Samsung pays $181 million to become Rainbow Robotics’ largest shareholder

Samsung Electronics said Tuesday that it has become the largest shareholder in South Korea-based robotics maker Rainbow Robotics, increasing its stake from 14.7% to 35% for KRW 267 billion (about $181 billion).

The electronics giant, which paid KRW 86.8 billion for a 14.7% stake in 2023, said it bought the stake to strengthen its robotics department and accelerate the development of humanoid robots. Rainbow Robotics will be integrated as a subsidiary of Samsung, and the deal is expected to close in February 2025.

The company also said it will establish an Office of Future Robots that will report directly to the CEO. The deal also allows Rainbow Robotics to expand into foreign markets using Samsung’s capabilities.

Founded in 2011 by researchers at the Korea Advanced Institute of Science and Technology (KAIST), Rainbow has developed two-armed mobile manipulators and autonomous mobile robots for applications in manufacturing and logistics. It has 86 employees.

Rainbow’s founding member, the robotics company’s former largest shareholder before the deal, and KAIST professor emeritus Dr. Jun-ho Oh will stay on board and serve to lead a new effort at Samsung called the Office of Future Robotics. as a consultant.

Samsung is the latest company to enter the race to create humanoid robots that can act more autonomously. Microsoft and OpenAI planning using its technology for humanoid robots and Tesla earlier this year Robots, Optimus demonstrated his position. Nvidia also plans to release a new series of compact computers next year for humanoid robots called Jetson Thor.

Samsung in 2022 he said robotics will be a key part of its future ventures, along with AI, 5G and automotive electronics, suggesting potential acquisitions in these areas could be on the horizon.