AI and cloud company MegazoneCloud said on Monday it will cooperate with Japan's AI avatar company AVITA to develop physical AI business models.

The two companies recently signed a strategic partnership agreement to jointly develop physical AI business models at MegazoneCloud's liaison office in Yeoksam-dong, Seoul.

Under the agreement, they will combine MegazoneCloud's cloud and AI capabilities with AVITA's AI avatar technology. They plan to develop physical AI services linked to autonomous robots and apply them across various industrial sites.

Unlike conventional robots that repeat pre-programmed movements, autonomous robots use AI to recognise surrounding situations, make judgments and act. AVITA is an AI avatar solutions company founded in 2021 by Osaka University robotics engineer Professor Hiroshi Ishiguro (이시구로 히로시), known for humanoid research.

Based on AI-linked cloud infrastructure and domestic and overseas sales networks, MegazoneCloud will support the development and business expansion of physical AI services that link AVITA's customer service offering AVACOM and education service AvaTraining with autonomous humanoids. AVITA will be responsible for advancing the services based on its AI avatar technology.

The companies plan to push for applying the services at various industrial sites, including unmanned retail checkout counters, department store customer guidance and insurance counselling training. They also plan to expand the scope of cooperation into major industries including finance and the public sector.

MegazoneCloud CEO Yeom Dong-hoon (염동훈) said, "MegazoneCloud has rapidly verified the possibilities of new technology areas and expanded the market in cloud and AI." He added, "Through this cooperation with AVITA, we expect to apply physical AI-based customer service to real sites and advance companies' customer guidance and counselling work into intelligent AI services."

AVITA COO and CFO Shogo Nishiguchi said, "I am pleased to form a partnership with MegazoneCloud, which has influence in the global cloud market." He added, "Through AI avatar technology that embodies Professor Hiroshi Ishiguro's philosophy, we will create the value of new communication in global markets including South Korea."