LG Electronics has announced a major acquisition that could usher in the homes of tomorrow by securing an 80% stake in smart home platform company Athom.

The Dutch firm known for its 'Homey' smart home hub, brings to the table a robust platform that integrates with over 50,000 devices.

Its acquisition by the consumer electronics giant will see LG integrate Athom’s smart home hub with its Gen AI-enabled LG ThinQ platform. 

AI-powered smart homes

A smart home features dozens of interconnected devices and systems that can be remotely controlled and automated, enhancing convenience, energy efficiency, and security. 

AI augments these capabilities by introducing adaptive learning and predictive behaviours. For instance, it can analyse occupants' patterns, anticipate their needs, and thus optimise things like energy use and evern security. This results in a highly personalised living environment.

LG’s acquisition of Athom is part of its plan to scale up the ecosphere of connected devices of a smart home, in the belief that the insights of all of a home's devices will be needed to be connected to usher in a truly personalised, AI-powered smart home.

This is due to Athom’s open ecosystem enabling LG to incorporate third-party devices from around 1000 applications and services into its control, providing LG with insights into customer usage patterns when interacting with devices not their own, to still deliver eclectic personalised services.

“The acquisition of Athom is a cornerstone for our AI home business,” said Jung Ki-hyun, Executive Vice President and Head of LG’s Platform Business Center. “By leveraging the synergy between the two companies, we will expand our open ecosystem and external integration services, aiming to provide customers with more diverse and multidimensional space experiences.”

This integration aims to create usher in LG’s AI home, which envisions customers engaging with Gen AI to manage all the connected appliances, before branching out into commercial spaces realising the concept of ‘Intelligent Space.’

LG’s AI ambitions 

LG's move reflects a broader shift in its business model. The well-known consumer goods manufacturer is seeing AI as its opportunity to transition from a hardware-centric approach to a software and platform-based strategy, echoing earlier forays into the TV platform market with webOS and its acquisition of Alphonso.

LG CEO William Cho emphasised the company's vision: “LG is evolving into an intelligent space solutions company that connects and expands experiences in various living spaces. We will continue to make strategic investments to shift our business paradigm, as evidenced by our successive entries into platform-based appliance services and solutions such as the webOS advertising platform and AI home.”

As the smart home landscape continues to evolve, LG's latest acquisition signals its intent to influence what it believes should be the future of connected living spaces and the elements it contributes to it. 

With a focus on open ecosystems and AI-driven personalisation, the company could set new standards for smart home technology, offering users unprecedented levels of comfort, efficiency, and customisation in their daily lives.

This sees LG to transform into a 'Smart Life Solution Company'. The integration of Athom's open platform with LG's AI technology is expected to accelerate the development of more sophisticated, user-centric smart home ecosystems.

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