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Foxconn is discussing a new collaboration with OpenAI as the Taiwanese electronics manufacturer expands its artificial intelligence (AI) infrastructure
business, highlighting the growing importance of hardware in the global AI race.
Foxconn Chairman Young Liu confirmed the discussions after meeting OpenAI Chief Executive Sam Altman at a technology event in Taipei on October 30. Liu said details would be announced once the discussions were finalised but did not disclose the proposed arrangement's scope, financial terms or timeline. The discussions should not be treated as a concluded deal.
Any new agreement would build on the companies' November 2025 collaboration. Under that arrangement, OpenAI agreed to share its infrastructure requirements, while Foxconn would help design successive generations of AI data-centre racks and manufacture equipment such as cabling, networking, cooling and power systems at its US facilities.
The original agreement specified that there were no purchase commitments or financial obligations. OpenAI received early access to evaluate the systems, along with an option to purchase them.
AI hardware has become an increasingly important part of Foxconn's business. The company is Nvidia's largest AI server manufacturer and operates six factory buildings in Houston, Texas, producing AI servers. Foxconn's cloud and networking products segment, which includes AI servers, accounted for 51 per cent of its second-quarter revenue, according to Reuters. The company's official results reported second-quarter revenue of New Taiwan dollar 2.53 trillion, up 41 per cent year-on-year. Revenue, operating profit and net profit all reached record levels for the period.
Liu rejected concerns that the AI sector was in a bubble and forecast double-digit growth for Foxconn next year, Reuters reported. Separately, Foxconn's August results indicated that customer demand for AI production capacity was expected to remain very strong in 2027.
The potential collaboration with OpenAI could further strengthen Foxconn's position in the growing AI hardware market. However, its commercial significance will depend on the terms of an agreement, which the companies have yet to announce.
Foxconn Chairman Young Liu confirmed the discussions after meeting OpenAI Chief Executive Sam Altman at a technology event in Taipei on October 30. Liu said details would be announced once the discussions were finalised but did not disclose the proposed arrangement's scope, financial terms or timeline. The discussions should not be treated as a concluded deal.
Any new agreement would build on the companies' November 2025 collaboration. Under that arrangement, OpenAI agreed to share its infrastructure requirements, while Foxconn would help design successive generations of AI data-centre racks and manufacture equipment such as cabling, networking, cooling and power systems at its US facilities.
The original agreement specified that there were no purchase commitments or financial obligations. OpenAI received early access to evaluate the systems, along with an option to purchase them.
AI hardware has become an increasingly important part of Foxconn's business. The company is Nvidia's largest AI server manufacturer and operates six factory buildings in Houston, Texas, producing AI servers. Foxconn's cloud and networking products segment, which includes AI servers, accounted for 51 per cent of its second-quarter revenue, according to Reuters. The company's official results reported second-quarter revenue of New Taiwan dollar 2.53 trillion, up 41 per cent year-on-year. Revenue, operating profit and net profit all reached record levels for the period.
Liu rejected concerns that the AI sector was in a bubble and forecast double-digit growth for Foxconn next year, Reuters reported. Separately, Foxconn's August results indicated that customer demand for AI production capacity was expected to remain very strong in 2027.
The potential collaboration with OpenAI could further strengthen Foxconn's position in the growing AI hardware market. However, its commercial significance will depend on the terms of an agreement, which the companies have yet to announce.
