LG and Nvidia Build AI-Powered Robot Factory in Seoul

LG and Nvidia have signed a strategic agreement to jointly develop physical AI, technology that lets robots understand and move through the real world the way large language models understand text. Seoul is set to host new infrastructure that brings design, testing and mass production of robots under one roof.

The heart of the agreement is the Robotics Business Center, launched by LG on July 1, 2026. It's a new organizational unit meant to shorten the path from engineering concept to finished product, bringing together teams responsible for research, mechanical design, control software and assembly lines under one structure.

A data factory as the foundation

Alongside the business center, LG is building a large-scale AI data factory in Seoul, with completion planned for 2026. This is where the models controlling robot movement will be trained and tested before being deployed on real production lines or in customers' homes.

Nvidia is supplying the entire simulation software layer for the project. The Cosmos model generates synthetic data that lets robots be trained without collecting millions of hours of real-world footage. Isaac Sim and Isaac Lab are used to test robot behavior in virtual environments before any physical unit makes a single move.

What Isaac GR00T can do

A key piece of the puzzle is the Isaac GR00T model, which Nvidia describes as a system that gives robots reasoning close to human-like. In practice, that means the ability to interpret ambiguous commands and adapt to a changing environment, rather than simply executing rigidly programmed sequences of movements.

On top of that comes the Nvidia Drive platform, used until now mainly in driver-assistance systems and autonomous driving, which LG and Nvidia want to adapt for mobile industrial and logistics robots as well.

Next-generation modular factories

The production plants themselves will be built in a modular, liquid-cooled format, following the Nvidia DSX standard designed for densely packed AI computing power. This design allows production to scale faster and lets new factories be sited closer to end markets, rather than building single, giant plants from scratch.

The priority application areas LG and Nvidia list are home robotics, the industrial and commercial sector, mobility, and the modernization of existing data centers to handle AI-related workloads.

What it means for the market

The agreement fits a broader trend in which consumer and industrial electronics makers are teaming up with AI chip suppliers so as not to fall behind competitors building their own robotics ecosystems. For LG, it's a chance to shift part of its business away from traditional home appliances and toward service and industrial robotics, where margins and growth prospects are far higher.

For Nvidia, it's further proof that the company isn't limiting itself to selling data-center GPUs, but is building a complete technology stack, from simulation, through control models, to factory-building standards, meant to make it an indispensable partner for every company entering AI-driven robotics.

Sources: Notebookcheck.pl (notebookcheck.pl)