LG Electronics is expanding its physical AI business through a broader technology partnership with Nvidia, pursuing joint projects in manufacturing robots, AI data centers and mobility. The collaboration, detailed during the company's second-quarter earnings call, combines LG's robotics hardware and manufacturing expertise with Nvidia's physical AI technology stack to build an integrated robotics business spanning hardware, software and core components.
Kim Chang-tae, executive vice president and CFO of LG Electronics, said the two companies are advancing collaborative projects that integrate LG's capabilities with Nvidia's AI platform. "We are pursuing joint projects that integrate LG's robotics hardware technologies and manufacturing expertise with Nvidia's physical AI technology stack," Kim said.
Manufacturing robots and data factories
LG and Nvidia are working on manufacturing robots from the proof-of-concept stage through deployment in real-world industrial environments. The work includes developing robot data factories, enhancing robot foundation models, and creating simulation and validation platforms. The collaboration follows a high-level meeting in Seoul between LG Chairman Koo Kwang-mo and Nvidia CEO Jensen Huang, where the two agreed to expand long-term cooperation across physical AI, AI infrastructure and mobility.
AI data center cooling and mobility computing
In the AI data center sector, the companies are integrating Nvidia's platform technologies with LG's infrastructure solutions and jointly developing next-generation high-density cooling technologies. Several of LG's coolant distribution unit products have already received Nvidia certification. In mobility, they are evaluating next-generation high-performance computing platforms and building development environments for future automotive applications. CFO Kim said broader strategic cooperation at the ecosystem level remains a possibility. "A strategic partnership at the platform ecosystem level can certainly be considered," he said.
Integrated robotics business and actuator production
LG Electronics recently established a Robotics Business Center reporting directly to the CEO to oversee its physical AI initiatives. The unit manages the full robotics value chain, including business development, supply chain, manufacturing and sales. Bae Seok-hyung, head of robotics sales, said the company's ultimate goal is to become "a customized physical AI solution provider capable of integrating robotics hardware, core components, data platforms, AI agents and robot operating systems."
The company is drawing on technologies from across LG Group - combining the EXAONE large language model from LG AI Research Institute with software platforms from LG CNS, vision and robotic hand technologies from LG Innotek, and battery technologies from LG Energy Solution. "We are bringing together capabilities across the group under the One LG strategy," Bae said. "In addition to Nvidia and other global technology companies, we are also advancing cooperation with competitive Chinese robotics companies."
Production of robotic actuators, key motion-control components in robot joints, has entered the manufacturing stage. LG established a pilot production line at its Changwon facility in the first half of the year and has begun producing initial volumes. It is validating manufacturability and quality stability while preparing additional automation equipment for the second half. The company aims to grow the actuator business into a meaningful earnings contributor by 2030 and recently signed a memorandum of understanding with Robotis to expand technology and business cooperation.
Why this matters for executives and strategy
LG's move signals how large manufacturing companies are structuring physical AI businesses by combining in-house hardware capabilities with external AI platforms. The partnership model, the creation of a dedicated robotics unit reporting to the CEO, and the cross-group technology integration provide a concrete example of strategic AI execution. For executives tracking how corporations embed AI into physical products and supply chains, resources like AI for Executives & Strategy offer ongoing analysis of these shifts.
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