Foxconn announces a new tie-up with OpenAI and dismisses the idea that AI is a bubble

Taipei — Foxconn, the world's largest contract electronics manufacturer, said Friday it is working on a collaboration with OpenAI, the leading U.S. artificial intelligence company, although it offered no details of the deal for now.

Foxconn Chairman Young Liu told reporters at the company's annual technology event that he had met OpenAI Chief Executive Sam Altman earlier that day, and that there would be an announcement once details are confirmed. Any deal would build on last year's agreement between the two firms to work together on designing and engineering data-center racks, components and other AI hardware.

Foxconn, formally known as Hon Hai Precision Industry and Nvidia's biggest AI server maker, is increasingly relying on AI infrastructure for growth. While AI-sector stocks have been hit by concerns that heavy investment is not sustainable amid rising borrowing costs, Liu said the industry is not in a bubble and that Foxconn expects to maintain double-digit growth next year.

The company has six factory buildings in Houston, Texas, where it manufactures AI servers for Nvidia, and sees a need for further expansion. In August, the company said its cloud and networking products segment, which includes AI servers, accounted for 51% of second-quarter revenue, exceeding 50% for the first time.

Separately, Foxconn is making progress on plans to deploy humanoid robots at its Houston plant. Brand Cheng, chairman of the Foxconn Industrial Internet (FII) unit, told Reuters on Friday that more than 10 humanoid robots have been deployed at its Texas facilities for internal use, and that the company plans to extend deployment beyond Texas. According to presentation materials seen by Reuters, FII introduced two wheeled models in October — one that lifts things vertically and one that can bend at the waist for assembly as well as loading and unloading tasks. The unit is developing AI models for humanoid robots based on Nvidia's GR00T foundation model.

Photo: Reuters

Source: Reuters