Name: OpenAI taps Foxconn to build AI hardware in the U.S.
Uploaded: 2025-11-21T00:19:23.170Z
Duration: 2 min 45 s
Description: OpenAI has announced a new partnership with Foxconn to co-design server racks and manufacture key components at U.S. facilities — deepening the AI startup’s domestic infrastructure push.

OpenAI has announced a new partnership with Foxconn to co-design server racks and manufacture key components at U.S. facilities — deepening the AI startup’s domestic infrastructure push.

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The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

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OpenAI has entered into a partnership with Taiwan's Foxconn to develop and manufacture artificial intelligence data center hardware in the United States. This agreement will give OpenAI early access to evaluate and potentially purchase server systems designed by Foxconn, supporting the rapid deployment of OpenAI's recent $1.4 trillion in compute commitments.

Foxconn, already the world's largest maker of AI servers and a key supplier to NVIDIA, will manufacture server racks and essential components at its U.S. factories, with some production already underway in Houston. The deal is part of OpenAI CEO Sam Altman's broader hardware strategy, which includes recent agreements with Broadcom and AMD to create custom AI chips and diversify away from reliance on NVIDIA GPUs.

OpenAI taps Foxconn to build AI hardware in the U.S.

News alert on a new partnership between OpenAI and Foxconn. Mackenzie Sagalos has the details. Mack, another day, another AI deal? Indeed, Leslie. OpenAI is deepening its U.S. infrastructure push, this time teaming up with Taiwan's Foxconn to develop and manufacture AI data center hardware in America. Now, this deal gives OpenAI early access to evaluate and potentially purchase the server systems that Foxconn designs. So really, this is about OpenAI trying to speed up the deployment of the $1.4 trillion worth of compute commitments it's made in the last two months. Foxconn, it will make AI server racks with OpenAI and manufacture key components like power, cooling, networking, and cabling systems at its U.S. factories. Now, they haven't specified which site, but we know that they are already building AI servers in Houston. Even though it's best known for assembling iPhones, Foxconn is now the world's largest maker of AI servers and a key NVIDIA supplier. Now, this deal adds a manufacturing layer to OpenAI's supply chain and helps them localize production. It also comes as part of a big hardware push by OpenAI CEO, Sam Altman. He signed that $10 billion deal with Broadcom to make AI chips that would ideally rival the NVIDIA GPUs that currently train and run OpenAI's models. And you'd have to think that Foxconn would be building the racks to hold those new chips, Leslie. Mac, where did they previously build those components for data centers? Were they in other parts of the U.S.? Were they using someone other than Foxconn? Or was it abroad? So, to this point, OpenAI has exclusively been using NVIDIA's GPUs, and so NVIDIA does the server systems themselves, the NVL72. But what we've seen notably in the last few months is this push to potentially have OpenAI diversify away from NVIDIA's models. They signed that deal with AMD, and then they signed that deal with Broadcom to build their own chips. And so that's where a partner like Foxconn would be so crucial because they need a server rack to hold it so they could use specs that would be specific to what they're building out with Broadcom. And I will say this, this also comes after, you know, earnings after the bell yesterday, where in the SEC filing, NVIDIA said there's no assurance that they will enter into definitive agreements with respect to the OpenAI opportunity. They're referring to that $100 billion deal.

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OpenAI taps Foxconn to build AI hardware in the U.S.

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