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OpenAI and Foxconn Team Up to Build AI Data Center Hardware in the US

OpenAI and Foxconn Team Up to Build AI Data Center Hardware in the US

OpenAI has partnered with Foxconn, to jointly design and produce hardware for AI data centers in the United States.

According to OpenAI’s statement, the partnership focuses on design work and US manufacturing readiness for “the next generation of AI infrastructure hardware.” OpenAI said it will share insight into emerging hardware needs to inform Foxconn’s development efforts and will have early access to evaluate the systems with an option to purchase them. The initial agreement carries no purchase commitments or financial obligations.

The companies will work together to develop several generations of AI server racks at the same time. They will also make important parts at Foxconn’s facilities in the United States.

This includes cabling, networking, cooling, and power systems. The goal is to strengthen US supply chains, use more US-based chip suppliers, and increase local testing and assembly.

“Foxconn is uniquely positioned to support OpenAI’s mission with trusted, scalable infrastructure,” said Foxconn chairman Young Liu. He added that the manufacturer, known globally for its contract electronics work and iPhone assembly, is “thrilled to partner with OpenAI – a pioneer at the forefront of the AI digital age.”

OpenAI’s chief executive officer Sam Altman framed the effort as part of a broader push to build AI infrastructure domestically. “The infrastructure behind advanced AI is a generational opportunity to reindustrialise America,” said Altman. “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.”

Foxconn has facilities in several US states, including Wisconsin, Ohio, Texas, Virginia, and Indiana, according to its website. The company has expanded into AI and automotive production and manufactures server racks designed for AI workloads serving as a major supplier to Nvidia.

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