THE APEX TIMES
NVIDIA and LG Group move to build an “AI factory” spanning robots, mobility and data centers
LG and NVIDIA say they are turning the physical world into training ground for physical AI, linking simulation, data generation, edge deployment, and factory-scale digital twins. LG also outlines broader collaboration in robotics, autonomous driving, and sovereign AI, without providing deal size or timing.
NVIDIA is deepening its push into “physical AI” by expanding a partnership with LG Group that is intended to move artificial intelligence from lab environments into factories, vehicles, and real-world operations. In a June 7 announcement, the companies said they are building an AI factory designed to serve as the foundation for LG’s next wave of AI-driven businesses across robotics, autonomous driving, AI infrastructure, and GPU cloud services.
The concept, as described by NVIDIA, is not a single product but an integrated workflow. LG and NVIDIA say they will connect AI model development with physical AI data generation, robot simulation and training, edge deployment, and factory-scale digital twins, so systems can be trained and validated before they are deployed in production settings.
In robotics, LG Electronics is developing home-based robots such as CLOiD, and the companies plan to use NVIDIA’s Isaac simulation and Isaac Lab frameworks to simulate, train, and validate cobots in physically accurate virtual environments. NVIDIA also said LG is exploring use of Isaac GR00T, which NVIDIA describes as a reasoning vision-action language model for robot systems, and that the teams plan to jointly develop reference robots intended to sit within the Isaac GR00T ecosystem.
Because robotics projects can be limited by training data, NVIDIA said LG Electronics is also developing a physical AI data factory. The goal is to “turn compute into data,” providing high-quality training material for robotics and industrial AI projects using NVIDIA Cosmos world foundation models for synthetic data generation and augmentation. NVIDIA further said LG Innotek will contribute robotics components, including sensing solutions optimized for NVIDIA’s development environments and GPU architecture, while LG CNS is building an ecosystem meant to make it easier for manufacturers and logistics operators to adopt AI robots by integrating NVIDIA’s robotics technologies and model tooling into LG CNS’s PhysicalWorks industrial robot platform.
On the data center side, the partnership targets next-generation AI factory infrastructure, where power and thermal management can be as important as computing. NVIDIA said LG is expanding cooperation in areas including certification cooperation for cooling solutions used in AI factories, naming cooling distribution units (CDUs) and cold plates, and also pursuing technical collaboration on prefabricated modular design technologies intended to align with NVIDIA’s DSX AI factory platform.
DSX is NVIDIA’s reference platform for building AI factories, which NVIDIA positions as enabling faster deployment of scalable, high-performance supercomputing infrastructure. NVIDIA said the LG Group effort includes work with LG Electronics and LG Energy Solution through LG Uplus, with plans to build scalable, power-efficient AI factories based on DSX. NVIDIA also said LG CNS plans to build similar AI factories powered by NVIDIA GPUs aligned with DSX, and that LG Energy Solution plans to collaborate on emerging 800 volt direct current data center energy solutions, aligned with NVIDIA’s BESS self-qualification guidelines.
Mobility collaboration is also central to the expansion. NVIDIA said LG Electronics will align its advanced driver-assistance systems (ADAS) and in-vehicle AI systems with NVIDIA DRIVE, including the DRIVE Hyperion architecture for sensor, compute, and software alignment, and will use NVIDIA DRIVE AGX accelerated compute for future mobility applications such as AI-powered cockpits and edge AI processing. NVIDIA also said LG Innotek is working on next-generation autonomous driving components engineered for NVIDIA architecture.
The scope, but also the limits, were reflected in an LG Electronics investor call transcript. When asked about discussions with NVIDIA, LG said it was expanding a traditional collaboration into a “more strategic partnership and physical AI,” describing cooperation themes in robotics, AI data centers, and mobility, as well as forward-looking joint R&D initiatives. LG added that it could not disclose specific details at the time, and the announcement itself did not provide financial terms, contract values, or deployment timelines for the AI factory or mobility programs.
What to watch next is whether LG’s internal projects translate into measurable deployments. Investors and industry watchers will likely focus on milestones that indicate the AI factory workflow is working end-to-end, including the rollout of modular DSX-aligned infrastructure, progress on reference robots built around Isaac GR00T, and updates on how broadly LG can adopt its sovereign AI model EXAONE with NVIDIA’s tooling for enterprise and industrial use cases.
Why It Matters
- The partnership targets a bottleneck for physical AI, translating training and simulation work into deployable systems in real industrial and mobility environments.
- DSX-aligned “AI factory” efforts suggest competition may increasingly hinge on end-to-end infrastructure, including cooling, power delivery, and deployment speed, not just chips.
- By emphasizing synthetic data and robot reference platforms, the collaboration aims to reduce the data and validation friction that has slowed physical AI projects.
- For NVIDIA, expanding beyond GPUs into factory-scale workflows and application tooling strengthens its role in how AI systems are built, trained, and operationalized.
Sources
Key Facts
- NVIDIA and LG Group said they are building an “AI factory” intended to connect model development, physical AI data generation, simulation and robot training, edge deployment, and factory-scale digital twins.
- LG Electronics plans robotics development using NVIDIA Isaac simulation tools (Isaac Sim and Isaac Lab) and is exploring Isaac GR00T for reasoning vision-action robot behavior.
- LG Electronics said it is developing a physical AI data factory to supply training data using NVIDIA Cosmos world foundation models for synthetic data generation and augmentation.
- The companies said they are aligning AI factory infrastructure with NVIDIA’s DSX platform, including cooperation around cooling components such as CDUs and cold plates and modular prefabricated designs for liquid-cooled AI factories.
- For mobility, NVIDIA said LG Electronics will align ADAS and in-vehicle AI systems with NVIDIA DRIVE Hyperion and use DRIVE AGX compute for future mobility applications.
- LG Electronics said in an earnings call transcript that it could not disclose specific details about NVIDIA discussions, despite describing broader cooperation across robotics, AI data centers, and mobility.
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