TAIPEI / BENGALURU – November 21, 2025 – Foxconn, the world’s largest contract electronics manufacturer, has announced a strategic partnership with U.S.-based OpenAI to design and engineer cutting-edge AI hardware. The collaboration will focus on data center racks, power systems, networking components, and other infrastructure needed to support the growing demands of artificial intelligence workloads.

While the initial agreement does not involve immediate purchase commitments or financial obligations, OpenAI will receive early access to evaluate Foxconn’s AI systems and has the option to buy them in the future, according to the Taiwanese technology giant.

Meeting the Growing Demand for AI Compute

The partnership allows Foxconn to gain direct insight into the compute requirements of large-scale AI firms and design products tailored for advanced large language models. Analysts say this is a timely move as demand for AI infrastructure continues to surge globally, following Nvidia’s bullish outlook on AI-driven growth in 2026.

“This deal positions Foxconn to ride the data center boom and benefit from the billions being invested in AI by Big Tech,” industry experts noted.

OpenAI has increasingly taken a hands-on approach to AI hardware development, previously partnering with Broadcom to develop custom chips. The collaboration with Foxconn now extends OpenAI’s influence into hardware design and manufacturing, ensuring that AI systems are optimized for both performance and scale.

Massive Investments in AI Infrastructure

OpenAI CEO Sam Altman has announced plans to invest $1.4 trillion to develop 30 gigawatts of computing power, roughly equivalent to the electricity consumption of 25 million U.S. homes. Foxconn will manufacture essential components—including cables, power systems, and networking equipment—at its U.S. facilities, supporting domestic supply chains while avoiding potential tariffs imposed by the Trump administration.

Separately, Foxconn is pursuing a joint venture with Alphabet’s Intrinsic unit to develop general-purpose robotics and automation for manufacturing, including assembly, inspection, machine tending, and logistics. The venture aims to speed up production across facilities, complementing the AI hardware initiative with OpenAI.

Strategic Significance

The Foxconn–OpenAI partnership underscores the growing trend of vertical integration in AI infrastructure, where AI companies are moving beyond software development to influence hardware design, chip development, and manufacturing. Analysts say that controlling the entire AI stack—from hardware to large language model deployment—will be crucial for maintaining efficiency, scalability, and competitiveness in the next phase of AI evolution.

With Foxconn’s manufacturing expertise and OpenAI’s AI know-how, the partnership is expected to accelerate AI adoption across industries, supporting everything from cloud computing and data centers to robotics and automation.