LG CNS (064400.KQ) said in a regulatory filing on the 22nd that it signed a Microsoft enterprise deployment contract with LG Electronics (066570.KS).
Under the contract, LG CNS will supply Microsoft's subscription-based cloud platform M365 and its generative AI service Copilot for use by LG Electronics employees. The contract is valued at 257.8 billion won ($185 million), equal to 4.2% of LG CNS's total revenue last year. The five-year term runs from November this year through October 2031.
Separately, LG CNS Chief Executive Hyun Shin-kyoon attended a meeting of top executives from LG Group and Microsoft held on the 21st local time at Microsoft's headquarters in Redmond, Washington. Also attending were LG Group Chairman Koo Kwang-mo, LG Vice Chairman Kwon Bong-seok, LG Electronics Chief Executive Ryu Jae-cheol, LG Uplus (032640.KS) Chief Executive Hong Beom-shik and LG Science Park Chief Executive Jung Soo-heon. Microsoft was represented by Chief Executive Satya Nadella. The two sides agreed to form a strategic partnership and expand cooperation in areas including the AI data center business.
