There is talk that Chung Eui-sun, chair of Hyundai Motor Group, will inject an additional about 120 billion won of personal funds to raise his Boston Dynamics equity ratio to 25%. Observers say Hyundai Motor Group securing the entire Boston Dynamics equity will accelerate its push into physical AI and an initial public offering (IPO).
On the 19th, according to the securities industry and the business community, Chung and Hyundai Motor Group affiliates are said to be reviewing a plan to acquire the 9.65% Boston Dynamics equity for which SoftBank exercised its put option, divided according to their existing ownership ratios.
Currently, Boston Dynamics equity is held by HMG Global, an investment vehicle joined by Hyundai Motor, Kia, and Hyundai Mobis, with 56.4%; Chung with 22.6%; Hyundai Glovis with 11.25%; and SoftBank with 9.65%. If the acquisition proceeds as discussed, the equity ratios would be reshuffled to HMG Global 62.5%, Chung 25%, and Hyundai Glovis 12.5%.
The purchase price for SoftBank's equity is estimated at about $320 million. HMG Global is expected to shoulder about $200 million, Chung about $80 million, and Hyundai Glovis about $40 million, respectively.
Chung also invested 238.9 billion won of personal funds when Hyundai Motor Group acquired management control of Boston Dynamics in 2021. The securities industry expects the cumulative investment to reach about 800 billion won when adding the paid-in capital increase participation and this equity purchase. Hyundai Motor Group said, "Each shareholder is reviewing acquisition plans in accordance with internal procedures regarding the occurrence of obligations for the equity acquisition."
Hyundai Motor Group is expanding its physical AI business, led by Boston Dynamics' next-generation Humanoid Robot "Atlas." After validating process-specific performance at Hyundai Motor Group Metaplant America (HMGMA) in Georgia, it plans to deploy the robot for sequencing work to classify parts in 2028 and broaden its use to parts assembly starting in 2030.
As the equity structure is simplified around Hyundai Motor Group affiliates and Chung, analysis suggests that pushing for a Boston Dynamics IPO could become easier. Hyundai Motor Group is said to be reviewing several options, including a Nasdaq listing in the United States.
There is also talk of pursuing a pre-IPO targeting global corporations ahead of the listing. Korea Investment & Securities Co. said SoftBank's equity could be used for a pre-IPO and proposed Google as a potential investor. Google DeepMind is jointly researching AI models with Boston Dynamics for complex robot control.