Foxconn Technology Group and OpenAI have inked a deal to partner on the design and future production of next-generation AI data-centre hardware. Under the plan, OpenAI will provide Foxconn with insight into the hardware requirements of current and upcoming AI models, while Foxconn will focus on engineering and preparing its US facilities for potential manufacturing.

OpenAI is involved in an estimated US$1 trillion worth of infrastructure projects this year, including a US$300 billion cloud deal with Oracle and the US$500 billion Stargate project led with Oracle and SoftBank.

Foxconn, has been increasing its AI-related output as server demand grows and traditional consumer electronics manufacturing faces slowing margins. The Taiwanese firm is already a major supplier of AI servers and networking equipment, and analysts say a deeper relationship with OpenAI strengthens its position in the global AI supply chain.

The companies announced they will work on three areas: designing multiple generations of data-centre racks aligned to OpenAI’s model roadmap; expanding US-based sourcing, testing and assembly to simplify and strengthen domestic supply chains; and manufacturing key data-centre components, which includes cabling, networking, cooling and power systems.

“The infrastructure behind advanced AI is a generational opportunity to reindustrialize America,” said Sam Altman, CEO of OpenAI. “This partnership is a step toward ensuring the core technologies of the AI era are built here. We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

“We at Foxconn are thrilled to partner with OpenAI – a pioneer at the forefront of the AI digital age,” said Foxconn chairman Young Liu. “As the world’s largest manufacturer of AI data servers, Foxconn is uniquely positioned to support OpenAI’s mission with trusted, scalable infrastructure that accelerates innovation and broadens access to transformative AI capabilities for businesses and users worldwide.”

The company has been expanding its US manufacturing footprint amid concerns over geopolitical risk in the Taiwan Strait and increasing pressure from technology firms to diversify production locations. Despite higher labour and operating costs, several major AI hardware buyers have signalled a preference for US-based production to reduce supply-chain vulnerabilities.

In addition to the OpenAI deal, Foxconn has announced a partnership with Intrinsic, Alphabet’s robotics subsidiary, to develop AI-enabled automation tools for its U.S. facilities. The joint venture will initially focus on assembly, inspection, machine tending, and logistics applications, with a longer-term goal of full factory orchestration.

The initiative targets challenges in electronics assembly, where high-volume AI hardware production has traditionally combined rigid automation with manual processes.

By integrating AI-driven robotics, Foxconn and Intrinsic aim to automate tasks across multiple product generations, reduce dependency on manual labour, and increase production flexibility.

Intrinsic’s web-based developer platform, Flowstate, will allow engineers from both companies to implement AI-driven solutions, including computer vision and intelligent robotics, across manufacturing lines.

Young Liu, chairman and CEO of Foxconn, said: “In working with Intrinsic, we are able to tap their deep expertise in AI-driven robotics. This synergy complements our global manufacturing leadership, enabling us to collaboratively unlock the factory of the future.”

Wendy Tan White, CEO of Intrinsic, said: “Together we’re working to bring the value of AI into the physical world. By marrying Intrinsic’s expertise in AI-driven robotics software – as well as Alphabet’s deep expertise in applied research and platform development – with Foxconn’s longstanding expertise with worldwide production, world-class facilities, and vision for the future of manufacturing, we will accelerate the adoption of AI where it is most needed and valuable today. The partnership with Foxconn provides an incredible opportunity to scale these solutions broadly.”

Dr. Zhe Shi, chief digital officer of Foxconn, said: “Intrinsic has led the way when it comes to building an AI-integrated platform and AI-enabled robotic capabilities that can scale. In working together, we’ll be able to ensure Foxconn’s Smart Manufacturing platform will enable intelligent automation fully across our factories, from data management to robotics, AI, and digital twins.

“This partnership will help revolutionise our factory operations, making them even more flexible, adaptable, skill-based, and scalable. From individual tasks at the robot level, to full production lines and plant management, we’re excited to be building the factory of the future together.”

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