Bone AI raises $12M to challenge Asia’s defense giants with AI-powered robotics

Bone AI, a Seoul- and Palo Alto-based startup founded by DK Lee, has raised $12 million in seed funding to develop an integrated AI platform combining software, hardware, and manufacturing for autonomous defense robotics. The company focuses on next-generation unmanned aerial (UAVs), ground (UGVs), and marine (USVs) vehicles primarily for government and defense clients, starting with aerial drones designed for logistics, wildfire detection, and anti-drone missions. Despite South Korea’s large defense industry and $69 billion order backlog, its defense-tech startup ecosystem remains underdeveloped, creating an opportunity that Bone AI aims to fill by leveraging Korea’s manufacturing strengths and advanced materials expertise through strategic partnerships like Kolon Group. Bone AI has quickly gained traction, securing a seven-figure government contract and generating $3 million in revenue within its first year, partly by acquiring a South Korean drone company. Founder DK Lee emphasizes the company’s broader vision as a “physical AI” firm that integrates AI simulation, autonomy