Foxconn Partners With OpenAI In Major AI Hardware Manufacturing Push

Foxconn said on Thursday that it will partner with US-based OpenAI to co-design and engineer data-center racks, components, and other AI hardware, as both companies look to tap surging global demand for

AI infrastructure.

The initial agreement does not include purchase commitments or financial obligations, but OpenAI will get early access to evaluate the systems and the option to buy them, Foxconn noted.

For Foxconn — the world’s largest contract electronics manufacturer and a key Nvidia supplier — the collaboration offers deeper insight into the computing needs of large AI firms and will help it design products tailored for next-generation large language models. The company recently projected strong AI-driven demand in 2026, supported by a global data-center investment boom.

The deal also broadens OpenAI’s push into hardware, following its partnership with Broadcom to develop custom chips. OpenAI CEO Sam Altman has said the company plans to invest $1.4 trillion to build 30 gigawatts of compute capacity, describing it as “enough to power roughly 25 million U.S. homes.”

“This partnership is a step toward ensuring the core technologies of the AI era are built here,” Altman said. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

Foxconn will manufacture the data-center components — including cables, power systems, and networking equipment — at its U.S. facilities, strengthening domestic supply chains and avoiding potential tariffs under the Trump administration.

Separately, Foxconn announced a joint venture with Alphabet’s Intrinsic to deploy general-purpose robotics and automation across its factories, covering assembly, inspection, machine tending, and logistics applications.