LG Electronics pushes for AI alliance with Microsoft

Cho Joo-wan, chief executive officer of LG Electronics Inc

South Korea’s LG Electronics Inc. is pursuing an artificial intelligence (AI) alliance with U.S. Microsoft Corp., which is expected to involve incorporating generative AI into LG Electronics’ appliances, according to industry sources on Thursday.

Cho Joo-wan, chief executive officer of LG Electronics Inc., is scheduled to meet Satya Nadella, CEO of Microsoft Corp., at the Microsoft CEO Summit in Seattle, the United States, taking place on May 14.

The meeting, which will mark the first face-to-face of its kind between the two CEOs, is likely to discuss the incorporation of generative AI into LG Electronics’ appliances.

“LG Electronics sells millions of appliances, wearables, and IoT devices worldwide,” said an industry insider. “By integrating generative AI into LG products and collecting and analyzing data, synergy can be achieved.”

Discussions are also expected to explore avenues to enhance LG Electronics’ productivity.

While LG Electronics already has manufacturing capabilities in various sectors including TV, home appliances, air conditioning, car electronics, and robotics, collaboration with Microsoft in AI could further boost productivity.

In the latter half of this year, LG Electronics plans to introduce its Industrial Autonomous AI Agent, which incorporates its EXAONE technology, into key subsidiary production facilities.

“If LG Electronics’ products and data converge with Microsoft’s technological prowess, both companies could lead in future businesses, including AI,” said another industry source.

Recently, global tech giants have been showing increased interest in LG Electronics.

In February, Meta Platforms Inc. CEO Mark Zuckerberg met with Cho in Seoul to discuss AI collaboration.

At the time, the possibility of integrating Meta’s large language model (LLM) Llama into LG Electronics appliances was discussed.

Satya Nadella, CEO of Microsoft Corp. [Photo by Yonhap]

During the shareholders’ meeting in March, Cho noted that “big tech companies are approaching LG Electronics first. Expanding on-device AI services could drive innovation in customer experience and business model creation.”

Cho is not only attending the Microsoft CEO Summit but is also participating in Non-Deal Roadshow (NDR) and LG Electronics Tech Conference events in the U.S.

It will be the first time for an LG Electronics CEO to directly participate in such corporate presentations. Cho is expected to personally explain LG Electronics’ vision to global chief investment officers of institutional investors.

LG Electronics has previously announced its vision to transition from a home appliance company to a smart life solutions company.

It is reported that global institutional investors are already showing interest in LG Electronics’ new businesses such as mobility, robotics, metaverse, and extended reality (XR).