LG Electronics, Microsoft sign strategic partnership on AI agents

LAS VEGAS – South Korea’s top home appliance maker LG Electronics Inc. has signed a strategic partnership with US tech giant Microsoft Corp. to combine their industry-leading technologies and lead artificial intelligence innovations.

Under the partnership, the two companies will collaborate on the development and advancement of AI agents, including one codenamed Q9, for use in various spaces ranging from homes to vehicles, hotels and offices, LG Chief Executive Cho Joo-wan said on Tuesday during a press event, one day before the opening of CES 2025.

Their collaboration will create empathetic and affectionate AI services, which are “less artificial and more human,” he said in a keynote speech at the LG World Premiere event.

The CEO, who also goes by his English name William Cho, said the two companies’ cooperation will go beyond AI agents into the business-to-business (B2B) sector, including AI-powered data centers.

“Our ultimate goal is simple yet profound: to leverage AI as a means to create holistic customer value, in whichever space you are,” he said. “Irrespective of how AI transforms our lives, one thing will never change: our promise of Life’s Good. With this unwavering commitment, we will continue to strive for industry-leading experiences for our customers.”

ACQUISITION OF ATHOM

Judson Althoff, executive vice president and chief commercial officer at Microsoft, said: “At Microsoft, we believe AI will fundamentally change the way we live and work, and we could not be more excited to partner with LG Electronics – the pioneers of smart, connected spaces – to integrate AI into life’s everyday experiences.”

Having already incorporated Microsoft's speech recognition and synthesis technologies in its AI home hub project to understand diverse accents, pronunciations and colloquial expressions, LG aims to co-develop a new AI agent that not only interacts with customers but also predicts their needs and preferences.

LG said more than 700 million LG smart products and connected devices in use worldwide are its greatest asset to expand into the AI era.

With last year’s acquisition of Athom B.V., a Netherlands-based home automation company, LG said it now offers seamless connectivity with Internet of Things (IoT) devices in partnership with over 170 global brands.

LG said it will also advance its AI agent, LG Furon, which combines the power of generative AI built on large language models with real-time spatial sensing and insights into customer lifestyle patterns.

LG’S HVAC, CHILLER SYSTEM AT DATA CENTERS

LG and Microsoft said they will also collaborate in the rapidly growing AI data center sector amid the AI boom.

With LG’s thermal management systems and advanced chiller technologies optimized for AI data centers, the partnership aims to enhance energy efficiency in Microsoft’s AI infrastructure.

At the press conference, LG CEO Cho highlighted innovative initiatives like the LG Smart Cottage, a compact modular home that integrates AI-powered appliances and LG’s advanced heating, ventilation and air conditioning (HVAC) systems.

LG TV WITH MS COPILOT, PARTNERSHIP WITH XBOX, XBOOM

In Las Vegas, LG said its 2025 smart TVs will have access to Microsoft’s Copilot AI assistant.

LG said its access to Copilot will allow users to “efficiently find and organize complex information using contextual cues.”

LG and Microsoft have also teamed up to bring Xbox gaming to smart screens.

LG said the partnership will allow players access to hundreds of games with the Xbox app on LG Smart TVs.

Separately, the Korean company unveiled its latest audio product line of Bluetooth speakers, LG xboom, created in partnership with multi-platinum musician and tech entrepreneur will.i.am.

LG said its xboom by will.i.am audio products are professionally tuned by will.i.am, delivering the xboom signature sound – characterized by a more balanced audio profile with warmer tones.

Write to Eui-Myung Park at uimyung@hankyung.com
In-Soo Nam edited this article.