Bone AI, a young defense robotics startup with roots in Seoul and a presence in Palo Alto, is positioning itself as a new player in Asia’s advanced defense landscape. The company is building what it describes as a unified “physical AI” platform that links artificial intelligence, robotics, and large scale manufacturing. Through this approach, Bone AI aims to serve defense and government customers that are increasingly demanding autonomous systems across air, land, and sea.
Market Context
South Korea’s established defense groups have built up order backlogs worth tens of billions of dollars as of late 2024, reflecting strong global demand for the country’s weapon systems. The government is stepping up investment in advanced capabilities and deepening defense cooperation with Europe, supported by initiatives such as the EU–South Korea Security and Defense Partnership. Growing exports of vehicles, artillery, and other equipment have helped make South Korea one of the leading arms suppliers to European NATO members.
Company Overview
Despite this industrial scale, the local defense tech startup ecosystem remains relatively underdeveloped, leaving room for new entrants like Bone AI. Founded in early 2024 by DK Lee, who previously co founded AI company MarqVision, Bone AI is focused on building a vertically integrated platform for autonomous systems. The startup develops unmanned aerial vehicles, unmanned ground vehicles, and unmanned surface vessels, initially concentrating on defense grade drones that can support missions such as logistics, wildfire monitoring, and anti drone operations.
Funding and Strategic Backing
Bone AI has secured a $12 million seed round led by venture firm Third Prime, with participation from South Korean conglomerate Kolon Group as a strategic investor. Kolon brings expertise in advanced materials and manufacturing, which aligns with Bone AI’s ambition to combine AI, robotics, and next generation production processes. Lee has also committed around $1.5 million of personal capital into the round, signaling a strong financial and operational commitment to the company’s trajectory.
Technology, M&A, and Revenue Progress
The company has moved quickly from formation to commercial traction, already generating seven figure revenue from government and defense contracts. In its first year of operation, Bone AI reports approximately $3 million in revenue, supported in part by a government backed end to end logistics program that will deploy its autonomous UAVs and UGVs. To accelerate its roadmap, the startup acquired South Korean drone maker D Makers and its intellectual property six months after launch, integrating that business with its in house AI division and exploring further acquisitions as part of a buy versus build strategy.
Ecosystem Positioning and Global Ambitions
Lee argues that AI and hardware have often evolved in separate silos, leaving a gap for companies that can serve as the connective layer between intelligent software and industrial scale production. Drawing on South Korea’s track record in sectors such as automotive, shipbuilding, electronics, and semiconductors, Bone AI wants to create a dedicated supply chain for physical AI beginning in its home market. The longer term plan is to expand that capability to the United States, Europe, and other allied countries, with the company positioning itself alongside a new generation of defense and dual use AI firms that include notable names in the United States, Europe, and Israel.
With its seed funding secured, industrial partners on board, and early contracts already in place, Bone AI is attempting to carve out a distinctive role in a defense market dominated by large incumbents. The startup’s mix of AI driven autonomy, hardware integration, and acquisition led growth is intended to shorten development cycles and bring mature products to market more quickly. As regional and global defense demand increases, the company will be tested on its ability to scale from an emerging player into a meaningful contributor to the broader physical AI ecosystem.