced materials and manufacturing. Kolon is an ideal strategic partner for Bone, which operates across AI, robotics and next-generation manufacturing, Lee said in an exclusive interview with TechCrunch. The startup is already generating revenue, landing a seven-figure B2G contract and pulling in $3 million in its first year of operation, Lee noted. In addition, Bone has been selected as a winner in a South Korean government-backed end-t...