Foxconn, OpenAI Collaborate on AI Hardware Design, Manufacturing
Foxconn, a Taiwanese organisation, announced a partnership with U.S.-based OpenAI to design and engineer data centre racks, components, and other artificial intelligence hardware. This collaboration aims to meet the increasing demand for AI infrastructure.
The initial agreement does not include purchase commitments or financial obligations. However, OpenAI will have early access to evaluate these systems and an option to buy them.
This tie-up provides Foxconn, the world's largest contract electronics maker, insight into the growing computing needs of large AI organisations. It will help design products that meet the requirements of advanced large language models.
Foxconn expects AI-related demand to be a significant driver of 2026 growth, benefiting from the data centre boom and investments from large technology firms. The company is a supplier for Nvidia.
The deal expands OpenAI’s involvement in hardware design. OpenAI previously partnered with Broadcom to develop its own custom chip as it seeks to take a hands-on approach to creating AI systems.
OpenAI Chief Executive Officer Sam Altman stated the startup is committed to spending USD 1.4 trillion to develop 30 gigawatts of computing resources. This amount of power is roughly equivalent to supplying 25 million U.S. homes.
Foxconn will manufacture the data centre components, which include cables, power systems, and networking equipment. Production will occur at its U.S. facilities, bolstering supply chains.
Separately, Foxconn announced a joint venture with Alphabet unit Intrinsic. This venture aims to establish general-purpose robotics and automation across manufacturing facilities to speed up production.
Initially, the collaboration will cover a range of scenarios, including assembly, inspection, machine tending, and logistics applications.
Foxconn and OpenAI are partnering to design and engineer AI hardware, including data centre racks and components.
OpenAI will have early access to evaluate the systems and an option to buy them, though no initial purchase commitments exist.
Foxconn expects AI-related demand to drive significant growth in 2026.
Source: REUTERS
