Foxconn Partners with OpenAI to Design U.S. Data Center Hardware

Foxconn, also known as Hon Hai Precision Industry, has entered a partnership with OpenAI to co-design and manufacture hardware for AI data centers in the United States, according to Bloomberg. The collaboration will focus on developing server racks, cabling, power systems, and other essential components for U.S.-based data center facilities.

OpenAI CEO Sam Altman said the partnership aims to ensure that core technologies of the AI era are built in the U.S. and to strengthen American leadership in the field. The agreement does not include specific purchase commitments but highlights OpenAI’s growing infrastructure needs to support its expanding AI systems.

Foxconn showcased the partnership during its annual Hon Hai Tech Day in Taiwan, where it also announced collaborations with NVIDIA and Alphabet’s Intrinsic. The company’s server business has become its largest revenue driver, underscoring its transition from a primary assembler of Apple devices to a key supplier in the AI hardware sector.

At the event, Foxconn highlighted its work with NVIDIA on compute trays for Blackwell chips and announced plans with Intrinsic to build AI factories. Chairman Young Liu said the company’s focus on hardware ensures continued demand regardless of which AI models or platforms dominate the market.