- Foxconn partners with OpenAI to develop data center racks and AI hardware.
- OpenAI invests $1.4 trillion to build 30 gigawatts of computing capacity.
- Foxconn collaborates with Intrinsic to improve robotics, automation, and manufacturing efficiency.
Foxconn announced that it will partner with US-based OpenAI to create and engineer data center racks, components, and various artificial intelligence (AI) hardware, as both companies aim to take advantage of the surging demand for AI infrastructure. Although the initial agreement lacks purchase commitments or financial responsibilities, Foxconn stated that OpenAI will have early access to assess the systems and an opportunity to purchase them.
The partnership will enable Foxconn, the leading contract electronics manufacturer, to gain insights into the increasing computational demands of major AI companies and assist in creating products that satisfy the needs of sophisticated large language models. The Nvidia supplier presented an optimistic forecast on AI demand last week, stating it would significantly contribute to growth in 2026 as Foxconn capitalizes on the data centre surge and gains from the billions invested by major tech companies.
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The agreement increases OpenAI's participation in hardware design, as it collaborates with Broadcom to create its own custom chip, aiming for a direct approach in building AI systems. OpenAI CEO Sam Altman announced that the company is dedicated to investing US$1.4 trillion (RM5.8 trillion) to create 30 gigawatts of computing capacity sufficient to essentially power around 25 million homes in the US.
Foxconn will produce the components for data centers, such as cables, power systems, and networking gear at its facilities in the US, strengthening supply chains and avoiding possible tariffs from the Trump administration.
Foxconn revealed a partnership with Intrinsic, an Alphabet subsidiary, aimed at developing versatile robotics and automation within manufacturing sites to enhance production speed. At first, the partnership will encompass various situations involving assembly, inspection, machine tending, and logistics tasks.