LG Electronics and Microsoft Expand AI Partnership to Develop AI Data Centers and Physical AI Solutions

LG Electronics Inc., a major South Korean tech company, said Tuesday it has agreed with Microsoft Corp. to expand their strategic partnership in artificial intelligence (AI).

LG Chairman Koo Kwang-mo met with Microsoft Chief Executive Officer (CEO) Satya Nadella at the U.S. tech giant's headquarters in Washington on Monday (local time), with top executives from LG's major affiliates also in attendance.

Under the partnership, the two companies will collaborate to commercialize AI data centers as Microsoft expands its AI data center footprint globally.

In the near term, the companies will explore the possibility of supplying high-capacity cooling solutions for Microsoft's key strategic data center locations.

LG Electronics already offers a portfolio of data center thermal management products, including chillers, coolant distribution units and air conditioning systems.

AI data centers, which house large numbers of high-performance graphics processing units (GPUs), consume significantly more power and generate far more heat than conventional data centers.

The two companies are also expanding their collaboration in physical AI, which applies AI technologies to manufacturing, logistics and mobility.

LG will leverage Microsoft's high-performance cloud infrastructure to accelerate the development and training of AI models designed to operate in physical environments.