Amid the artificial intelligence revolution, there is a shift in technological focus towards practical applications, specifically the creation of physical robots with AI. Mujin successfully raised $224 million in a Series D funding round for the development of such robots.
One of the investors in this round is the South Korean company SK Square, which is making significant bets on the future of physical AI. Mujin, Inc., a Japanese robotics company founded in 2011, utilizes its flagship product, Mujin OS—a general-purpose platform for robot control.
Many different machines are used in most production workshops and warehouses. Typically, manipulators, conveyors, and automated guided vehicles operate in isolation. Mujin OS acts as a single central intelligence that not only powers but also connects all robots in the warehouse, making each robot smarter and allowing one system to manage the entire facility. This represents the growing trend of physical AI, as Mujin creates artificial intelligence to power physical robots.
SK Square participated in the round through its foreign investment company, TGC Square, although the amount of its investment was not disclosed. According to Korea Economic Daily, the total volume of the round exceeded 300 billion won, which is approximately $224 million.
SK Square is actively investing in AI-powered physical robots as it transforms into a semiconductor investment holding company. Since chips require factories, and factories require robots, there is a need for clear instructions for robots. SK Square has obvious areas of application within SK Group, including semiconductor packaging, logistics, and factory construction sites, as well as a broader vision for autonomous manufacturing.
SK Square expects one operating system to be able to control all logistics equipment in a chip manufacturing plant. This forecast is not unfounded, given that SK Square, being the eighth American or Japanese company in the field of AI and chips, received support from TGC Square. The previously selected company d-Matrix is now valued at over $2 billion, more than seven times its valuation at the time of SK Square's investment in 2023.
The attraction of over $224 million, which increases Mujin's total funds raised to over $500 million, demonstrates the direction of future investments. If previously most of the funds going into AI were directed towards chips and advanced models, the share of funds going towards machines with real AI applications is now increasing. This shift underscores SK Square's strategy. This new wave of value does not necessarily have to reside in the chip; it can be realized on the robotic factory where that chip is produced. This is critically important for investors, operators, and participants in any supply chain, as physical AI has the potential to revolutionize storage, sorting, and goods production, and companies like Mujin are developing the corresponding software.