South Korea’s booming defense sector—now holding roughly $69 billion in order backlogs—has yet to produce many disruptive startups. Bone AI, founded in 2024 and based in Seoul and Palo Alto, aims to change that. The company has raised a $12 million seed round led by Third Prime, with strategic backing from Kolon Group, and has already secured a seven-figure B2G contract and $3 million in first-year revenue.
Bone AI is building a unified “physical AI” stack that integrates software, autonomy models, embedded systems, hardware design, and manufacturing. Its initial focus is on defense-oriented UAVs, supporting missions like logistics, wildfire detection, and anti-drone operations. The company expanded rapidly by acquiring drone manufacturer D-Makersjust six months after launch, bringing in both IP and manufacturing capabilities.
Founder DK Lee, who also co-founded MarqVision, personally committed over $1.5M to the seed round. Lee describes Bone’s mission as constructing the industrial backbone needed to scale intelligent machines—leveraging South Korea’s strengths in automotive, shipbuilding, and semiconductor manufacturing.
With global interest in sovereign AI rising, investors say Bone sits at the intersection of reindustrialization, defense autonomy, and multipolar AI strategy, positioning it as a potential regional counterpart to Anduril or Helsing.
