A look at LG’s Investment in AI and Deep Tech Startups

LG has announced a US$10m investment to become a key partner in the newly established SBVA, which focuses on startups specialising in AI and deep tech.

SBVA, established as a venture capitalist arm of SoftBank, will create the US$130m Alpha Intelligence Fund (AIF) portfolio by selecting startups with high growth potential in AI, deep tech and robotics. 

LG’s aim is to leverage its global networks and resources to support the growth and achievements of these startups, engaging in the sharing of information on rapidly changing innovative technology trends and reflect these global market changes in its management strategies.

“By participating in the AIF, we aim to secure AI capabilities through active open innovation activities and strengthen our position within the AI value chain,” said Eugene Yoo, Vice President and Leader of the Open Innovation Task at LG.  

Why is LG investing in deep tech?

Deep tech refers to technology that is based on tangible engineering innovation or scientific advances and discoveries. 

It often requires significant research and development and is characterised by its potential to create substantial societal impact and address large-scale challenges. LG's investment in deep tech is driven by several strategic objectives.

Firstly, LG aims to secure future technologies that can serve as key growth engines for the company. By investing in deep tech startups, LG can gain access to cutting-edge technologies that are crucial for its platform-based service businesses, B2B ventures, and other new areas beyond traditional home appliances. 

“We plan to discover and collaborate with capable startups to explore future business opportunities,” explains Eugene. 

Secondly, deep tech has the potential to drive significant innovation across various industries. By investing in these technologies, LG can explore and expand its business areas into new domains such as mobility and business spaces. 

This expansion allows LG to integrate deep tech into its offerings, transforming itself into a "Smart Life Solutions" company. The integration of smart home platforms and AI-based services enhances consumer experiences and positions LG as a leader in the evolving tech landscape.

Deep tech has significantly advanced AI, leading to innovations that transform various industries. Key developments include sophisticated machine learning models, particularly deep learning, which enhance capabilities in healthcare, by helping automate administrative tasks, improves diagnostic accuracy, and personalises treatment recommendations. Through its innovation centre, LG NOVA, the company is focusing on digital healthcare.

“We will continue to make investments that accelerate technological innovation, leveraging our differentiated technical expertise, global network and investment experience,” said SBVA CEO JP Lee.

Deep tech's edge

Deep tech can lead to transformative changes across industries, enabling advanced AI solutions that automate processes, enhance decision-making, and improve efficiency. 

Robotics, another critical aspect of deep tech, can revolutionise industries by providing autonomous solutions for manufacturing, service, and logistics. 

Additionally, deep tech can drive the development of sustainable technologies, addressing global challenges such as climate change and resource scarcity.

IoT applications, for instance, is a technological innovation that is largely being pushed forward by deep tech, and it's an industry that LG is taking an active interest in.

LG's investment in deep tech is a strategic move to position itself at the forefront of technological innovation. By collaborating with startups and leveraging its global network, LG aims to secure a competitive advantage by getting first access to the cutting edge technological breakthroughs it can then add to its portfolio of products, as well as the creation of new ones.

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