In a nutshell: After leaving the smartphone business three years ago, LG is now apparently scheming a flashy return thanks to an AI-focused partnership with Samsung. The two Korean companies are developing some “revolutionary” AI tech based on the newly introduced ixi-O digital assistant for LG Uplus customers.

Next year’s Mobile World Congress could see the introduction of the first “real AI phone,” a project Samsung and LG are now secretly working on. Unnamed industry sources told KED Global that this new smartphone will include a highly advanced digital assistant, with AI technology designed to go beyond the simplistic integration of some third-party AI assistant service in a pre-existing mobile device.

LG Uplus, a South Korean mobile network operator, introduced its ixi-O AI call assistant technology earlier this month. The ixi-O agent can provide AI services such as answering and summarizing phone calls, converting audio into text, and detecting scam attempts. The technology works entirely on-device and is LG’s attempt to enter the burgeoning AI business.

Despite being part of the LG conglomerate, LG Uplus will not make new smartphones. Instead, the company will provide its ixi-O agent to Samsung to integrate into select Galaxy devices. According to the insiders, the two companies are working on a tighter knit between AI capabilities and smartphones.

With Samsung’s powerful Galaxy hardware, ixi-O will provide end customers with a “revolutionary” AI experience. LG Uplus, South Korea’s smallest mobile carrier, is making the new AI phone exclusive to its subscribers. The current version of ixi-O is available on Apple iPhone 14 devices.

Even if LG Uplus plans to manage its jointly developed AI phone as a strictly Korean affair, Samsung could have broader plans. The manufacturing giant might be interested in bringing the “Galaxy ixi-O” digital assistant to other models, working in partnership with more mobile carriers to offer the new AI tech outside South Korea.

LG Uplus is investing heavily in AI ventures. According to Chief Executive Hwang Hyeon-sik, the company plans to sink up to 3 trillion won (or $2.1 billion) into AI tech while seeking high-profile partnerships with Google, Amazon, and other major technology corporations.