LG and Nvidia strike huge deal to build massive AI robot factory
LG is fundamentally consolidating its robotics and artificial intelligence efforts. On July 1, 2026, the company established the new Robotics Business Center in Seoul. This new business unit brings together all processes, from development and sales to manufacturing. The goal is a major expansion of physical AI, meaning systems that interact directly with their real-world environment through advanced robotics.
The internal restructuring is part of a broad global alliance with Nvidia. Together, the two companies are building extensive AI infrastructure. A central element is a large-scale data factory in Seoul that is scheduled to be completed this year. This AI data factory will generate high-quality operational data as well as synthetic data created with Nvidia Cosmos models. This data will feed directly into LG's Robot Foundation Model to prepare future generations of machines more precisely for real-world tasks.
The partnership spans several business areas across the entire LG Group. For the development of home robots, LG is relying on the Nvidia Isaac Sim and Isaac Lab frameworks to test the devices in virtual environments before real-world deployment. The Nvidia Isaac GR00T model is also being integrated, which is intended to enable robots to perform human-like reasoning and logical actions. For the industrial and commercial sector, the capabilities of subsidiaries Robostar and Bear Robotics are being more closely integrated under the One LG Solution strategy.
Beyond robotics, the pact also covers the modernization of data centers and mobility solutions. LG and Nvidia are jointly developing liquid-cooled, modular AI factories based on the Nvidia DSX standard. LG Uplus is contributing new large-scale data centers, while LG Energy Solution is providing specialized energy solutions. In the automotive sector, the partners are working on integrating driver assistance systems and autonomous driving functions based on the Nvidia Drive platform.
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