Samsung, Nvidia plan to invest in Skild AI to advance robotics push – Bloomberg

Samsung and Nvidia are investing in U.S.-based robotics software developer Skild AI as part of its Series B funding round, led by SoftBank, valuing Skild at approximately $4.5 billion. Nvidia is investing $25 million, while Samsung is contributing $10 million, reflecting their strategies to expand in the robotics industry, particularly in "physical AI" applications. Nvidia views robotics as a key future revenue stream, while Samsung is reportedly taking a more cautious approach to monitor innovation.

Analysis

Samsung Electronics (KS:005930) and NVIDIA (NASDAQ:NVDA) are strategically investing in U.S.-based robotics software developer Skild AI, with Samsung contributing $10 million and NVIDIA $25 million, as part of a Series B funding round that values Skild AI at approximately $4.5 billion. This funding round, led by a significant $100 million commitment from Japan’s SoftBank Group (TYO:9984), underscores the heightened focus of major technology corporations on the burgeoning "physical AI" market, which includes applications like autonomous vehicles and humanoid robots. For NVIDIA, this investment is consistent with its declared strategy of cultivating robotics as a key future revenue stream, building on prior investments in entities such as Figure AI and Serve Robotics (NASDAQ:SERV). Samsung's participation, characterized by a smaller financial commitment, reflects a more cautious approach, enabling it to monitor innovation within the advanced robotics software landscape while leveraging existing stakes in firms like Rainbow Robotics and Physical Intelligence. The collective investments signal a competitive drive among tech leaders to establish and deepen their presence in the rapidly advancing robotics industry, fueled by breakthroughs in artificial intelligence.

Key Decisions for Investors

• NVIDIA's investment, while modest relative to its market capitalization, reinforces its strategic commitment to the robotics sector as a significant future growth driver; investors should monitor further developments in its 'physical AI' initiatives and partnerships.
• Samsung's comparatively smaller investment in Skild AI suggests a prudent, exploratory approach to the robotics software market, indicating this is more of a long-term strategic positioning and innovation-monitoring effort than an immediate financial catalyst.
• The substantial Series B valuation of Skild AI, backed by prominent technology players like NVIDIA, Samsung, and SoftBank, highlights robust investor confidence in the AI-powered robotics domain and signals continued growth potential for specialized firms within this ecosystem.