LG is ramping up its efforts to build an artificial intelligence (AI) ecosystem in collaboration with major global tech giants. The company has forged a strategic partnership with Microsoft, encompassing a broad range of AI initiatives from AI data centers (AI DC) to Physical AI and AI transformation (AX). LG has also secured specifications to provide products for NVIDIA’s newly launched next-generation AI factory ecosystem, known as DSX Ready.
LG aims to maximize business synergy through its One LG initiative, which consolidates the group’s operational capabilities.
On Monday, LG Chairman Koo Kwang-mo visited Microsoft’s headquarters in Redmond, Washington, where he met with Microsoft Chief Executive Officer (CEO) Satya Nadella to formalize their strategic partnership during a Top Management Meeting (TMM).
Koo was accompanied by key executives, including LG Chief Operating Officer (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 head Jeong Soo-heon.
The two companies plan to explore business opportunities in the AI data center infrastructure sector, aligning LG’s cooling, power, and IT infrastructure solutions with Microsoft’s global data center expansion. LG aims to establish itself as a reliable supply partner by consistently providing essential solutions for AI data centers.
In the short term, both companies will focus on large-scale cooling solution opportunities centered around AI data centers in key strategic locations. Long-term plans include expanding their collaboration into the prefabricated (Prefab) data center sector, which allows for rapid expansion.
They also plan to accelerate collaboration in AI transformation. LG is pushing for a transition to an AI-native company and intends to implement Microsoft’s AI and cloud platforms, including Copilot, across its office staff to transform the work environment.
In the realm of Physical AI, LG plans to leverage Microsoft’s high-performance cloud infrastructure to enhance model development and learning speed in manufacturing, logistics, and mobility. The two companies have agreed to utilize their infrastructures and platforms to build a Data Flywheel that facilitates the accumulation of manufacturing site data and model training.
LG Electronics and LG Energy Solution have also received qualifications to supply products for NVIDIA’s AI ecosystem.
LG is intensifying its collaboration with NVIDIA, which is heavily invested in building an AI ecosystem.
LG Electronics’ 2.5-megawatt (MW) CDU product has been approved as an NVIDIA DSX Ready CDU. This product is a key component in the AI data center cooling solution market, serving as a large-capacity coolant distribution unit (CDU).
NVIDIA only approves products that meet the reference design requirements of the DSX AI Factory Platform. The DSX Ready program serves as a qualification initiative for partner products and solutions that fulfill these criteria. LG Electronics also received approval for its 600-kilowatt (kW) and 1 MW CDU products from NVIDIA in July and September, respectively.
LG Energy Solution will join the DSX Ready program as a battery energy storage system (BESS) company. Among the selected BESS partners, LG Energy Solution stands out as the only South Korean battery company, joining the ranks of Tesla and Hitachi Energy globally. The company meets NVIDIA’s DSX Ready requirements with its high-capacity lithium iron phosphate (LFP) battery-based JF2 AC Link product, which applies to AC energy storage solutions.
Both LG Electronics and LG Energy Solution expect that the approval of their products as NVIDIA’s DSX Ready CDU will enhance their credibility in the market and serve as a stepping stone to target global tech giants.
Lee Jae-sung, head of LG Electronics’ Energy Solution Business Division, emphasized that with this approval from NVIDIA, it will supply even more reliable and efficient cooling solutions to global tech giants and secure a leading position in the next-generation liquid cooling market.
An LG Energy Solution representative stated that joining the NVIDIA DSX Ready program showcases the competitiveness. As the role of ESS in AI data centers is expected to grow, it will seize opportunities based on the differentiated technology and local production capabilities.
