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LG Taps Defense Unit for AI Expansion as Revenue Claims Raise Questions

The company seeks military applications while touting unverified B2B contracts
South Korea
l 079550.KO l 003550.KO Mid and Small Cap 2000
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LG Group is enlisting defense contractor LIG Nex1 to commercialize its Exaone artificial intelligence model, marking the conglomerate’s latest effort to monetize AI investments beyond its consumer electronics business.

LG AI Research confirmed technical reviews are underway with LIG Nex1 across defense applications including platform advancement, research data support, and automated data processing. The collaboration represents an internal partnership within the broader LG ecosystem, though LIG Nex1 operates under separate ownership through LIG Holdings.

The defense push comes as LG aggressively promotes its B2B AI prospects. Lee Hwa-young, head of AI business development at LG AI Research, recently claimed the unit has secured over 100 billion won ($75 million) in business-to-business contracts, though the company has not provided verification or detailed breakdowns of these agreements.

LG unveiled its Exaone 4.0 model last month, positioning the technology for applications spanning chatbots to medical diagnostics. The company has partnered with firms including London Stock Exchange Group and Friendly AI, while targeting expansion in healthcare and aviation sectors.

Defense applications could provide LG with higher-margin opportunities, though the sector demands rigorous security standards that may challenge the company’s consumer-focused AI development approach. LIG Nex1 has separately established partnerships with U.S. firms Shield AI and Northrop Grumman for advanced defense technologies.

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