Bone AI Secures $12 Million to Revolutionize Asia’s Defense Sector with AI-Driven Robotics
In the rapidly evolving landscape of defense technology, South Korea’s major defense corporations have accumulated approximately $69 billion in order backlogs by the end of 2024. The nation is intensifying its investments in advanced weaponry and strengthening defense collaborations, notably with European partners. The establishment of the EU-South Korea Security and Defence Partnership in 2024, coupled with increased exports of military vehicles and artillery, has positioned South Korea as the second-largest arms supplier to European NATO members.
Despite this substantial industrial presence, the emergence of startups challenging these established defense giants has been minimal. This disparity highlights a significant gap between South Korea’s robust manufacturing capabilities and its nascent early-stage innovation ecosystem.
Enter Bone AI, a pioneering startup headquartered in Seoul and Palo Alto, California. Launched earlier this year, Bone AI is on a mission to develop a comprehensive AI platform that seamlessly integrates software, hardware, and manufacturing processes. The company’s focus is on creating next-generation autonomous vehicles—spanning aerial (UAVs), ground (UGVs), and marine (USVs) systems—for defense and governmental applications, primarily targeting business-to-government (B2G) contracts. While the ultimate goal encompasses all three vehicle types, Bone AI is initially concentrating on defense-oriented aerial drones designed to enhance operations such as logistics support, wildfire detection, and anti-drone defense mechanisms.
Founded by DK Lee, who previously co-founded MarqVision, Bone AI has successfully raised a $12 million seed funding round. This round was led by Third Prime, with participation from Kolon Group, a South Korean strategic investor renowned for its expertise in advanced materials and manufacturing. Lee emphasized that Kolon’s involvement is particularly strategic, given Bone AI’s operations at the intersection of AI, robotics, and next-generation manufacturing.
Remarkably, within its first year, Bone AI has already generated $3 million in revenue, securing a seven-figure B2G contract. Additionally, the company has been selected as a participant in a South Korean government-backed end-to-end logistics program, which will deploy UAVs and UGVs powered by Bone AI’s autonomous technology stack.
When questioned about how a startup less than a year old has achieved such rapid success, Lee revealed that Bone AI acquired D-Makers, a South Korean drone company, along with its intellectual property, just six months after its inception. Initially focused on developing AI models for robotics, Bone AI is now integrating its AI division with the newly acquired assets from D-Makers. Lee also hinted at plans for further acquisitions to accelerate the company’s growth trajectory.
Lee’s commitment to Bone AI’s mission is evident, as he personally invested over 10% of the seed round, approximately $1.5 million. He stated, That was important to me because I wanted to show both investors and my team that I’m fully invested, financially and emotionally, in this mission.
This venture marks Lee’s second entrepreneurial endeavor. His experience with MarqVision provided him with valuable insights into building and scaling AI products on a global scale. However, it also led him to recognize that the next frontier of AI extends beyond digital applications into the physical realm.
After leaving MarqVision, I basically started from zero—attending robotics conferences like IEEE ICRA, reaching out to engineers behind Google RT-1/RT-2, and even approaching Jim Keller, CEO of Tenstorrent, at a café just to introduce myself and arrange a meeting, Lee recounted.
Lee is keen to position Bone AI not merely as a defense tech company but as a physical AI firm. The company aims to unify advanced AI simulation, autonomy algorithms, embedded engineering, hardware design, and large-scale manufacturing under one cohesive umbrella.
During the formation of Bone AI, Lee observed that advancements in AI and hardware were occurring in isolation. No one was building the connective tissue, the industrial backbone that allows intelligent machines to exist at scale. Even Nvidia, the most valuable AI company today, relies on a vast ecosystem of fabrication and manufacturing partners across Asia and Europe, he noted.
Lee highlighted South Korea’s proven track record in establishing global hardware manufacturing powerhouses like Hyundai, Samsung, and LG. This is why we should see more drone and small-robotics companies emerging here, and why Korea is fully capable of supporting them, he asserted. Our mission at Bone is to build the supply chain for physical AI within South Korea, and then expand that capability to the U.S., Europe, and other allied countries.
The global defense tech landscape has seen significant valuations, with U.S.-based Anduril reaching over $30 billion and Europe’s Helsing valued at around $13 billion. Even in smaller markets like Israel, companies such as Kela Technologies have gained recognition. However, Asia has yet to witness similar levels of adoption.
Michael Kim, general partner at Third Prime, commented, As economies around the world focus on reindustrialization, not just the U.S., Bone sits at the intersection of sovereign AI, multipolarity, and reindustrialization, underscoring both the company’s mission and the challenges it aims to address.
South Korea boasts high-quality, cost-competitive hardware manufacturing across various sectors, including heavy industry, shipbuilding, automotive, and semiconductors. Many niche hardware players exist but haven’t received Bay Area VC funding; Bone has a strong ‘buy versus build strategy’ to acquire and integrate these assets, accelerating product maturity and commercial traction, Kim added.
