Kwang-mo Koo, Chairman of LG Group, met with Satya Nadela, CEO of Microsoft, to strengthen the "AI alliance." The strategy aims to accelerate efforts to capture the global AI market by expanding cooperation across next-generation AI data centers, physical AI, and AI transformation (AX).
According to LG on the 22nd, Koo (Chairman) held a Top Management Meeting (TMM) with CEO Nadela at Microsoft’s headquarters in Redmond, Washington, U.S., on the 21st (local time) and signed a strategic partnership agreement.
The meeting included key executives from LG: Bong-seok Kwon, COO of LG Corp.; Jae-cheol Ryu, CEO of LG Electronics; Beom-sik Hong, CEO of LG Uplus; Shin-kyun Hyun, CEO of LG CNS; and Soo-heon Jung, Representative Director of LG Science Park. The strategy aims to maximize business synergies with Microsoft by consolidating group-level business capabilities in future AI fields such as AI data centers and physical AI through the "One LG" system.
Both companies discussed three strategic cooperation measures on that day to accelerate the development of the AI ecosystem.
First, in the field of AI data center infrastructure, both parties agreed to jointly explore business opportunities for supplying LG’s cooling, power, and IT infrastructure solutions in line with Microsoft’s global data center expansion. LG plans to establish itself as a practical partner that reliably supplies core solutions required for AI data centers and supports Microsoft’s global AI infrastructure expansion.
In the short term, the companies will concretize opportunities to supply large-scale cooling solutions centered on AI data centers being built at key strategic hubs. In the medium to long term, they plan to expand cooperation to prefabricated (Prefab) data centers that allow for rapid construction and expansion.
The group is also accelerating AX efforts. LG is promoting its transformation into an "AI-native" company and plans to introduce Microsoft’s AI and cloud platforms, including Copilot, for all office employees across the organization. The goal goes beyond simply introducing AI tools; it aims to build optimized work environments in terms of security, cost, and operations, and to innovate the very way of working centered on AI.
Cooperation will also be expanded in the field of physical AI. LG plans to actively utilize Microsoft’s high-performance cloud infrastructure to accelerate the development and learning speed of AI models in tangible areas such as manufacturing, logistics, and mobility. The companies will also collaborate to build a "Data Flywheel" that creates a virtuous cycle of accumulating manufacturing site data and model learning. The strategy is to accelerate the development and commercialization of physical AI technologies by combining both companies’ infrastructure and platforms.
An LG official stated, "This cooperation was concretized through months of practical discussions and exchanges between executives following the formalization of strategic cooperation talks between the two companies at a tech show held at Microsoft’s headquarters last December."
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