Foxconn highlights growing AI ambitions at annual tech event
The entrance to the Foxconn construction site in Mount Pleasant, Wisconsin, in May 2019.
Katie Tarasov | CNBC
Foxconn showcased its efforts in artificial intelligence at the annual ‘Hon Hai Technology Day’ in Taiwan on Friday, underscoring the world’s largest contract manufacturer’s efforts to expand beyond its role as the largest assembler of Apple’s iPhones.
The company officially known as Hon Hai Precision Industry Inc.ChatGPT has become an important player in the field of artificial intelligence hardware with its event held on the day it announced its partnership with producer OpenAI.
The two firms will “share insights into emerging hardware needs in the AI industry,” OpenAI CEO Sam Altman said in a video statement released at the event.
He added that Foxconn will use these insights to design and prototype new equipment that can be manufactured in the United States.
The partnership will focus on Foxconn’s server business, which became its biggest source of revenue earlier this year and helped it post record profits in the September quarter.
Describing Foxconn and OpenAI as “natural partners,” Kirk Yang, an assistant professor of finance at National Taiwan University, told CNBC: “OpenAI needs strong partners not only to produce products, but also to quickly introduce all products to the market.”
“So I think it makes perfect sense for OpenAI to work with Foxconn. And Foxconn is probably the strongest partner open AI can find,” he added.
Foxconn also announced its partnership with Intrinsic, a unit of the company. Alphabet building so-called “artificial intelligence factories.”
Taiwanese manufacturer underlined deeper studies Nvidia also showcases the chip designer’s compute trays for state-of-the-art Blackwell chips.
Speaking at the event on Friday, Alexis Bjorlin, vice president and general manager of Nvidia’s DGX Cloud unit, said the partners will work to deploy advanced AI infrastructure much faster to meet customer demand.
Orders for AI hardware have surged this year, with Nvidia beating third-quarter expectations on Wednesday and offering a strong forecast for the current quarter.
Despite Nvidia’s results showing demand for AI hardware remains strong, concerns remain about a potential AI bubble in the market and the sustainability of heavy AI spending.
Speaking with CNBC’s Emily Chan on the sidelines of Hon Hai Technology Day, Foxconn Chairman Young Liu expressed confidence that the company will be protected from a potential AI bubble.
“Whatever happens [AI] models or [AI] model players will win, they all need hardware, and no matter which GPU player wins, they all need system and component suppliers to support them,” he said.
— CNBC’s Emily Chan contributed to this report
