LG is expanding the scope of its artificial intelligence (AI) business cooperation with Microsoft (MS) across all directions, including AI data centers, physical AI, and AI transformation (AX). Following Nvidia, LG plans to strengthen collaboration with MS to secure leadership in the AI business.
LG announced on September 22 that Chairman Koo Kwang-mo met with MS CEO Satya Nadella at MS headquarters in Redmond, Washington, and signed a strategic partnership. Chief executive officers of major LG affiliates accompanied Koo and held a Top Management Meeting (TMM).
Kwon Bong-seok, LG chief operating officer and vice chairman; Ryu Jae-chul, LG Electronics CEO; Hong Bum-shik, LG Uplus CEO; Hyun Shin-gyoon, LG CNS CEO; and Jung Soo-heon, LG Sciencepark CEO, attended the meeting. This is interpreted as a strategy to combine the capabilities of LG Group in the AI field to maximize business synergy with MS.
At the meeting, LG and MS discussed three cooperation plans to accelerate the development of the AI ecosystem.
In the AI infrastructure sector, LG plans to supply cooling, power, and information technology (IT) solutions to support MS data center expansion. LG is expected to establish itself as a practical supply partner providing key solutions for MS AI infrastructure.
The two companies plan to introduce large-capacity cooling solutions to AI data centers built at key strategic hubs. They also plan to expand the scope of cooperation to prefabricated data centers, which have the advantage of enabling rapid expansion by assembling prefabricated modules on-site.
The two companies will also accelerate collaboration in physical AI. LG plans to utilize MS high-performance cloud infrastructure to develop models in physical areas such as manufacturing, logistics, and mobility, and to speed up learning.
In addition, LG plans to enhance physical AI competitiveness by utilizing the infrastructure and platforms of both companies to build a “data flywheel” that creates a virtuous cycle of manufacturing site data accumulation and model learning.
Cooperation in the AX sector will also expand. To transform into an AI company, LG will introduce MS AI and cloud platforms, including Copilot, for office workers across the group.
Through this, LG plans to innovate the work environment based on AI. LG intends not to simply introduce AI tools, but to establish a way of working with AI by designing a work environment optimized in terms of security, cost, and operation.
LG materialized practical collaboration plans after key affiliate executives met with CEO Nadella in December last year to begin full-scale discussions on strategic cooperation. As Chairman Koo met directly with CEO Nadella to discuss the overall AI field, business progress is expected to gain speed.
Previously, Koo met with Nvidia CEO Jensen Huang in the U.S. last month and agreed to cooperate in the fields of robotics, AI factories, and mobility. As LG strengthens its AI alliance with global big tech companies, securing AI growth engines is expected to accelerate.
