OpenAI has entered into a major partnership with Taiwan’s leading electronics manufacturer Foxconn to jointly create and produce essential hardware for artificial intelligence data centers in the United States. The collaboration is part of a broader effort to strengthen American AI infrastructure at a time when demand for computing power is rapidly accelerating.
According to statements released by both companies, Foxconn will work closely with OpenAI to co-design and assemble advanced racks for AI data centers. These systems will be produced in Foxconn’s American factories, which include facilities in Wisconsin, Texas, and Ohio. The equipment will cover areas such as cabling, power management systems, and network components. OpenAI will have priority access to review the new products and the option to purchase them once development is complete. Both companies clarified that the initial agreement does not involve financial commitments or specific purchase guarantees.
Foxconn, officially known as Hon Hai Precision Industry, has been steadily expanding beyond contract electronics manufacturing. It has invested in electric vehicle development and acquired various companies to diversify its technology portfolio. At Friday’s event, the company showcased its Model A electric vehicle, described by Foxconn executive Jun Seki as an attempt to make EVs more affordable.
Representatives from Nvidia also highlighted the significance of the partnership for Taiwan. Nvidia vice president Alexis Bjorlin noted that the collaboration will allow Taiwan to strengthen its domestic computing capabilities while ensuring that sensitive technology and data stay within the region.
OpenAI chief executive Sam Altman said the initiative reflects a broader effort to ensure that the most critical technologies of the AI era are designed and manufactured within the United States. He added that the partnership will contribute to maintaining American leadership in the sector and help spread the benefits of AI more widely.
The collaboration arrives at a moment when OpenAI is undertaking an unprecedented investment program. The company has announced plans to spend around one trillion four hundred billion dollars on data centers and computing capacity in the coming years. It has already formed large-scale partnerships with Nvidia, AMD, and Broadcom to secure the hardware needed for its rapidly growing AI models. Investors, however, have expressed concern about whether these costs can be recovered in the long term. Altman recently stated that OpenAI expects to surpass twenty billion dollars in annual revenue this year and could reach several hundred billion by the end of the decade.
Foxconn has also benefited from the global surge in interest surrounding AI. Its shares in Taiwan have climbed roughly twenty five percent since the beginning of the year. The company’s quarterly results showed a seventeen percent rise in profit compared to last year, largely driven by strong performance in its cloud and networking divisions, which include the production of AI servers.
Chairman Young Liu said during Foxconn’s earnings call that the significance of artificial intelligence in the global tech market is growing rapidly. He added that he is confident the coming year will bring even stronger partnerships with major clients and continued expansion of the company’s AI related business.
