Hyundai to set up AI robotics R&D center near Boston

South Korea’s Hyundai Motor Group will set up an artificial intelligence research center in the Boston area to develop AI-driven robotics technologies, one of the group’s future growth pillars.

The group’s three units — Hyundai Motor Co., Kia Corp. and Hyundai Mobis Co. —  will spend a combined $424 million to establish the R&D center, tentatively called the Boston Dynamics AI Institute, the group said on Friday.

Boston Dynamics Inc. will take a minority stake in the institute, but Hyundai gave no further details about its investment size.

Hyundai took over Boston Dynamics, known for its maneuverable dog-like robot Spot, in mid-2021.

Boston Dynamics’ founder and ex-Chairman Marc Raibert will take charge of the research center as CEO and head of research.

Hyundai Motor Group expects robotics to take up one-fifth of its sales down the road, creating greater synergy with its other business areas. Hyundai forecasts the global robotics market to grow at an average annual rate of 32% to $177.2 billion won by 2025.

Robots are evolving from guidance and delivery assistants to personal secretaries and automated storage centers.

Hyundai selected Cambridge, Massachusetts — home to prestigious Harvard University and MIT — as its R&D center's home. 

The automotive group said its location would pave the way for holding joint research projects with the top universities, other research centers and startups in the area, as well as in recruiting AI talent.

At home, Hyundai will open a software research center focused on driving efficiency and other vehicle functions.

The group said that its 428-billion-won ($330 million) purchase of self-driving technology startup 42dot Inc. would contribute to the software R&D center from Korea. The startup develops autonomous driving software and mobility platforms.

The auto industry is transforming from a hardware-centric to a software-oriented business. Software technology is a key to developing autonomous driving, electrification and connectivity with mobile devices.

Write to Hyung-Kyu Kim at khk@hankyung.com
Yeonhee Kim edited this article