The company joins the SBVA AI Fund and continues its efforts to Promote future companies through open innovation activities

SEOUL, South Korea, 19 August 2024 /PRNewswire/ — LG Electronics (LG) is investing heavily in startups specializing in artificial intelligence (AI) and deep tech. LG is committed 10 million USD as main limited partner in the newly founded 130 million US dollars “Alpha Intelligence Fund (AIF)” from SBVA.

SBVA will build a portfolio for AIF by selecting startups with high growth potential in AI, deep tech and robotics. The company aims to leverage its global networks and resources to support the growth and significant successes of these startups.

For over 20 years, SBVA has been investing in global startups, expanding its expertise in ICT technology and strengthening its international network. By participating in the SBVA fund, LG aims to share information on rapidly changing innovative technology trends and incorporate these global market changes into its management strategies.

With this investment, LG aims to expand its collaboration with innovative startups and continue its efforts to secure future technologies to ultimately achieve qualitative growth. The company plans to strengthen its network with leading global companies and startups, discover additional opportunities for strategic investments, and secure technological capabilities for future business.

LG intends to accelerate its transformation into a “Smart Life Solutions” company by securing innovative technologies for its key growth engines, including platform-based service businesses, B2B businesses and other new ventures. The company plans to continue its efforts to secure future core technologies and expand its business areas beyond the home to commercial spaces, mobility and more.

Previously, in July, LG acquired an 80 percent stake in Athom, a smart home platform company based in Enschede. Netherlandsand signed a contract to acquire the remaining 20 percent within the next three years. In March, LG invested 60 million USD in Bear Robotics – an AI-based autonomous service robot startup based in Redwood CitySilicon Valley, USA – through a new share purchase agreement to acquire an interest in Bear Robotics.

In addition, since 2021, LG has been holding annual competitions through LG NOVA – the company’s Silicon Valley-based innovation center – to discover and promote startups with innovative ideas and support their commercialization, thus opening up new business opportunities. LG NOVA focuses in particular on building sustainable growth and support systems for future innovative industries such as digital healthcare, cleantech and AI.

“By participating in the AIF, we want to secure AI capabilities through active open innovation activities and strengthen our position within the AI ​​value chain,” said Eugene YooVice President and Head of Open Innovation Task at LG. “We plan to discover capable startups and collaborate with them to explore future business opportunities.”

“We will continue to make investments that accelerate technological innovation, leveraging our differentiated technical expertise, global network and investment experience. We plan to maximize the growth potential of these companies by supporting the establishment of joint ventures with startups and major investors and promoting joint business projects,” said SBVA CEO JP Lee.

Meanwhile, SBVA, founded as SoftBank Ventures Asia under the SoftBank Group, was acquired last year by The Edgeof, an investment company led by Taizo SonChairman of the global investment firm Mistletoe, and became independent. SBVA manages assets totaling around 2 billion US dollars AUM and has offices in San Francisco, Israel, Singapore And Seoul. It invests in over 100 companies. SBVA plans to conduct a second closing within the year to increase the size of the AIF.

About LG Electronics, Inc.

LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000 employees. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – generate combined global sales of over 84 trillion KRW in 2023. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors to automotive components and solutions, and its premium brands LG SIGNATURE and the smart LG ThinQ are household names around the world. Visit www.LGnewsroom.com for the latest news.

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