Foxconn is pushing deeper into the world of AI infrastructure by partnering with OpenAI to design and manufacture next-generation data-center hardware in the United States. The collaboration focuses on building the physical backbone needed for modern AI systems, from cabling and networking components to power units and rack systems. Production will take place across Foxconn’s U.S. facilities, including plants in Wisconsin, Ohio, and Texas.
OpenAI gains early access to these new hardware designs, allowing the company to test and potentially adopt them quickly as model demands grow. While the agreement doesn’t include binding purchase commitments, it sets up a clear path for OpenAI to shape and refine the infrastructure that will support future generations of its models. The partnership aims to accelerate hardware development cycles by working on multiple rack generations in parallel.
For Foxconn, this marks a significant evolution. Long known as a major force in consumer electronics assembly, the company is now positioning itself as a core supplier for AI data-center technology. The move follows rising revenue in its cloud and AI-server divisions, signaling a strategic pivot toward higher-value hardware and a more diversified business model beyond smartphone manufacturing.
Beyond the industrial shift, the partnership strengthens efforts to build a more resilient, U.S.-based supply chain for AI systems. Both companies are betting that bringing critical infrastructure closer to deployment sites will reduce risk and increase efficiency as global demand for AI compute continues to surge. By expanding local manufacturing and broadening links with domestic suppliers, the collaboration aligns with broader trends in American tech reindustrialization.
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