Asia’s Manufacturing Prowess Fuels the Next Wave of AI-Driven Robotics

In a world increasingly dominated by artificial intelligence (AI), Asia’s historic strength in manufacturing is now propelling the region to the forefront of a transformative new frontier: physical AI. Unlike software-driven AI, which relies on vast amounts of digital data, physical AI integrates AI into robots and machinery, enabling them to perform complex tasks in the real world. Across South Korea, Japan, China, and Taiwan, where manufacturing has long been a cornerstone of economic growth, this shift is reshaping industries and attracting significant investment. At the heart of this transformation is a Seoul- and San Jose-based startup, Config, which has recently secured $27 million in seed funding led by Samsung Venture Investment, signaling the growing importance of robotics AI in global manufacturing.

Config’s latest funding round, which values the company at over $200 million, underscores the strategic interest of South Korea’s industrial giants in AI-driven robotics. Joining Samsung are Hyundai Motor’s venture arm, ZER01NE Ventures, LG Tech Ventures, and SKT America, the VC unit of South Korean telecom leader SK Telecom. The round also attracted prominent angel investors like Pieter Abbeel, co-founder of Covariant AI and a professor at UC Berkeley, as well as financial backers including Mirae Asset Ventures, Korea Development Bank, GS Futures, Kakao Ventures, and Z Ventures. With total funding now at $35 million, Config is poised to play a pivotal role in advancing robotics AI globally.

The Challenge of Physical AI

Founded in January 2025 by CEO Minjoon Seo, a former Meta researcher and chief scientist at Twelve Labs, Config is tackling one of the most significant hurdles in robotics: the collection and processing of training data. While large language models (LLMs) like OpenAI’s GPT rely on readily available text data from the internet, robotics AI requires physical data—information gathered from real-world interactions. “Every piece of training data has to be physically collected,” Seo explained in an exclusive interview with TechCrunch. “You need the robot, the facility to run it, and people to operate it. This makes robotics AI exponentially more costly to develop than software-only AI like chatbots.”

To address this challenge, Config operates studios in Seoul and Hanoi, where a workforce of nearly 300 records humans performing physical tasks in controlled environments and real-world settings. The company has already amassed over 100,000 hours of human motion data, dwarfing the largest comparable open-source dataset, AgiBot World, which contains roughly 3,000 hours. This vast repository is the foundation for Config’s mission to make robots more capable and efficient.

A Unique Approach: Transforming Data, Not Models

Config’s innovative approach sets it apart from competitors in the robotics AI space. While most companies train AI models on human motion data and then adapt those models for robots, Config focuses on transforming the data itself before training begins. Seo likens the process to language translation. “Training a model on one type of data and expecting it to work seamlessly in another setting is like trying to teach Korean using only English-language materials,” he said. “The data must be converted, not the model. This conversion technology is Config’s core technical differentiator.”

By refining the data to better suit the way robots move and interact with the world, Config aims to accelerate the development of robotic foundation models (RFMs)—AI systems that can perform a wide range of tasks across different environments. The company positions itself as a critical enabler for manufacturers seeking to build proprietary robotics AI systems rather than relying on external vendors. In this way, Config draws parallels to Taiwan Semiconductor Manufacturing Company (TSMC), which manufactures chips for tech giants like Apple and Nvidia without competing with them.

Strategic Growth and Emerging Markets

Config’s funding will fuel three key priorities: scaling its data operations to collect one million hours of human motion data, growing its enterprise platform business to $10 million in annual recurring revenue (ARR) by the end of 2027, and launching a cloud-based Robot-as-a-Service (RaaS) product. The RaaS offering will allow companies to run Config’s foundation models without requiring onboard hardware, lowering the barrier to entry for businesses exploring robotics AI.

The startup’s current clientele includes large manufacturers, system integrators, and companies in sectors like agriculture and defense. Config is already generating revenue, according to COO and co-founder Jack Bang, who noted that the company’s data-driven approach is resonating with industries seeking more capable and autonomous robots. Competitors in the space include Physical Intelligence, Generalist AI, and Skild AI, but Config’s unique focus on data conversion positions it as a leader in the burgeoning field of robotics AI.

Asia’s Manufacturing Edge in the AI Era

Config’s success reflects broader trends in Asia’s industrial landscape. The region’s dominance in manufacturing, built on decades of expertise in large-scale production, export-driven industries, and optimized supply chains, is now driving its leadership in physical AI. As companies in South Korea, Japan, China, and Taiwan increasingly integrate AI into their operations, the demand for advanced robotics solutions is expected to grow exponentially.

For Config, the backing of South Korea’s largest manufacturers is both a validation of its vision and a strategic advantage. By aligning with industry leaders like Samsung, Hyundai, and LG, Config is well-positioned to capitalize on the expanding market for robotics AI. As Seo put it, “We want to be the company that makes everyone else’s robot AI possible.”

The Road Ahead

As Config scales its operations and refines its technology, the startup is poised to play a central role in the evolution of robotics AI. Its focus on data transformation and its partnerships with major manufacturers underscore the growing importance of physical AI in reshaping industries worldwide. With Asia’s manufacturing prowess as its foundation, Config is not just building a company—it’s helping to define the future of robotics in the age of AI. Whether it can achieve its ambitious goals remains to be seen, but one thing is clear: the race to revolutionize robotics AI is well underway, and Asia is leading the charge.