OpenAI has entered a partnership with Foxconn to manufacture specialized AI systems at the Taiwanese tech giant’s facilities in the United States. Under the agreement, OpenAI will gain early access to test the hardware and retains the option to purchase it once finalized.
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The collaboration comes amid a global shortage of advanced AI infrastructure, as demand continues to outstrip supply. “Demand for critical components in AI infrastructure is already far outpacing supply, and we expect that will only continue,” OpenAI CEO Sam Altman said via video at a Foxconn event in Taipei.
OpenAI has committed an estimated $1 trillion to infrastructure partnerships in 2025, including a $300 billion deal with Oracle and the $500 billion Stargate initiative with Oracle and Japan’s SoftBank.
Foxconn, also known as Hon Hai, has seen profits rise as it pivots from lower-margin iPhone assembly toward high-growth AI server production. Investor enthusiasm for AI has boosted tech valuations, although it has also raised concerns about a potential market bubble and contributed to recent market volatility.
In a related announcement, Foxconn and Intrinsic, a robotics subsidiary of Alphabet, revealed plans to jointly develop and deploy advanced robotics systems across Foxconn’s U.S. operations, with financial terms not disclosed.
Bloomberg Intelligence analyst Steven Tseng noted that Foxconn has been expanding its U.S. presence as a key supplier of AI servers and networking equipment. He said a formal partnership with OpenAI “is a strong validation that Foxconn is now firmly among the leaders in AI infrastructure build-out.”
Tseng also highlighted that geopolitical tensions—including the risk of a Chinese invasion of democratic Taiwan—have prompted many AI server manufacturers to shift production to the U.S., despite higher costs. Still, Foxconn’s scale, vertical integration, and experience in server manufacturing should help it manage potential pressure on profit margins.
