Samsung, NVIDIA invest $35M in robotics start-up Skild AI
What's the story
Samsung Electronics and NVIDIA Corporation have made minority investments in Skild AI Inc., a US-based robotics start-up.
The deal is part of Skild's Series B funding round, which is led by a $100 million investment from Japan's SoftBank Group Corp.
The funding will value the company at around $4.5 billion.
Samsung has invested $10 million, while NVIDIA has contributed $25 million to the round, according to Bloomberg.
Investment strategy
Samsung wants to stay competitive with other South Korean firms
Samsung sees its investment in Skild as a way to keep an eye on the start-up and its talent without making a big commitment.
The tech giant wants to stay competitive with other South Korean conglomerates like LG, Hanwha, and Mirae Asset, which have also invested between $5 million and $10 million in Skild.
Tech evolution
NVIDIA has been promoting the concept of 'physical AI'
NVIDIA has been promoting the concept of "physical AI," or robots and self-driving cars, as a major future revenue driver as the technology matures.
The company has hardware, software, and services to accelerate the development of autonomous robots.
The investment in Skild is part of NVIDIA's broader strategy to dominate the robotics space.
Market trend
Robotics is fast becoming a major growth area
Robotics is fast becoming a major growth area for global tech companies.
Apple, Meta Platforms, Amazon, and Google's parent company, Alphabet, are all investing heavily in the field.
Separately, Tesla has also been preparing to launch its Optimus robot.
A few months ago, Samsung made a small investment in Physical Intelligence, another start-up developing robotics algorithms.
Meanwhile, NVIDIA has backed firms such as Figure AI and Serve Robotics.
Expansion goals
Samsung has bigger plans in the robotics space
Samsung already sells robotic vacuum cleaners but has bigger plans, including humanoid robots and other household appliances.
Later this year, in partnership with Google, it will launch Ballie, a soccer-ball-sized machine that can project videos on walls.
Samsung is also the largest shareholder of Rainbow Robotics, a company that makes humanoids and is central to its work in this field.