Samsung to Expand Presence in AI-Powered Humanoid Robotics Space through Strategic Investment

Samsung Electronics plans to increase its stake in Rainbow Robotics, the leading Korean robot maker, by acquiring more than 267 billion won (approximately $180 million) and becoming the company’s largest shareholder. This move is part of Samsung’s strategy to expand its presence in the rapidly growing AI-powered humanoid robotics space.

According to a regulatory filing on Tuesday, Samsung Electronics will raise its stake in Rainbow Robotics from 14.7% to 35%. The deal is expected to be completed by February 17, pending government approval. This purchase builds upon an earlier investment made in January 2023, where Samsung acquired a 10.22% stake for approximately 59 billion won.

The current largest shareholder of Rainbow Robotics is Oh Jun-ho, one of the company’s founders, who holds a 17.37% stake. Following the proposed deal, his stake will be reduced to 7.78%. Other significant shareholders include Oh’s wife Yoon Hye-sun and their children, who own stakes in the company.

Upon completion of the transaction, Rainbow Robotics is expected to become a subsidiary of Samsung Electronics, with its financial results being consolidated into Samsung’s earnings. This partnership aims to accelerate the development of intelligent advanced humanoids by combining Samsung’s AI and software technology with Rainbow Robotics’ robotics expertise.

Rainbow Robotics will leverage Samsung’s AI capabilities to enhance the functionality of its collaborative robots, dual-arm mobile manipulator, and autonomous mobile robots for manufacturing and logistics automation tasks. The collaboration will enable these robots to learn from situational data and environmental variables, significantly improving their work capacity through AI algorithms.

Rainbow Robotics was founded in 2011 by a team from the Humanoid Robot Research Center at KAIST (Korea Advanced Institute of Science and Technology), South Korea’s leading science and technology university. The company’s history dates back to 2005 when it developed the country’s first two-legged walking robot, Hubo.

In recent years, other major Korean conglomerates have been actively expanding their robotics businesses. Hyundai Motor, led by billionaire Euisun Chung, acquired a controlling stake in Boston Dynamics from SoftBank Group in 2009 for approximately $1.1 billion. In October, Boston Dynamics announced a partnership with Toyota Research Institute to develop AI-powered humanoid robots.

In addition, Doosan Group, Korea’s oldest conglomerate, listed its collaborative robots unit Doosan Robotics last year and raised $312 million in the country’s largest IPO of that year.

By combining forces with Rainbow Robotics, Samsung Electronics is poised to take a significant step forward in the robotics space, further solidifying its position as one of Asia’s most influential technology companies.

Source: www.forbes.com