Is LG Electronics partnering with Nvidia on AI and robotics?

South Korean technology firm LG Electronics said on Wednesday that it has been in discussions with Nvidia over potential cooperation in robotics, AI data centres, and mobility.

The development follows a visit by Madison Huang, a senior director for physical AI platforms at Nvidia, to LG Electronics and other South Korean companies, according to reports in Korean media.

Potential collaboration across AI and robotics

LG Electronics indicated that talks with Nvidia are focused on future-facing technologies.

These include robotics, artificial intelligence infrastructure, and mobility solutions.

The discussions highlight growing collaboration opportunities between hardware manufacturers and AI chipmakers.

The visit by Huang, who is also the daughter of Nvidia CEO Jensen Huang, has drawn attention in South Korea’s technology sector.

According to Korean media reports, the meetings were part of broader industry engagement efforts.

Semiconductor stocks retreat after recent rally

The announcement came as semiconductor stocks declined sharply on Tuesday.

Shares of Nvidia fell about 1.5%, reversing part of the previous session’s gains when the stock had closed at a record high after rising 4%.

The chipmaker had recently broken out of a prolonged trading range between $165 and $195.

This move had underscored the strength of its recent rally.

However, the latest selloff extended across the semiconductor sector. Advanced Micro Devices dropped 3.1%, while Broadcom declined 3.29%.

Arm Holdings slid about 6.7%.

Other companies, including Intel, Micron Technology, and Applied Materials, also posted notable losses.

The downturn follows a strong run for chip stocks.

The Philadelphia Semiconductor Index had climbed nearly 50% from its late-March low.

The rally was largely driven by optimism surrounding AI infrastructure spending.

OpenAI concerns weigh on investor sentiment

Investor sentiment shifted after a report by The Wall Street Journal highlighted concerns about OpenAI.

OpenAI missed internal targets for new users and revenue.

The report also flagged concerns among executives about whether the company can sustain heavy spending on data centre infrastructure.

OpenAI’s Chief Financial Officer Sarah Friar told leadership she was worried the company might not meet future computing contract obligations if revenue growth does not accelerate.

Board members have also increased scrutiny of data centre deals and questioned CEO Sam Altman’s strategy to secure additional computing capacity.

OpenAI acknowledged its aggressive investment strategy, stating it was “buying as much compute as we can.”

AI investment outlook under scrutiny

Nvidia, AMD, and Broadcom all have supply agreements with OpenAI.

This makes them particularly sensitive to any shift in the company’s outlook.

Nvidia has also made significant financial commitments to OpenAI.

The chipmaker invested $30 billion in the company’s latest funding round, although it scaled back an earlier plan to invest as much as $100 billion.

Rivals such as Anthropic are gaining traction in coding and enterprise markets.

At the same time, AI models from Alphabet have received strong reception.

Altman and Friar pushed back on concerns about internal divisions.