"Looking at the headquarters, I feel like I'm in the world in 2050."An investor in his 30s who took a picture of the robot version of Rocket Lab and Apple [Yeouido Dolan]

If we compare the robot industry with artificial intelligence (AI), we are now at the GPT-3 stage. It is only a matter of time before robots reach the level of GPT-5 or GPT-6.

In a recent interview with Maeil Economy, Andrew Kang, CEO of RoboStrategy, spoke about the physical AI market. "In 2023, AI looked like a toy, but within a year or two, its abilities improved greatly and the industry grew quickly," he said. He added, "The same thing will happen with robots."

RoboStrategy (stock code 'BOT') is an investment company focused on robots. It was listed on Nasdaq in May. Its model is inspired by companies such as SoftBank and MicroStrategy, which use publicly traded companies to manage large amounts of investment money. RoboStrategy mainly invests in private robot companies that are not listed on the stock market, including Figure AI, Dynamic Robotics, and Standard Bots. This lets ordinary investors invest in these companies indirectly by buying 'BOT' shares.

Asked whether robot companies could become "ten-baggers"—stocks or companies whose value rises more than ten times, as Rocket Lab has done in the space industry—Kang replied, "Companies like that already exist in the private market."

Kang is an investor in his 30s who started investing in robots before the recent excitement about physical AI. He invested in Figure AI, a company that makes humanoid robots, three years ago. The company's value has since grown to $39 billion, or about 55 trillion won. He still visits robot companies in person to look for the next big success in the industry.

Kang said that the basic AI models that act as a robot's 'brain' are improving quickly. "Now, if we show a robot how to do something, it can copy similar movements," he said. However, these changes are happening in research centers and factories, so most people do not see them easily.

The views of investors in the United States are also changing quickly. "Venture capital firms used to put most of their money into software. But as AI develops, people are starting to think that investing in software has become harder," he said. He added that investors who provide money to these firms are putting pressure on them to change their plans, leading them to invest more in physical AI.

According to Kang, the use of robots in American industry has grown quickly in recent years. However, most people do not notice this because robots work in factories and distribution centers rather than in places consumers visit every day, he explained.

More companies are using robots in manufacturing and shipping operations. Pass Robotics, a company backed by RoboStrategy, has developed an AI model designed only for welding. It has been used in real workplaces for more than two years. "It works faster than people or produces better-quality results," Kang said. He added that companies like these are growing three to ten times a year, rather than by just 20 to 30 percent.

Kang sees Figure AI as a possible Apple of the robot industry. Figure AI was founded in 2022 and develops humanoid robots. When it raised investment last year, the company was valued at $39 billion. Nvidia and Intel also invested in the company.

After visiting Figure AI's headquarters a few weeks ago, Kang said, "I felt like I was in the year 2050." He explained, "Figure AI is already making hundreds of robots every month. There are so many robots that they cannot all fit inside the building, and they even walk along the paths between buildings."

When looking at Korean companies, Kang focused on what large companies are doing. "Much of the interesting work in Korea is being done by large business groups such as Samsung and LG," he explained. "They work with some American robot companies as distribution partners, obtain licenses to use their technology, and develop their own robots."

He also spoke positively about South Korea's robot industry. "Korea is very active in robotics, and it has many talented engineers and experts in robot AI," he said. He added that RoboStrategy had not yet invested in private Korean robot companies but was continuing to look at young companies in the field.

By contrast, Kang thought Chinese humanoid robot companies offered less attractive investment opportunities because there is too much competition. "There are about four or five serious humanoid robot companies in the United States, but hundreds in China," he said. When too many companies compete, they lower their prices to win customers, which reduces profits. "BYD sells more cars than Tesla, but its market value is only 5 to 10 percent of Tesla's," he said. "The same thing will happen with robots."

U.S. regulations are another factor. In July, the U.S. Federal Communications Commission (FCC) banned the sale in the United States of new humanoid and four-legged walking robots from China. Kang said this could allow American companies to charge higher prices, much as Apple has done in the smartphone market.

Kang believes that the values of major robot companies around the world are still relatively low. According to him, all private companies working on physical AI worldwide have a combined value of only about $200 billion. That is one-third of Palantir's value.

One reason he focuses on private companies is that the way companies enter the stock market has changed. In the past, companies such as Nvidia and Apple went public when they were still relatively young. Today, large companies, government-owned investment funds, and private equity funds are putting money into businesses at later stages. As a result, many companies remain private for a long time.

Kang said, "It does not make sense to wait for these companies to go public." He explained, "These days, when companies enter the stock market, they may already be worth $1 trillion to $2 trillion. Very few investors get to benefit from their growth from almost nothing to a value of $1 trillion or $2 trillion." There are currently no publicly listed companies that offer a pure investment in robots. By the time such companies go public, their values may already have risen greatly.

However, Kang urged individual investors to be careful. "Physical AI will have some big winners, but many early-stage companies will also fail," he said. "If you invest directly, you should study the field carefully. It is better to invest through products managed by people who have as much experience in this area as possible."