OpenAI Partners with Foxconn for $5 Billion US AI Infrastructure Expansion

OpenAI Partner Foxconn Plans Up to $5 Billion for US Expansion

Hon Hai Precision Industry Co. aims to spend an initial $1 billion to $5 billion growing its US manufacturing footprint, propelling an expansion aimed at sating the enormous needs of AI sector leaders Nvidia Corp. and OpenAI. Hon Hai, which on Friday unveiled a broad agreement with OpenAI on server design and production, is expanding capacity in particular for servers that go into artificial intelligence data centers. The company is focusing on the US and expects to be able to assemble up to 2,000 server racks per week in 2026, roughly doubling its current output, Chairman Young Liu told Bloomberg Television on the sidelines of a company event on Friday.

OpenAI and Taiwan's Foxconn to partner in AI hardware design and manufacturing in the US

TAIPEI, Taiwan (AP) -- OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure. Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday. The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have "early access" to evaluate and potentially to purchase them. Foxconn has factories in the U.S., including in Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said. The Taiwan contract manufacturer has been moving to diversity its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings. "This partnership is a step toward ensuring the core technologies of the AI era are built here," Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. "We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared." OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips. But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to "hundreds of billions by 2030." Foxconn's Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI. The Taiwan company's net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business. "We believe the importance of the AI industry is increasing significantly," Liu said during Foxconn's earnings call this month. "I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer," said Liu.

OpenAI taps iPhone assembler Foxconn to manufacture data center components in U.S.

Sam Altman, chief executive officer of OpenAI Inc., during a media tour of the Stargate AI data center in Abilene, Texas, US, on Tuesday, Sept. 23, 2025. OpenAI is partnering with Taiwan's Foxconn, the world's largest contract electronics manufacturer, to design and build artificial intelligence data center components in the U.S., the AI startup's latest announcement tied to its massive infrastructure development plans. While no financial terms were disclosed, OpenAI said in Thursday's announcement that it will have early access to evaluate the systems Foxconn produces, and the option to purchase them. The companies said the goal is to accelerate the deployment of infrastructure while securing long-term U.S. capacity. Under the agreement, OpenAI and Foxconn will co-develop multiple generations of AI servers in parallel, while manufacturing core components like power, networking, and cooling systems at Foxconn's U.S. facilities. The company's website says it has factories in Wisconsin, Ohio, Texas, Virginia and Indiana. "This partnership is a step toward ensuring the core technologies of the AI era are built here," OpenAI CEO Sam Altman said in a statement, calling AI infrastructure a "generational opportunity to reindustrialize America." OpenAI has been on a dealmaking blitz of late with many of the world's largest technology companies, and has announced spending commitments of roughly $1.4 trillion, raising concerns about whether the startup will ever generate enough profit to justify those investments. Altman said earlier this month that the company will hit $20 billion in annualized revenue by the end of this year and hundreds of billions by 2030. Prior deals include a $100 billion announced -- but unfinalized -- agreement with Nvidia for the chipmaker to invest in OpenAI in phases as the company builds out infrastructure. OpenAI also has cloud partnerships with Microsoft, Google and Amazon and hefty compute buildout commitments with Oracle. Foxconn adds a manufacturing layer, further localizing OpenAI's supply chain and potentially speeding the pace of deployment. The company is best known for assembling Apple's iPhones but has expanded into AI and automotive manufacturing. It builds server racks tailored for AI workloads and is a key global supplier to Nvidia, the dominant player in high-end AI chips. "Foxconn is uniquely positioned to support OpenAI's mission with trusted, scalable infrastructure," said Chairman Young Liu. But the company has a checkered history in the U.S. In 2018, Foxconn broke ground on what was supposed to be a massive factory in Wisconsin for making flat-panel displays. That project was a failure, and is now the site of an AI data center being built by Microsoft.

OpenAI, Foxconn Partner to Co-Design AI Data Centre Hardware | AIM

Foxconn will also manufacture key components for AI data centres in the US, including cabling, networking, cooling, and power systems. OpenAI has entered into a collaboration with Hon Hai Technology Group (Foxconn) to advance work on US manufacturing readiness for next-generation AI infrastructure hardware, the companies announced on November 20. While the agreement does not include purchase commitments, OpenAI will have early access to evaluate new systems and the option to buy them. The partnership aims to address the growing demand for physical infrastructure that supports increasingly advanced AI models. Under the initiative, the two companies will co-design and develop multiple generations of AI data centre racks in parallel, aligning OpenAI's infrastructure roadmap with Foxconn's engineering and manufacturing capabilities. Sam Altman, CEO of OpenAI, said the effort represents a generational opportunity to reindustrialise America. "This partnership is a step toward ensuring the core technologies of the AI era are built here. We believe this work will strengthen US leadership and help ensure the benefits of AI are widely shared," he added. As part of the collaboration, both sides will work to broaden domestic sourcing, improve rack architecture for US manufacturing, and expand local testing and assembly. The companies said these steps are intended to strengthen the US AI supply chain, speed deployment, and improve reliability. Foxconn will also manufacture key components for AI data centres in the US, including cabling, networking, cooling, and power systems, to support the buildout of high-performance compute infrastructure. "We at Foxconn are thrilled to partner with OpenAI... As the world's largest manufacturer of AI data servers, Foxconn is uniquely positioned to support OpenAI's mission with trusted, scalable infrastructure," said Foxconn chairman Young Liu. Previously, OpenAI announced a multi-year strategic collaboration with Broadcom to co-develop and deploy 10 gigawatts of OpenAI-designed AI accelerators and networking systems, marking a major expansion in OpenAI's infrastructure capabilities. Under the partnership, OpenAI will design the accelerators and systems, while Broadcom will provide Ethernet and other connectivity solutions for large-scale deployment across OpenAI facilities and partner data centres. Deployment of the racks is expected to begin in the second half of 2026 and conclude by the end of 2029.

OpenAI and Taiwan's Foxconn to partner in AI hardware design and manufacturing in the US

TAIPEI, Taiwan (AP) -- OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure. Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday. The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have "early access" to evaluate and potentially to purchase them. Foxconn has factories in the U.S., including in Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said. The Taiwan contract manufacturer has been moving to diversity its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings. "This partnership is a step toward ensuring the core technologies of the AI era are built here," Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. "We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared." OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips. But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to "hundreds of billions by 2030." Foxconn's Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI. The Taiwan company's net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business. "We believe the importance of the AI industry is increasing significantly," Liu said during Foxconn's earnings call this month. "I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer," said Liu. ___ Chan reported from Hong Kong

OpenAI and Taiwan's Foxconn to partner in AI hardware design and manufacturing in the US

TAIPEI, Taiwan -- OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure. Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday. The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have "early access" to evaluate and potentially to purchase them. Foxconn has factories in the U.S., including in Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said. The Taiwan contract manufacturer has been moving to diversity its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings. "This partnership is a step toward ensuring the core technologies of the AI era are built here," Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. "We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared." OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips. But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to "hundreds of billions by 2030." Foxconn's Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI. The Taiwan company's net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business. "We believe the importance of the AI industry is increasing significantly," Liu said during Foxconn's earnings call this month. "I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer," said Liu.

OpenAI and Foxconn Will Partner on AI Hardware Design and Manufacturing in the U.S.

OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure. Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday. The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have "early access" to evaluate and potentially to purchase them. Foxconn has factories in the U.S., including in Wisconsin, Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said. The Taiwan contract manufacturer, formally known as Hon Hai Precision Industry Co., has been moving to diversify its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings. A sleek Model A EV made by the group's automaking affiliate Foxtron was on display at Friday's event. "This year, Model A. 'A',' for affordable," said Jun Seki, chief strategy officer for Foxconn's EV business. The tie-up with OpenAI can also help Taiwan, a self-governed island claimed by China, to build up its own computing resources, said Alexis Bjorlin, a Nvidia vice president. "This allows Taiwan's domain knowledge and key technology data to remain local and ensure data security," she said. "This partnership is a step toward ensuring the core technologies of the AI era are built here," Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. "We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared." OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips. But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to "hundreds of billions by 2030." Foxconn's Taiwan-listed share price has risen 25 percent so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI. The Taiwan company's net profit in the July-September quarter rose 17 percent from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business. "We believe the importance of the AI industry is increasing significantly," Liu said during Foxconn's earnings call this month. "I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer," said Liu. Copyright 2025. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

OpenAI and Taiwan's Foxconn to Partner in AI Hardware Design and Manufacturing in the US

TAIPEI, Taiwan (AP) -- OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure. Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday. The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have "early access" to evaluate and potentially to purchase them. Foxconn has factories in the U.S., including in Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said. The Taiwan contract manufacturer has been moving to diversity its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings. "This partnership is a step toward ensuring the core technologies of the AI era are built here," Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. "We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared." OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips. But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to "hundreds of billions by 2030." Foxconn's Taiwan-listed share price has risen 25% so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI. The Taiwan company's net profit in the July-September quarter rose 17% from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business. "We believe the importance of the AI industry is increasing significantly," Liu said during Foxconn's earnings call this month. "I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer," said Liu. ___ Chan reported from Hong Kong

Foxconn, OpenAI partner on AI hardware manufacturing - The Economic Times

While the initial agreement does not include purchase commitments or financial obligations, OpenAI will have early access to evaluate the systems and an option to buy them, Foxconn said. Foxconn will collaborate with US-based OpenAI to design and engineer data center racks, components, and other artificial intelligence hardware, the Taiwanese company said on Thursday, as both firms seek to capitalize on booming demand for AI infrastructure. While the initial agreement does not include purchase commitments or financial obligations, OpenAI will have early access to evaluate the systems and an option to buy them, Foxconn said. The tie-up will allow Foxconn, the world's largest contract electronics maker, an insight into the growing compute needs of large AI firms and help design products that meet the requirements of advanced large language models. The Nvidia supplier last week offered a bullish outlook on AI-related demand, saying it would be a big driver of 2026 growth as Foxconn rides the data center boom and benefits from the billions invested by Big Tech firms. The deal expands OpenAI's involvement in hardware design, having partnered with Broadcom to develop its own custom chip, as it seeks to take a hands-on approach to creating AI systems. OpenAI CEO Sam Altman has said the startup is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources - enough to roughly power 25 million US homes. Foxconn will manufacture the data center components, which include cables, power systems, and networking equipment at its US facilities, bolstering supply chains and side-stepping any potential tariffs from the Trump administration. Separately on Thursday, Foxconn announced a joint venture with Alphabet unit Intrinsic to establish general-purpose robotics and automation across manufacturing facilities to speed-up production. Initially, the collaboration will cover a range of scenarios across assembly, inspection, machine tending and logistics applications.

OpenAI Teams Up With Foxconn To Design And Manufacture AI Hardware In The US - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)

In a bid to strengthen the artificial intelligence (AI) infrastructure in the United States, OpenAI has partnered with the Taiwanese electronics giant Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd (OTC:HNHAF). US Push for AI Hardware Strength The two companies have agreed to collaborate on the design and production of crucial AI data center equipment in the U.S. This partnership is part of a broader initiative to bolster America's AI infrastructure. Foxconn, which is responsible for manufacturing AI servers for Nvidia (NASDAQ:NVDA) and assembling various Apple (NASDAQ:AAPL) products, including the iPhone, will work with OpenAI to co-design and develop AI data center racks. The products to be manufactured in Foxconn's U.S. facilities will include cabling, networking, and power systems for AI data centers. OpenAI will have the opportunity to evaluate and potentially purchase these products. The initial agreement doesn't include any financial obligations or purchase commitments. OpenAI CEO Sam Altman said the partnership marks an important move to keep the foundational technologies of the AI era rooted in the U.S. He added that the collaboration will bolster America's leadership in the field and help ensure the benefits of AI reach everyone. See Also: Amazon Is Sending Automatic Refunds To Millions After Record $2.5 Billion FTC Settlement: Here's What You Must Do To Claim Yours Foxconn's Big Bet on AI Growth The partnership between OpenAI and Foxconn comes at a time when Foxconn is significantly increasing its investment in AI. Another report on Friday suggested that Foxconn would be investing between $2 billion and $3 billion annually into AI infrastructure and technology, representing more than half of its yearly capex over the next three to five years. This was followed by a report in October, where Foxconn announced a $1.37 billion investment in AI and supercomputing infrastructure. OpenAI Expands Major AI Partnerships Meanwhile, OpenAI has also been making significant moves in the AI space, as evidenced by its recent multi-year deal with Intuit (NASDAQ:INTU), which aims to add Intuit-powered apps in ChatGPT. This partnership will deepen Intuit's use of OpenAI's frontier models in its proprietary generative AI operating system as part of a $100 million-plus deal. OpenAI also announced a deal with Advanced Micro Devices (NASDAQ:AMD) and a prospective partnership with Nvidia in the past few months. READ NEXT: Nvidia Gives 'No Assurance' On $100 Billion OpenAI Pact, But CEO Jensen Huang Calls Startup 'Once-In-A-Generation' Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$265.32-0.35%OverviewAMDAdvanced Micro Devices Inc$200.15-2.85%HNHAFHon Hai Precision Industry Co Ltd$7.7035.1%INTUIntuit Inc$659.633.48%NVDANVIDIA Corp$175.12-3.06%Market News and Data brought to you by Benzinga APIs

OpenAI and Taiwan's Foxconn to partner in AI hardware design and manufacturing in the U.S.

TAIPEI, Taiwan -- OpenAI and Taiwan electronics giant Foxconn have agreed to a partnership to design and manufacture key equipment for artificial intelligence data centers in the U.S. as part of ambitious plans to fortify American AI infrastructure. Foxconn, which makes AI servers for Nvidia and assembles Apple products including the iPhone, will be co-designing and developing AI data center racks with OpenAI under the agreement, the companies said in separate statements on Thursday and Friday. The products Foxconn will manufacture in its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have "early access" to evaluate and potentially to purchase them. Foxconn has factories in the U.S., including in Wisconsin, Ohio and Texas. The initial agreement does not include financial obligations or purchase commitments, the statements said. The Taiwan contract manufacturer, formally known as Hon Hai Precision Industry Co., has been moving to diversify its business, developing electric vehicles and acquiring other electronics companies to build out its product offerings. A sleek Model A EV made by the group's automaking affiliate Foxtron was on display at Friday's event. "This year, Model A. 'A',' for affordable," said Jun Seki, chief strategy officer for Foxconn's EV business. The tie-up with OpenAI can also help Taiwan, a self-governed island claimed by China, to build up its own computing resources, said Alexis Bjorlin, a Nvidia vice president. "This allows Taiwan's domain knowledge and key technology data to remain local and ensure data security," she said. "This partnership is a step toward ensuring the core technologies of the AI era are built here," Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. "We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared." OpenAI has committed US$1.4 trillion to building AI infrastructure. It recently entered into multi-billion partnerships with Nvidia and AMD to expand the extensive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and making its own AI chips. But its massive spending plans have worried investors, raising questions over its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected to reach more than $20 billion in annualized revenue this year, growing to "hundreds of billions by 2030." Foxconn's Taiwan-listed share price has risen 25 per cent so far this year, along with the surge in prices for many tech companies benefiting from the craze for AI. The Taiwan company's net profit in the July-September quarter rose 17 per cent from a year earlier to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most business. "We believe the importance of the AI industry is increasing significantly," Liu said during Foxconn's earnings call this month. "I am very optimistic about the development of AI next year, and expect our cooperation with major clients and partners to become even closer," said Liu.

Foxconn partners with OpenAI to advance AI hardware manufacturing By Investing.com

Investing.com-- Foxconn (TW:2317) said on Friday it has partnered with OpenAI to advance the design and U.S. manufacturing readiness of next-generation artificial intelligence infrastructure hardware. The agreement, which carries no purchase commitments, will see OpenAI share insights into emerging hardware needs across the AI industry to guide Foxconn's development work. Foxconn will manufacture key data-centre components, including networking, cooling, and power systems, at its U.S. sites, giving OpenAI early access to evaluate the systems and an option to buy them. The collaboration focuses on co-designing multiple generations of AI data-centre racks, broadening U.S. sourcing of components and chipsets, and expanding local testing and assembly to speed deployment and improve supply-chain resilience. Foxconn Chairman Young Liu said the company is "uniquely positioned" to support OpenAI's mission with scalable infrastructure, while OpenAI CEO Sam Altman said the effort represents a chance to "reindustrialize America."

OpenAI, Foxconn to Collaborate on AI Hardware Manufacturing

OpenAI and Foxconn agreed to a collaboration to manufacture artificial-intelligence hardware in the U.S. As part of the partnership, OpenAI late Thursday said it will provide Foxconn insight on hardware needs in the AI industry, informing Foxconn's design and development efforts. OpenAI will have early access to evaluate these systems and have an option to purchase them. The companies will codesign, engineer and develop multiple generations of AI data-center racks and improve the U.S. manufacturing supply chain, OpenAI said. Foxconn will manufacture equipment for AI data centers in the U.S., it added. Foxconn, otherwise known as Hon Hai, is a Taiwanese electronics manufacturer. Write to Nicholas G. Miller at [email protected].

OpenAI Partners With Foxconn to Design Hardware for Data Centers

OpenAI just inked a manufacturing deal with Foxconn to build AI data center components on U.S. soil. The partnership marks OpenAI's latest move to secure domestic supply chains as the company burns through $1.4 trillion in infrastructure commitments while chasing ambitious revenue targets. OpenAI just struck a partnership with Taiwan's Foxconn to design and build AI data center components across the U.S., adding a crucial manufacturing layer to its massive infrastructure buildout. The deal gives OpenAI early access to evaluate Foxconn's systems plus purchase options, though neither company disclosed financial terms. What's clear is the strategic intent - accelerate infrastructure deployment while securing long-term domestic capacity as AI demand explodes. Under the agreement, the companies will co-develop multiple generations of AI servers simultaneously, manufacturing everything from power systems to networking and cooling components at Foxconn's existing U.S. facilities in Wisconsin, Ohio, Texas, Virginia and Indiana. The OpenAI-Foxconn partnership signals how AI infrastructure is reshaping American manufacturing. As tech giants pour trillions into compute capacity, companies like Foxconn are pivoting from consumer electronics to AI hardware - and finding redemption along the way. For OpenAI, securing domestic manufacturing capacity isn't just about supply chain resilience; it's about executing on revenue promises that could make or break the AI boom. The real test will be whether Foxconn can deliver on U.S. soil what it's mastered overseas.

Foxconn, OpenAI partner on AI hardware manufacturing

(Reuters) -Foxconn will collaborate with U.S.-based OpenAI to design and engineer data center racks, components, and other artificial intelligence hardware, the Taiwanese company said on Thursday, as both firms seek to capitalize on booming demand for AI infrastructure. While the initial agreement does not include purchase commitments or financial obligations, OpenAI will have early access to evaluate the systems and an option to buy them, Foxconn said. The tie-up will allow Foxconn, the world's largest contract electronics maker, an insight into the growing compute needs of large AI firms and help design products that meet the requirements of advanced large language models. The Nvidia supplier last week offered a bullish outlook on AI-related demand, saying it would be a big driver of 2026 growth as Foxconn rides the data center boom and benefits from the billions invested by Big Tech firms. The deal expands OpenAI's involvement in hardware design, having partnered with Broadcom to develop its own custom chip, as it seeks to take a hands-on approach to creating AI systems. OpenAI CEO Sam Altman has said the startup is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources - enough to roughly power 25 million U.S. homes. Foxconn will manufacture the data center components, which include cables, power systems, and networking equipment at its U.S. facilities, bolstering supply chains and side-stepping any potential tariffs from the Trump administration. Separately on Thursday, Foxconn announced a joint venture with Alphabet unit Intrinsic to establish general-purpose robotics and automation across manufacturing facilities to speed-up production. Initially, the collaboration will cover a range of scenarios across assembly, inspection, machine tending and logistics applications. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)