Bone AI Secures $12M Funding to Advance Physical AI Robotics in South Korea and Beyond

Bone AI, a Seoul‑Palo Alto startup founded by former MarqVision co‑founder DK Lee, raised a $12 million seed round led by Third Prime with strategic investment from Kolon Group. The company is building a unified AI platform that combines software, hardware and manufacturing to create autonomous aerial, ground and marine systems for defense and government customers. Early contracts, including a seven‑figure B2G deal and participation in a Korean government logistics program, demonstrate rapid market traction. Bone AI’s acquisition of drone maker D‑Makers and its focus on a “physical AI” supply chain aim to position South Korea as a hub for next‑generation defense robotics.

Background: South Korea’s Defense Landscape

South Korea’s major defense manufacturers hold a massive order backlog, reflecting the country’s status as a leading arms supplier to European NATO members. Despite this industrial strength, the nation’s defense‑tech startup ecosystem remains nascent, leaving a gap between large‑scale manufacturing capabilities and early‑stage innovation.

Bone AI’s Mission and Offerings

Founded earlier this year by DK Lee—who previously co‑founded MarqVision—Bone AI operates out of Seoul and Palo Alto with the goal of creating a fully integrated AI platform that unites software, hardware and large‑scale manufacturing. The startup develops autonomous aerial (UAV), ground (UGV) and marine (USV) vehicles aimed at defense and government clients, initially focusing on aerial drones for logistics support, wildfire detection and anti‑drone defense.

Funding and Strategic Partnerships

Bone AI secured a $12 million seed round led by venture firm Third Prime, with participation from Kolon Group, a South Korean conglomerate specializing in advanced materials and manufacturing. Kolon serves as a strategic partner, aligning with Bone AI’s emphasis on AI, robotics and next‑generation manufacturing. Founder DK Lee contributed over 10 percent of the round, approximately $1.5 million, underscoring his personal commitment to the venture.

Early Traction and Growth

The company has already generated revenue, landing a seven‑figure B2G contract and reporting $3 million in its first year of operation. It was selected as a winner in a Korean government‑backed logistics program that will deploy its UAVs and UGVs. Within six months of launch, Bone AI acquired D‑Makers, a domestic drone company, and its intellectual property, accelerating product development and market entry.

Strategic Vision: Physical AI and Reindustrialization

Lee describes Bone AI as a “physical AI” firm that integrates AI simulation, autonomy algorithms, embedded engineering, hardware design and large‑scale manufacturing under one roof. He argues that intelligent machines require an industrial backbone, noting that even leading AI firms rely on extensive fabrication ecosystems. Leveraging South Korea’s established hardware manufacturing base—exemplified by companies such as Hyundai, Samsung and LG—Bone AI aims to build a supply chain for physical AI domestically before expanding to the United States, Europe and other allied nations.

Industry Context and Outlook

Comparisons are drawn to U.S. defense‑tech leader Anduril and European counterpart Helsing, highlighting a global trend toward sovereign AI capabilities. Third Prime’s Michael Kim emphasizes that reindustrialization and multipolarity make Bone AI’s positioning especially relevant. South Korea’s cost‑competitive manufacturing across heavy industry, shipbuilding, automotive and semiconductor sectors provides a fertile environment for niche hardware players, many of which have yet to receive Bay Area venture funding. Bone AI’s “buy versus build” strategy seeks to acquire and integrate these assets, accelerating product maturity and commercial traction.