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OpenAI Taps Foxconn to Build AI Data‑Center Components in U.S.

The tie-up positions OpenAI to source core data‑center gear from U.S. plants to mitigate tariff risk.

A Foxconn high energy density solid-state lithium metal battery is displayed at Foxconn?s annual tech day in Taipei, Taiwan October 8, 2024. REUTERS/Ann Wang/File Photo

Overview

  • The companies will co-develop multiple generations of AI server racks, with Foxconn manufacturing power, networking, cooling systems and cables at its U.S. facilities.
  • OpenAI will get early access to evaluate Foxconn-built systems and holds an option to buy, with no binding purchase commitments or disclosed financial terms.
  • Foxconn says the arrangement offers deeper insight into the compute needs of large AI firms as it targets growth from the data-center boom.
  • The partnership extends OpenAI’s hardware push that includes custom chip work with Broadcom alongside large cloud and compute deals with major providers.
  • Reuters reports Foxconn also unveiled a robotics joint venture with Alphabet’s Intrinsic, while OpenAI has outlined plans to invest about $1.4 trillion to build roughly 30 gigawatts of compute capacity.