Hyundai Motor’s software unit 42dot to raise $360m

Hyundai Motor Group’s software unit 42dot said Monday it plans to raise 500 billion won ($360 million) through a rights offering as the artificial intelligence-based mobility technology company looks to bolster its global competitiveness.

According to 42dot, the Korean auto conglomerate’s two brands -- Hyundai Motor Company and Kia -- will take part in the paid-in capital increase as strategic investors. The software firm said the investment follows the conglomerate’s three-year capital expansion plan that was approved in 2023.

With the additional capital, 42dot plans to allocate the funding to advancing technologies for software-defined vehicles, or SDVs, investing in agentic AI and graphics processing units, infrastructure, and securing global talent as part of the company’s mid- to long-term strategy.

In line with Hyundai Motor’s SDV roadmap, 42dot is expected next year to complete the development of an SDV using its autonomous driving platform Pace Car and apply the technology to models in mass production in 2027. Through a fabless original equipment manufacturer model based on full-stack SDV solutions, 42dot’s Pace Car is being developed to offer an end-to-end process for designing SDV concepts, verifying them and applying them to mass-produced models.

42dot, which operates global R&D centers in the United States, Poland, Australia and China with its headquarters in Korea, said that rather than focusing on short-term performance, it aims to strengthen its competitiveness in mobility software by securing mid- to long-term technological sovereignty and key global talent.

“As an essential partner in future mobility technology, we will continue to pursue sustainable growth,” said a 42dot official.