OpenAI and Taiwanese electronics giant Foxconn have announced a new partnership to jointly design and manufacture key hardware for artificial intelligence data centers in the United States, marking a significant step toward strengthening America’s AI infrastructure.
Under the agreement, Foxconn — the world’s largest contract electronics maker and a supplier for Nvidia and Apple — will co-design AI data center racks with OpenAI. The products to be manufactured at Foxconn’s U.S. facilities will include cabling, networking components and power systems, the companies said in separate statements Thursday and Friday. OpenAI will have early access to evaluate and potentially purchase the equipment.
Both sides said the initial partnership does not include financial commitments or binding purchase agreements.
Foxconn, formally known as Hon Hai Precision Industry Co., operates factories in Wisconsin, Ohio and Texas. The company has been expanding beyond consumer electronics, investing in electric vehicles and acquiring additional electronics firms. A Model A electric vehicle produced by its affiliate Foxtron was showcased at Friday’s event, with executives emphasizing affordability.
Alexis Bjorlin, a vice president at Nvidia, said the collaboration could also help Taiwan build up its own computing infrastructure while keeping sensitive technology and data secure.
“This partnership is a step toward ensuring the core technologies of the AI era are built here,” OpenAI CEO Sam Altman said, adding that the initiative would reinforce U.S. leadership in the global AI race.
OpenAI has pledged $1.4 trillion to build out AI infrastructure and recently formed multi-billion-dollar alliances with Nvidia and AMD to bolster computing capacity. It is also working with U.S. chipmaker Broadcom to design and produce custom AI chips.
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Despite rapid revenue growth — Altman says the company expects more than $20 billion in annualized revenue this year — investors have raised concerns over whether OpenAI can sustain its massive spending plans.
Foxconn’s shares have climbed 25% this year amid the global AI boom. Its July–September net profit rose 17% to NT$57.6 billion ($1.8 billion), driven largely by its cloud and networking business, including AI servers.
“We believe the importance of the AI industry is increasing significantly,” Chairman Young Liu said, expressing optimism that partnerships with major clients will deepen next year.
Source: AP