OpenAI taps iPhone assembler Foxconn to manufacture AI hardware in US
OpenAI is partnering with Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, to design and build AI data center components in the US; The latest announcement of the artificial intelligence startup is linked to massive infrastructure development plans.
Although no financial terms were disclosed, OpenAI said in Thursday’s announcement that it will have early access to evaluate systems produced by Foxconn and the option to purchase them. The goal is to accelerate infrastructure deployment while securing long-term U.S. capacity, the companies said.
Under the agreement, OpenAI and Foxconn will co-develop multiple generations of AI servers in parallel while manufacturing key components such as power, networking and cooling systems at Foxconn’s US facilities. of the company website It says it has factories in Wisconsin, Ohio, Texas, Virginia and Indiana.
“This partnership is a step towards ensuring the foundational technologies of the AI era are built here,” OpenAI CEO Sam Altman said in a statement. He described artificial intelligence infrastructure as “a generational opportunity to re-industrialize America.”
OpenAI recently reached a deal with many of the world’s largest tech companies and announced a spending commitment of nearly $1.4 trillion, raising concerns about whether the startup can generate enough profits to justify those investments. Altman said earlier this month that the company would generate $20 billion in annual revenue by the end of this year and hundreds of billions of dollars by 2030.
Previous deals include a deal worth $100 billion that was announced but not yet finalized. Nvidia The chipmaker is investing in OpenAI in phases as the company builds the infrastructure. OpenAI also has cloud partnerships Microsoft, Google And Amazon and major computing development commitments Seer.
Foxconn is adding a layer of manufacturing by further localizing OpenAI’s supply chain and potentially accelerating the speed of deployment. The company is best known for its assembly work Apple’s iPhones have only expanded into artificial intelligence and automotive manufacturing. It produces server racks specifically designed for AI workloads and is a major global supplier to Nvidia, the dominant player in high-end AI chips.
“Foxconn is uniquely positioned to support OpenAI’s mission with reliable, scalable infrastructure,” said President Young Liu.
But the company has a checkered history in the US. Foxconn broke ground on a massive factory in Wisconsin in 2018 that will produce flat panel displays. This project failed and is now the site of an AI data center being built by Microsoft.
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