LG Electronics (KRX:066570) has entered into a strategic partnership with Microsoft across the AI value chain, according to a Tuesday release.

The partnership will cover next-generation AI data centers, physical AI and AI transformation.

In AI data center infrastructure, the South Korean appliance and consumer electronics company will look to supply cooling, power and infrastructure solutions for Microsoft's global expansion.

LG will also leverage Microsoft's AI and cloud platforms for its knowledge workforce as part of its AI transformation.

For physical AI, LG will use Microsoft's high-performance cloud infrastructure in developing AI models for physical settings such as manufacturing, logistics and mobility.

Shares of LG Electronics rose over 6% in recent trade.