Bone AI Secures $12M

South Korean startup Bone AI has raised $12 million in seed funding to develop AI-powered defence robotics, positioning itself to compete with established Asian defence manufacturers. The company is focused on creating a 'physical AI' platform, integrating AI with hardware for autonomous drones, ground vehicles, and marine systems. Bone AI has already secured a seven-figure government contract and generated $3 million in revenue within its first year.

Bone AI's strategy involves acquiring hardware IP and production capabilities, demonstrated by its acquisition of drone company D-Makers. The company is targeting the underserved Asian defence-tech market, aiming to provide autonomous systems for logistics, wildfire detection and counter-drone missions. Bone AI's founder personally invested $1.5 million in the seed round, highlighting confidence in the company's mission to build a supply chain for physical AI in South Korea and beyond.

The funding will support autonomous R&D, flight testing, certification and manufacturing. Bone AI's early traction with government contracts indicates potential for repeat governmental orders and the successful deployment of its physical AI thesis. The company's approach combines Silicon Valley innovation with Korean manufacturing expertise to challenge the dominance of larger players in the defence sector.