Hyundai Motor Group Establishes Robot AI Research Institute and Global SW Center to Secure Future New Growth Engines

Hyundai Motor, Kia, and Hyundai Mobis Invest $424 Million

[Asia Economy Reporter Kiho Sung] Hyundai Motor Group announced on the 12th that it will establish a 'Robot AI Research Institute' in the United States to strengthen its artificial intelligence (AI) capabilities, a core growth engine for future new businesses. In addition, it plans to establish a 'Global SW Center' in Korea to quickly secure software (SW) capabilities for the future car era.

Hyundai Motor Group plans to accelerate the strengthening of competitiveness in future businesses such as robotics and autonomous driving, while laying the foundation for sustainable growth through nurturing and recruiting key talents.

‘Securing AI Capabilities to Lead Growth in Future New Businesses’ … Establishing Robot AI Research Institute in Boston, USA

Hyundai Motor Group decided to establish a Robot AI Research Institute in Cambridge, Boston, Massachusetts, USA, to secure advanced AI capabilities that can create synergy through direct and indirect connections with various future new businesses including robotics.

Hyundai Motor, Kia, and Hyundai Mobis, three companies of Hyundai Motor Group, announced on the same day that they will invest a total of $424 million in the Robot AI Research Institute. Additionally, Boston Dynamics, which has steadily secured AI capabilities in the robotics field, is expected to invest a minority stake in the Robot AI Research Institute. Boston Dynamics is a U.S.-based robotics specialist company acquired by Hyundai Motor Group in June 2021.

The corporate name of the Robot AI Research Institute is under review as ‘Boston Dynamics AI Institute.’ Mark Raibert, founder and former chairman of Boston Dynamics, will serve as CEO and director of the institute and plans to promptly recruit outstanding talents.

According to Hyundai Motor Group, the global robot market, which was about $44.4 billion in 2020, is expected to grow sharply to $177.2 billion by 2025 with an average annual growth rate of 32%, and robot technology is anticipated to be applied across various fields.

For example, service robots that previously only provided simple guidance are expected to evolve into personal assistant robots, and single logistics robots that moved items individually are expected to develop into automated warehouses that are robots themselves. To realize such changes, securing AI technology capabilities that support the expansion of robot technology into various areas is essential.

In this regard, the Robot AI Research Institute plans to continuously strengthen robotics capabilities and promote research and development to maximize the versatility of robot technology.

First, the Robot AI Research Institute will pursue securing foundational technologies that will form the basis of next-generation robots. While continuously advancing robot technologies such as motor intelligence and cognitive intelligence, it will learn from data collected through interactions with external environments, verify their validity, and ultimately challenge the limits of robot control.

The Robot AI Research Institute will also research and develop AI models that can improve the versatility of robot technology. In the mid to long term, it plans to establish a self-revenue model by selling the robot AI platform.

Furthermore, the Robot AI Research Institute will actively promote the attraction of excellent research personnel and collaboration with various industry-academia-research entities. The Cambridge area of Boston, where the Robot AI Research Institute will be established, is home to world-class universities and research institutions such as the Massachusetts Institute of Technology (MIT) and Harvard University, as well as many global leading tech companies.

A Hyundai Motor Group official said, “The Robot AI Research Institute will be an important hub to expand AI technology beyond robotics to various business areas of Hyundai Motor Group,” adding, “We will take the lead in researching and developing essential new AI technologies for future new business growth.”

‘Early Transition to SDV Development System’ … Accelerating Capability Acquisition through Establishment of Global SW Center

Hyundai Motor Group also decided to establish a ‘Global SW Center’ in Korea to lead the development of group software capabilities for the early transition to the SDV (Software Defined Vehicle) development system and to strengthen software (SW) competitiveness.

Recently, the paradigm of the automotive industry is rapidly shifting from traditional hardware to software-centric, and the importance of securing software capabilities is emphasized more than ever to realize MECA (Mobility, Electrification, Connectivity, Autonomous driving). Accordingly, competition among companies to launch software services is also intensifying.

Hyundai Motor Group judged that software capabilities will determine future success or failure and decided to respond promptly to market changes by launching the Global SW Center as soon as possible. As part of building the Global SW Center, Hyundai Motor Group announced on the 12th that it will acquire ‘42dot,’ a startup that has developed autonomous driving software and mobility platforms. Through the establishment of the Global SW Center, Hyundai Motor Group plans to quickly consolidate capabilities within the group and strengthen software competitiveness.

The Global SW Center plans to build the SDV development system by not only strengthening internal talent development but also actively recruiting external talents and promoting external cooperation to maximize synergy. In particular, it will gradually advance software capabilities aiming to implement optimal customer-tailored solutions.

A Hyundai Motor Group official said, “The Global SW Center will lead bold innovation based on a flexible and creative organizational culture that does not rely on existing development systems,” adding, “We expect to contribute to the early establishment of the SDV development system by quickly securing high-level software capabilities.”