LG Electronics makes game-changing $10m investment in AI startups

LG Electronics (LG) has committed USD 10 million as a key limited partner in SBVA‘s newly established USD 130 million Alpha Intelligence Fund (AIF). This move marks a significant investment by LG in startups focusing on artificial intelligence (AI), deep tech, and robotics. The Alpha Intelligence Fund aims to identify and support high-growth potential startups through a carefully curated portfolio.

Investment Strategy and Fund Details

SBVA, known for its extensive experience in investing in global startups, will leverage its global networks and expertise to nurture the AIF’s portfolio companies. The firm, with over 20 years of experience in ICT technology, is set to enhance the growth and achievements of these startups. SBVA’s investment approach will incorporate global market trends and innovations, reflecting these changes in LG’s management strategies.

By participating in the AIF, LG intends to expand its cooperation with innovative startups and secure future technologies. The company aims to strengthen its global network, discover strategic investment opportunities, and enhance its technological capabilities for future business ventures. LG’s investment is part of a broader strategy to accelerate its transformation into a “Smart Life Solutions” company. This includes focusing on platform-based services, B2B businesses, and exploring new ventures beyond traditional home technology.

Recent Acquisitions and Investments

In recent months, LG has made notable investments and acquisitions to bolster its technology portfolio. In July, LG acquired an 80 percent stake in Athom, a smart home platform company based in Enschede, Netherlands. The company also plans to acquire the remaining 20 percent over the next three years. Earlier in March, LG invested USD 60 million in Bear Robotics, an AI-based autonomous service robot startup headquartered in Redwood City, California. This investment was made through a stock acquisition agreement.

Additionally, LG’s innovation center, LG NOVA, has been actively supporting startups through annual contests since 2021. These contests aim to discover and nurture innovative ideas, focusing on digital healthcare, clean tech, and AI. LG NOVA is dedicated to fostering sustainable growth and building systems for future industries.

Statements from Executives

Eugene Yoo, Vice President and Leader of the Open Innovation Task at LG, emphasized the importance of the AIF investment, stating, “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.” Yoo highlighted LG’s plans to collaborate with startups to explore future business opportunities.

SBVA CEO JP Lee expressed confidence in the fund’s potential, saying, “We will continue to make investments that accelerate technological innovation, leveraging our differentiated technical expertise, global network, and investment experience. We plan to maximize the growth potential of these companies by supporting the establishment of joint ventures with startups and major investors, and by promoting collaborative business projects.”

About SBVA and Future Plans

SBVA, originally established as SoftBank Ventures Asia under the SoftBank Group, was acquired last year by The Edgeof, led by Taizo Son of Mistletoe. Now independent, SBVA manages approximately USD 2 billion in assets and operates offices in San Francisco, Israel, Singapore, and Seoul. The firm invests in over 100 companies and plans to conduct a second closing within the year to increase the size of the AIF.

LG’s investment in the Alpha Intelligence Fund underscores its commitment to advancing AI and deep tech. By partnering with SBVA, LG aims to stay at the forefront of technological innovation and secure strategic opportunities for future growth.