Seoul and Palo Alto-based Bone AI has closed a $12 million seed funding round. Third Prime led the investment, securing participation from South Korean strategic investor Kolon Group.
The funding fuels Bone AI’s mission to create a unified AI platform integrating software, hardware, and manufacturing capabilities. The company focuses on developing autonomous air, ground, and marine vehicles for government and defense clients.
Bone AI is prioritizing defense-focused aerial drones initially. These UAVs are designed for critical operations including logistics support, wildfire detection, and counter-drone defense systems.
Founder DK Lee, who previously co-founded MarqVision, rapidly accelerated Bone AI’s progress. The company acquired a South Korean drone firm, D-Makers, just six months after its founding.
This acquisition allowed Bone AI to immediately integrate existing AI models with established robotics hardware and intellectual property. The startup is already generating revenue, having secured a seven-figure B2G contract in its first year.
Lee views Bone AI as a "physical AI" company, not strictly a defense contractor. He aims to build the industrial backbone connecting advanced AI simulation with scaled physical machine deployment.
The goal is to establish a robust supply chain for Physical AI initially within South Korea. Subsequently, Bone AI plans to expand this integrated capability across the U.S. and Europe.
Third Prime noted Bone AI’s unique position at the nexus of sovereign AI and global reindustrialization trends. The investment recognizes the potential to leverage South Korea’s world-class hardware manufacturing base.
Furthermore, the founder personally committed over $1.5 million to the round, signaling deep commitment to the ambitious long-term vision. Bone AI anticipates further acquisitions to accelerate product maturity.
