Driving Startup Growth Through Artificial Intelligence: Hyundai Motor Group’s Open Innovation Strategies and Initiatives

Driving Startup Growth Through Artificial Intelligence

Introduction

Hyundai Motor Group recently held its Open Innovation Tech Day event in Seoul, during which the Group showcased its coexisting and future strategies with participants in the global startup ecosystem. The event also provided an opportunity for the Group to share the results of its open innovation initiatives to date. Hyundai Motor Group aims to secure innovative growth engines by establishing cooperative relationships with select startups worldwide while supporting and nurturing their global advancement.

Investing in Startups for Future Growth

Hyundai Motor Group has made significant investments in more than 200 startups since 2017, totaling KRW 1.3 trillion. These investments have been focused on various business areas, including electrification, connectivity, artificial intelligence (AI), autonomous driving, renewables, robotics, and mobility services. Notable investments include KRW 700 billion in mobility services, KRW 280 billion in electrification, KRW 126 billion in connectivity, KRW 60 billion in AI, KRW 54 billion in autonomous driving, and KRW 25 billion in energy. These investments demonstrate the Group’s commitment to driving innovation and technological advancements in the automotive industry.

Coexistence Ecosystem and Open Innovation

According to Dr. Yunseong Hwang, Vice President and Head of Open Innovation Execution Group at Hyundai Motor Group, the Group is looking for startups that can bring positive changes to people’s lives through innovative technologies or services. The goal is to establish a coexistence ecosystem by actively investing in startups that provide important insights into the creation of future smart and sustainable mobility solutions. By investing in these startups, the Group aims to improve the well-being and quality of life for humanity.

Open Innovation Strategies and Initiatives

Hyundai Motor Group’s Open Innovation initiative is based on four types of investment: sensing investment, linked investment, strategic investment, and company building. Sensing investment involves identifying trends in fast-changing new growth business areas. Linked investment promotes cooperation based on expected strategic synergy. Strategic investment aims to secure immediate or quick business capabilities. Finally, company building focuses on fostering internal startups with necessary technologies and business areas for the Group.

To strengthen its open innovation activities, Hyundai Motor Group operates global innovation hubs known as ‘CRADLE’ in five countries: the United States, Germany, Israel, China, and Singapore. These hubs serve as platforms for collaboration and innovation with startups. Additionally, the Group has established ‘ZER01NE’ in Korea, which serves as a hub for open innovation. ZER01NE has played a vital role in recruiting startups through its ZER01NE Accelerator program, which aims to discover valuable startups and explore the possibilities of strategic use cases for their innovative technologies.

Empowering In-House Startups

Hyundai Motor Group also operates an in-house startup system called ‘ZER01NE Company Builder,’ which allows executives and employees of group companies to foster in-house startups. This initiative has resulted in the spin-off of 30 in-house startups with cumulative sales of KRW 280 billion. These startups have been recognized for their market value and business feasibility, leading to the hiring of over 800 new employees.

Expanding the Scope of Open Innovation

Hyundai Motor Group recognizes the importance of continuous collaboration with startups to drive innovation and technological advancements. As part of its open innovation efforts, the Group is actively seeking opportunities in areas such as Software Defined Vehicles (SDVs), resource circulation, semiconductor, artificial intelligence (AI), and quantum technology. By expanding the scope of open innovation, Hyundai Motor Group aims to harness the power of emerging technologies to develop cutting-edge solutions for the automotive industry.

Success Stories and Collaborations

During the Open Innovation Tech Day event, Hyundai Motor Group highlighted its major investments and collaborations with key startups that have experienced significant growth through the Group’s open innovation initiatives. These success stories include:

• IONITY: Hyundai Motor Group’s collaboration with IONITY, the European EV high-speed charging infrastructure company, has resulted in the installation of approximately 2,000 high-speed chargers across Europe. Hyundai Motor is also providing a premium package to IONIQ 5 customers, allowing them to use IONITY’s charging facilities for one year.

• Rimac Automobili: The Group’s investment in Rimac Automobili, a Croatian ultra-high-performance electric vehicle company, has established a cooperative relationship that has contributed to the advancement of high-performance electric vehicle technology at Hyundai Motor and Kia. Rimac Automobili has a corporate value of EUR 2.2 billion.

• IonQ: Hyundai Motor Group has been collaborating with IonQ, a U.S. quantum computing company, on various joint research projects. These projects focus on upgrades to autonomous driving and battery technology and leverage IonQ’s expertise in quantum computing.

• SoundHound: SoundHound, a U.S. voice recognition solution company, received investment from Hyundai Motor Group between 2011 and 2020. The company provides voice recognition services featured in Hyundai, Kia, and Genesis models sold in North America and India.

• Suresofttech: Hyundai Motor Group invested in Suresofttech, a Korean company specializing in software verification technology. The collaboration between the Group and Suresofttech has resulted in software verification collaboration on vehicle controllers and connected car systems. Suresofttech has grown into a global technology company, expanding its business to various fields such as nuclear power, defense, rail, and aviation.

Expanding Global Presence

Hyundai Motor Group’s ZER01NE open innovation platform made its debut at the 2023 CES held in Las Vegas. The platform introduced ten domestic startups and showcased the potential for global expansion. By participating in global events and collaborating with startups from around the world, Hyundai Motor Group aims to discover the best and most innovative technologies that will contribute to the development of sustainable mobility solutions and benefit humanity.

Conclusion

Hyundai Motor Group’s commitment to driving startup growth through artificial intelligence is evident in its open innovation strategies and initiatives. By investing in startups and fostering collaboration, the Group aims to create a coexistence ecosystem that will lead to the development of smart and sustainable mobility solutions. With its global innovation hubs, investment funds, and open innovation platforms, Hyundai Motor Group is well-equipped to discover and support the most promising startups and technologies that will shape the future of the automotive industry.