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OpenAI and Taiwan electronics giant Foxconn The partnership has been agreed to design and build key equipment for artificial intelligence data centers in the US as part of ambitious plans to strengthen US AI infrastructure.
Foxconn, which makes AI servers NVIDIA and combines Apple Under the agreement, products including the iPhone will co-design and develop AI data center racks with OpenAI, the companies said in separate statements Thursday and Friday.
The products Foxconn will manufacture at its U.S. facilities include cabling, networking and power systems for AI data centers, the companies said. OpenAI will have “early access” to evaluate and potentially purchase them.
Foxconn has factories in the US, including Ohio and Texas. The statement said the preliminary agreement does not include financial obligations or purchase commitments.
The Taiwanese contract manufacturer is diversifying its business, developing electric vehicles and acquiring other electronics companies to build out its product offering.
“This partnership is a step toward ensuring that the core technologies of the AI era are built here,” Sam Altman, CEO of San Francisco-based OpenAI, said in the statement. “We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”
OpenAI has committed $1.4 trillion to building AI infrastructure. It recently entered into a multi-billion partnership with Nvidia and AMD to expand the massive computing power needed to support its AI models and services. It is also partnering with US chipmaker Broadcom in designing and manufacturing its own AI chips.
But its massive spending plans have worried investors, raising questions about its ability to recoup its investments and remain profitable. Altman said this month that OpenAI, a startup founded in 2015 and the creator of ChatGPT, is expected to reach more than $20 billion in annual revenue this year, rising to “hundreds of billions by 2030.”
Foxconn’s Taiwan-listed share price has surged 25% so far this year, along with the prices of many tech companies benefiting from the AI craze.
The Taiwan company’s net profit in the July-September quarter rose 17% from a year earlier to more than 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most.
“We believe the importance of the AI industry is growing significantly,” Liu said during Foxconn’s earnings call this month.
“I am very optimistic about the development of AI next year and hope that our cooperation with key customers and partners will become even closer,” Liu said.
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Chan reported from Hong Kong