LG Group is significantly expanding its strategic partnership with Microsoft to cover a wide range of AI initiatives, from next-generation AI data center (AIDC) infrastructure to physical AI and enterprise AI transformation (AX).
On September 21, LG Group Chairman Koo Kwang-mo and Microsoft CEO Satya Nadella held an executive meeting at Microsoft’s headquarters in Washington State, where they announced the partnership.
Key executives from LG Group, including LG COO Kwon Bong-seok, LG Electronics CEO Ryu Jae-cheol, LG Uplus CEO Hong Beom-sik, LG CNS CEO Hyun Shin-kyun, and LG Science Park CEO Jeong Soo-hun, also attended. The strategy aims to maximize business synergy with Microsoft based on the 'One LG' system that consolidates the group's business capabilities.
This partnership was finalized after several months of practical discussions and executive exchanges following a tech show held at Microsoft’s headquarters last December.
LG Group plans to explore business opportunities in the AI data center infrastructure sector by providing cooling, power, and IT infrastructure solutions. In the short term, they will supply large-scale cooling solutions to key AI data centers, while in the long term, they aim to expand collaboration into the prefab data center sector.
The enterprise-wide AI transformation (AX) will also accelerate. LG will implement AI and cloud platforms, including 'MS 365 E7: Frontier Suite' with Copilot, for its office staff. The goal is to design an optimized work environment from security, cost, and operational perspectives, establishing a new way of working with AI.
In the physical AI domain, LG will leverage Microsoft’s high-performance cloud infrastructure to accelerate the development of physical models in manufacturing, logistics, and mobility. Additionally, they plan to build a 'data flywheel' that promotes a virtuous cycle of data accumulation and model training to enhance their physical AI competitiveness.
* This article has been translated by AI.
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