Foxconn prepares new cooperation with OpenAI — Channel NewsAsia

Taiwan’s Foxconn is working on new cooperation with the U.S. company OpenAI. Foxconn Chairman Young Liu announced this on October 30 in Taipei during the company’s annual technology event. As Channel NewsAsia reports, Liu met with OpenAI CEO Sam Altman on the same day.

Details of the agreement were not disclosed

According to the Foxconn chairman, the parties will announce the agreement after its details are finally confirmed. He did not specify possible areas of the new partnership.

The potential agreement would expand on cooperation launched last year. At that time, Foxconn and OpenAI agreed to work together on the design and engineering development of data center racks, components and other equipment for artificial intelligence.

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Bet on AI infrastructure

Foxconn, officially named Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer and the largest producer of AI servers for Nvidia. The company is increasingly relying on artificial intelligence infrastructure as a source of growth.

Liu said that he does not consider the artificial intelligence sector to be a bubble, despite concerns about the sustainability of major investments amid rising borrowing costs. Foxconn expects to maintain double-digit growth next year.

The company has six factory buildings in Houston, Texas, where it produces AI servers for Nvidia, and sees a need for further expansion. In August, Foxconn said that its cloud and networking products segment, which includes AI servers, accounted for 51% of its revenue in the second quarter, exceeding half of its income for the first time.