LG Electronics is constructing an end-to-end physical AI business by deepening its partnership with Nvidia and expanding cooperation with Chinese robotics corporations, executives disclosed during the company's second-quarter earnings conference call on July 301,2.
The company's goal is to become a provider of customized physical AI solutions that integrate robot and core-component development and manufacturing with data platforms, AI agents, and robot operating systems, according to Bae Seok-hyeong, head of Robotics sales at LG Electronics. "The ultimate goal of LG Electronics' robotics business is to become a provider of customized physical AI solutions that integrate not only the development and production of robots and core components, but also data platforms, AI agents, and robot operating systems," Bae said.
To centralize execution, LG Electronics has established a new Robotics Business Center that oversees the entire robotics value chain, from identifying business opportunities and building and managing the supply chain to manufacturing and sales. Bae said the objective is to "consolidate dispersed core capabilities and establish a complete business structure".
The Nvidia partnership spans multiple domains. Kim Chang-tae, executive vice president and CFO of LG Electronics, said the two companies are advancing collaborative projects that combine LG's robotics and manufacturing capabilities with Nvidia's physical AI technology stack. The joint work covers manufacturing robots from proof-of-concept through deployment in real-world industrial environments, as well as the development of robot data factories, enhancement of robot foundation models, and creation of simulation and validation platforms. In the AI data center sector, the companies are integrating Nvidia's AI data center platform technologies with LG's capabilities.
LG Electronics is also consolidating technologies from across LG Group affiliates under a "One LG" framework. The plan calls for leveraging EXAONE, a large-scale AI model from LG AI Research; LG CNS's software platform; LG Innotek's vision technology; and LG Energy Solution's battery capabilities to create synergy in the physical AI business.
Beyond Nvidia, LG Electronics is materializing cooperation with competitive Chinese robotics corporations, though the company said discussions with partners are ongoing and that it will disclose additional details once they are finalized.
ANALYSIS The strategy positions LG Electronics not as a standalone robotics hardware maker but as a vertically integrated physical AI solutions provider — combining in-house component manufacturing, affiliate AI models and software, and external partnerships with Nvidia's compute and simulation infrastructure. The explicit inclusion of Chinese robotics partners alongside Nvidia signals LG is building supply-chain and technology relationships across geopolitical lines to cover the full spectrum from AI silicon to end-market deployment.