LG shares surged more than 6% after the company announced a major expansion of its partnership with Nvidia, signing a memorandum of understanding to collaborate on humanoid robots, AI factories, and smart mobility. Investors welcomed the agreement as another sign that LG is positioning itself at the center of the rapidly growing physical AI industry.
The expanded partnership builds on previous cooperation between the two companies and reflects Nvidia’s broader strategy of extending its AI platform beyond data centers into robotics and industrial automation.
Humanoid Robots Move Closer to Reality
As part of the agreement, LG plans to unveil a next-generation humanoid robot in the first quarter of 2027 powered by Nvidia’s Jetson Thor robotics processor and built using the Isaac GR00T humanoid foundation model. The companies also plan to deploy wheel-based industrial robots at LG’s manufacturing facilities as part of real-world production testing.
The collaboration highlights Nvidia’s ambition to become the dominant computing platform for physical AI, supplying both the hardware and software needed to power intelligent robots.
Building AI Factories
Beyond robotics, LG and Nvidia will jointly develop next-generation AI factories designed to automate manufacturing through AI, digital twins, and accelerated computing.
LG also plans to build an AI factory demonstration site based on Nvidia’s Vera Rubin platform before expanding the technology across its broader manufacturing operations. The initiative is expected to improve production efficiency while supporting AI-driven industrial automation.
Expanding Into Smart Mobility
The partnership also covers intelligent transportation.
LG intends to develop a next-generation AI-defined vehicle platform using Nvidia’s DRIVE Hyperion architecture, expanding cooperation in autonomous driving, in-vehicle AI, and software-defined vehicles. The agreement further strengthens LG’s automotive technology business while deepening Nvidia’s presence in the global mobility market.
Investors Bet on Physical AI
The market reacted positively to the announcement, with LG shares gaining more than 6% during trading as investors increasingly view robotics and industrial AI as Nvidia’s next major growth opportunity beyond GPUs.
As demand for physical AI accelerates, partnerships between industrial manufacturers and AI platform providers are becoming increasingly important. For LG, the expanded collaboration provides access to Nvidia’s leading AI ecosystem, while Nvidia gains another major partner to help bring humanoid robots and AI-powered factories into commercial deployment.
