LG Electronics (LG) is making significant investments in startups specialising in artificial intelligence (AI) and deep tech.
LG has committed $US10 million as a key limited partner in the newly established $US130 million "Alpha Intelligence Fund (AIF)" by SBVA.
SBVA will curate a portfolio for AIF by selecting startups with high growth potential in AI, deep tech and robotics. The firm aims to leverage its global networks and resources to support the growth and meaningful achievements of these startups.
For over 20 years, SBVA has been investing in global startups. By participating in the SBVA fund, LG plans to engage in the sharing of information on rapidly changing innovative technology trends and reflect these global market changes in its management strategies.
Through this investment, LG aims to expand cooperation with innovative startups and continue efforts to secure future technologies, ultimately seeking qualitative growth.
LG intends to accelerate its transformation into a "Smart Life Solutions" company by securing innovative technologies for its key growth engines, including platform-based service businesses, B2B businesses and other new ventures.
Just last month LG acquired an 80 per cent stake in Athom, a smart home platform company headquartered in Enschede, Netherlands, and signed a contract to acquire the remaining 20 per cent within the next three years.
In March, LG invested $US60 million in Bear Robotics – an AI-based autonomous service robot startup headquartered in Redwood City, Silicon Valley, USA – through a new stock acquisition agreement to acquire a stake in Bear Robotics.
"By participating in the AIF, we aim to secure AI capabilities through active open innovation activities and strengthen our position within the AI value chain," according to Eugene Yoo, vice president and leader of the Open Innovation Task at LG.
SBVA manages assets totalling approximately $US2 billion and has offices in San Francisco, Israel, Singapore and Seoul.