LG, Microsoft forge AI alliance as Koo, Nadella meet in Redmond

LG Group is deepening its AI alliances with global technology giants, forging strategic partnerships across its AI business while securing a string of supply opportunities for cooling systems and energy storage systems at major data centers — moves the conglomerate says will drive sharp growth in the years ahead.

LG Group Chairman Koo Kwang-mo met with Microsoft CEO Satya Nadella at Microsoft's headquarters in Redmond, Washington, on Monday (local time), signing a strategic partnership covering three areas: AI data centers, physical AI and AI transformation (AX).

The meeting drew LG's top leadership, including Kwon Bong-seok, chief operating officer of LG Corp.; Ryu Jae-cheol, CEO of LG Electronics; Hong Beom-sik, CEO of LG Uplus; Hyun Shin-kyun, CEO of LG CNS; and Jeong Su-heon, president of LG Science Park — a show of force meant to underscore the group's collective capabilities in AI.

LG discussed supplying cooling, power and IT infrastructure solutions in line with Microsoft's global AI data center expansion. The group said it plans to serve as a stable provider of core solutions as Microsoft scales up data centers worldwide.

In the near term, LG will supply large-capacity cooling solutions to AI data centers at key locations, with plans to broaden the partnership over the medium to long term to include prefabricated data centers.

The two companies will also use Microsoft's cloud infrastructure to advance LG's physical AI models and drive workplace transformation. LG plans to tap Microsoft's high-performance cloud to accelerate the development and training of AI models for manufacturing, logistics and mobility.

The partnership aims to build a virtuous cycle combining data gathered from LG's manufacturing sites with Microsoft's cloud capabilities to speed up AI model training, boosting LG's competitiveness in physical AI.

LG also plans to roll out Microsoft's AI and cloud platform — including Microsoft 365 E7: Frontier Suite with Copilot — across its entire office workforce, redesigning its work environment with security, cost and operational efficiency in mind as it pursues a broad AI-driven transformation of how its employees work.

In addition, LG Electronics' 2.5 MW large-capacity coolant distribution unit (CDU) and LG Energy Solution's battery energy storage system (BESS) received specification approval from Nvidia on Monday, giving the two companies a foothold in the North American AI data center market.

Nvidia grants DSX Ready certification only to products that meet its requirements. LG Electronics had previously received Nvidia approval for its 600 kW and 1 MW CDU products, and the latest certification further cements its standing as a top-tier player in the global liquid-cooling market. LG Energy Solution became the only Korean battery maker to join Nvidia's DSX Ready program.