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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).
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.
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.
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.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
