In a landmark collaboration, OpenAI, the San Francisco-based artificial intelligence pioneer, has joined forces with Taiwan’s electronics titan Foxconn to design and manufacture critical components for AI data centers in the United States. This partnership aims to bolster the nation’s AI infrastructure, ensuring its leadership in the rapidly evolving technological landscape. Foxconn, renowned for its production of AI servers for Nvidia and assembly of Apple products, including the iPhone, will co-develop AI data center racks with OpenAI. The agreement, announced in separate statements on Thursday and Friday, underscores Foxconn’s role in producing essential systems such as cabling, networking, and power solutions for AI data centers at its U.S. facilities in Ohio and Texas. OpenAI will gain early access to evaluate and potentially procure these products. The initial agreement does not entail financial obligations or purchase commitments. This collaboration aligns with Foxconn’s broader strategy to diversify its business, which includes ventures into electric vehicles and acquisitions of electronics companies. Sam Altman, CEO of OpenAI, emphasized the partnership’s significance, stating, ‘This is a step toward ensuring the core technologies of the AI era are built here, strengthening U.S. leadership and ensuring the benefits of AI are widely shared.’ OpenAI has committed $1.4 trillion to AI infrastructure development, including multi-billion-dollar partnerships with Nvidia, AMD, and Broadcom to enhance computing power and design custom AI chips. Despite concerns over OpenAI’s massive spending, Altman projects the company will achieve over $20 billion in annualized revenue this year, with growth expected to reach ‘hundreds of billions by 2030.’ Foxconn’s Taiwan-listed shares have surged 25% this year, reflecting the broader tech industry’s AI-driven momentum. The company reported a 17% year-on-year increase in net profit for the July-September quarter, driven by its cloud and networking business, including AI servers. Foxconn’s leadership remains optimistic about AI’s future, anticipating closer collaborations with key clients and partners in the coming year.
OpenAI and Taiwan’s Foxconn to partner in AI hardware design and manufacturing in the US
