OpenAI teams up with Foxconn to develop AI infrastructure hardware in US. Details here
OpenAI has partnered with Hon Hai Precision Industry Co. to design and manufacture hardware for data centers. is collaborating with. This is the latest effort from the creator of ChatGPT to meet the growing demand for infrastructure to support AI systems.
Hon Hai, also known as Foxconn, will partner with OpenAI to co-design and develop data center server racks aimed at increasing manufacturing operations across the US. Foxconn also plans to produce cabling, power systems and other essential data center equipment domestically.
The companies noted that the agreement with OpenAI does not require any specific purchase commitments.
“We are announcing a collaboration with Hon Hai Technology Group (Foxconn) focused on design work and US production readiness for next-generation AI infrastructure hardware. As part of this work, OpenAI will share information on emerging hardware needs in the AI industry to help inform design and development efforts for hardware that will be manufactured at Foxconn’s US facilities,” OpenAI said in a statement.
OpenAI’s multibillion-dollar deals
Over the past few months, OpenAI has been working with companies including Nvidia Corp to increase its data center footprint. and Advanced Micro Devices Inc.
Meanwhile, the US-based company has moved to increase its control over the artificial intelligence supply chain by agreeing to buy chips and parts from Broadcom Inc. in October. However, according to Bloomberg, the planned increase in spending has increased concerns about the artificial intelligence bubble.
The latest deal for Foxconn is partly due to Apple Inc. It highlights a longer-term goal of expanding its involvement in the AI ecosystem to reduce reliance on iPhone assembly for iPhone. The direct partnership with OpenAI shows that the Taiwanese firm is willing to help customers integrate its designs into data centers.
“This partnership is a step towards ensuring the foundational technologies of the AI era are built here,” OpenAI Chief Executive Officer Sam Altman said in a statement. “This work will strengthen U.S. leadership and help ensure the benefits of artificial intelligence are widely shared.”
OpenAI has spent much of this year working with Oracle Corp., Bloomberg reported. and SoftBank Group Corp. and to partner on a bold plan to invest $500 billion in U.S. data centers and AI infrastructure in the coming years. This initiative was announced shortly after President Donald Trump took office.
Foxconn, which is involved in the Stargate project, is already increasing production of AI servers in the US, aligning with the administration’s key demand and reducing tariff risks. However, the actual benefit of the OpenAI partnership to Foxconn remains unclear. Altman stated that his company plans to invest $1.4 trillion in artificial intelligence infrastructure, which is a significant investment for any company.
