Hyundai Motor Group moves to make Boston Dynamics a full subsidiary, accelerating physical AI push

Hyundai Motor Group appears poised to tighten its grip on robotics firm Boston Dynamics, a move analysts say would give fresh momentum to the group's physical AI strategy. The question now is whether the group can evolve beyond simple equity investment — deploying humanoid robots on actual factory floors — and emerge as a physical AI platform company that generates synergies and revenue across its affiliates.

Hyundai Motor Group affiliates are set to report to their respective boards from late this month on the possible acquisition of SoftBank's 9.9 percent stake in Boston Dynamics and the timing of a potential initial public offering, industry sources said Monday. Hyundai Motor, Kia and Hyundai Mobis hold their Boston Dynamics stakes indirectly through HMG Global, meaning the acquisition itself does not require a board vote at each company. Related discussions are therefore expected to proceed as informational reports rather than formal resolutions.

SoftBank has a window from Sunday through June 30 to decide whether to sell its remaining Boston Dynamics stake to Hyundai Motor Group. The put option gives SoftBank the right to demand that Hyundai Motor Group buy its shares at predetermined terms. SoftBank has not yet formally communicated its intentions to Hyundai Motor Group, sources said.

Industry watchers broadly expect SoftBank to move to sell its stake within that window.

Even if SoftBank does not exercise its put option, Hyundai Motor Group retains a further avenue. For 30 days after the put option window closes, the group can exercise a call option — effectively demanding to buy SoftBank's shares itself.

Under the shareholder agreement, SoftBank's put option became exercisable five years after June 21, 2021, and must be exercised within 30 days of that date. If Boston Dynamics has not completed an initial public offering by then, SoftBank may sell its entire stake to Hyundai Motor Group. The put option exercise price is estimated at around $300 million (460 billion won).

Should SoftBank decline to exercise the put option, existing shareholders may demand that SoftBank sell all of its shares during the 30-day call option window that immediately follows. If Hyundai Motor Group exercises that call option, SoftBank is contractually obligated to transfer the stake. Any transaction triggered by either option must close within 90 days of the exercise notice.

Given this contractual structure, market observers say Boston Dynamics could effectively be on a path to becoming a wholly owned subsidiary of Hyundai Motor Group.

For Hyundai Motor Group, improving the execution of its Boston Dynamics-centered robotics business matters as much as expanding its ownership stake. The market appears to be reading the ownership restructuring as a signal that the group is shifting into a higher gear on its robotics strategy.

"A Boston Dynamics listing could serve as a catalyst for Hyundai Motor Group to be reappraised as a physical AI platform company," said Park Gwang-rae, a research fellow at Shinhan Investment. "However, to command a high valuation, the company will need to demonstrate Atlas's real-world task data and its ability to win external customers."

Once the ownership structure is resolved, key decisions on humanoid development, mass production, external partnerships and factory deployment could move faster.

At the center of it all is Atlas, Boston Dynamics' humanoid robot. The company is advancing the case for industrial deployment of its electric Atlas platform. Pilot supply to initial customers is set to begin later this year, with full-scale deployment at Hyundai Motor Group production facilities expected from 2028. By around 2030, Atlas's role is projected to expand into assembly, logistics, and high-risk, heavy-load tasks.

Hyundai Motor Group is particularly well positioned for physical AI deployment. The group simultaneously operates automotive factories, a parts production network and a logistics system, giving it the hardware, AI models, vast real-world operational data and validation environments that physical AI requires to function on the ground.

Internal synergies within the group are also drawing attention. As Boston Dynamics moves toward humanoid mass production, the role of in-house parts affiliates — covering actuators, automotive electronics, batteries and sensors — could grow substantially. Hyundai Mobis in particular is seen as a candidate to extend beyond its traditional automotive parts business into a supply chain for core robotics components.

Meanwhile, as global players including Tesla, Figure AI and Apptronik accelerate their humanoid development, potential collaboration with big-tech firms such as Google DeepMind and Nvidia Omniverse is also drawing attention.

Separately from the SoftBank stake acquisition, Boston Dynamics faces a growing need for additional funding. Because the SoftBank transaction is a deal between existing shareholders, the proceeds would not flow directly into Boston Dynamics.

Even if Hyundai Motor Group acquires all of SoftBank's remaining shares, the ownership structure would not be locked in immediately. The capital demands of humanoid mass production and expanded research and development leave open the possibility of additional paid-in capital increases before an IPO. If external strategic investors such as Google participate in that process, the stakes held by Hyundai Motor Group and Chairman Euisun Chung could be diluted.

"Boston Dynamics is expected to exhaust the 1.3 trillion won raised in its previous capital increase by the end of this year, and we expect two to three additional rounds of capital raising before an IPO," said Yoo Ji-woong, a researcher at Daol Investment & Securities. "Even accounting for dilution, Hyundai Motor Group and Chairman Chung are likely to actively pursue external strategic investors, including Google."