South Korean tech giant LG Electronics Inc. announced on Tuesday that it has signed an agreement with Microsoft to deepen their strategic collaboration in artificial intelligence. On Monday, LG Group Chairman Koo Kwang-mo met with Microsoft Chief Executive Officer Satya Nadella at the U.S. tech firm's headquarters in Washington, with senior executives from LG's major subsidiaries also in attendance.

Under the partnership, as Microsoft expands its global footprint of AI data centers, the two companies will jointly drive the commercialization of AI data center operations. In the near term, they will explore supplying large-scale cooling solutions for Microsoft's core strategic data center sites. LG Electronics Inc. already offers a full lineup of data center thermal management products, including chillers, coolant distribution units, and air conditioning systems.

AI data centers, packed with high-performance graphics processing units (GPUs), consume significantly more power and generate far greater heat than conventional data centers. The two firms will also broaden their collaboration in physical AI, a field that applies AI technology to manufacturing, logistics, and mobility applications. LG Electronics Inc. plans to leverage Microsoft's high-performance cloud infrastructure to accelerate the development and training of AI models designed for real-world, physical environments.