LG Electronics is poised to substantially increase its stake in start-ups specialising in artificial intelligence (AI) and deep technologies. The company has announced a US$10 million investment in the newly inaugurated “Alpha Intelligence Fund (AIF)”, which has amassed a total of US$130 million in capital, managed by SBVA.
SBVA is set to craft a diverse portfolio for AIF by selecting start-ups with substantial growth potential in the fields of AI, deep technology, and robotics. By leveraging its extensive global networks and resources, SBVA aims to aid these start-ups in reaching significant milestones.
LG leverages global tech insights for strategic growth
With a history spanning over two decades, SBVA has become a key player in the global start-up ecosystem, with a sharpened focus on ICT technology and an expanded international network. LG's investment in the AIF is designed to gain insights into rapidly evolving technology trends and to integrate this knowledge into its strategic management processes.
This investment reflects LG's broader strategy to foster collaboration with innovative start-ups and to secure advanced technologies for its future growth. The company aims to extend its networking capabilities with leading global companies and start-ups, uncover further opportunities for strategic investments, and enhance its technological assets to prepare for upcoming business ventures.
LG envisions a future as a “Smart Life Solutions” provider
LG's involvement in the AIF is a critical move towards its transformation into a “Smart Life Solutions” provider, focusing on pivotal growth engines such as platform-based service enterprises, B2B initiatives, and other new enterprises. The company is dedicated to advancing its technology base to broaden its business scope beyond traditional home applications to include business spaces, mobility, and beyond.
In recent strategic developments, LG secured an 80% stake in Athom, a Dutch smart home platform, in July and invested US$60 million in Bear Robotics, an AI-based service robot company based in Redwood City, California, in March. Additionally, through its innovation centre LG NOVA in Silicon Valley, LG has been proactive in identifying and nurturing start-ups with innovative ideas since 2021. LG NOVA focuses on promoting sustainable growth in future-oriented sectors like digital healthcare, clean tech, and AI.
Eugene Yoo, vice president and leader of the Open Innovation Task at LG, underscored the company's strategic initiatives, 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. We plan to discover and collaborate with capable start-ups to explore future business opportunities.”
JP Lee, CEO of SBVA, also highlighted their continuous commitment to technological advancement through targeted investments. “We will continue to make investments that accelerate technological innovation, leveraging our differentiated technical expertise, global network and investment experience. We plan to maximise the growth potential of these companies by supporting the establishment of joint ventures with start-ups and major investors, and by promoting collaborative business projects,” Lee noted.
SBVA, initially known as SoftBank Ventures Asia and part of the SoftBank Group, was acquired last year by The Edgeof, becoming an independent entity under the leadership of Taizo Son. It manages assets worth approximately US$2 billion and operates offices in San Francisco, Israel, Singapore, and Seoul, investing in over 100 companies. SBVA plans a second closing of the AIF within the year to expand the fund's capacity.
