With the rapid advancement of artificial intelligence (AI) technology, the demand for high-performance computing infrastructure continues to soar. OpenAI, a global leader in AI, has been committed to driving innovation and application in AI technology. Foxconn (Hon Hai), the world's largest electronics manufacturer, boasts robust manufacturing capabilities and extensive supply chain management experience. This collaboration between the two aims to combine OpenAI's technical insights with Foxconn's manufacturing strengths to jointly advance the design and U.S.-based manufacturing of AI infrastructure hardware.

The core objective of this partnership is to strengthen the U.S. supply chain in the AI sector, accelerate the deployment of advanced AI systems, and support the U.S.'s continued leadership in AI technology. Through this collaboration, OpenAI will share its profound insights into AI hardware needs, assist Foxconn in hardware design and development, and ensure that the products meet the high-performance requirements of future AI models.

Collaboration Content and Division of Labor

1. Joint Design and Development

OpenAI and Foxconn will jointly undertake the design of multiple generations of AI data center hardware, covering server racks, power systems, cooling equipment, and networking components. Both parties will advance the development of multiple generations of hardware in parallel to adapt to the rapid iteration of AI models. OpenAI will provide insights into emerging AI workload demands and hardware specifications, while Foxconn will be responsible for engineering optimization and localized production.

2. U.S.-Based Manufacturing

Foxconn plans to utilize its factories in Wisconsin, Ohio, Texas, and other locations in the U.S. to produce key components such as cables, networking, power supplies, and cooling systems. This move will simplify the U.S. AI supply chain, reduce tariff risks, and accelerate the construction of high-performance computing infrastructure. Additionally, Foxconn will expand its procurement of local chipsets and suppliers to further optimize the supply chain.

3. Priority Assessment and Purchase Option

Although the initial agreement of this collaboration does not include specific purchase commitments or financial obligations, OpenAI will have the right to prioritize the evaluation of these systems and retain the option to purchase them in the future. This means that OpenAI will have greater autonomy in hardware selection, allowing it to flexibly choose suppliers based on its own needs.

Strategic Significance and Future Outlook

This collaboration is a significant step for OpenAI in its hardware layout. By partnering with Foxconn, OpenAI will further enhance the autonomy of its computing infrastructure, reducing its dependence on cloud service providers. Moreover, the collaboration aligns with the U.S. government's "manufacturing reshoring" policy, supporting the enhancement of local AI competitiveness.

For Foxconn, this collaboration marks a further shift in its business focus. In the third quarter of 2025, Foxconn's cloud and networking business (including AI servers) accounted for 42% of its revenue, surpassing consumer electronics for the first time. Through partnerships with industry giants like OpenAI, Foxconn will transition from traditional contract manufacturing to high-value-added hardware manufacturing. Additionally, the collaboration will help Foxconn gain a deeper understanding of the computational needs of large AI companies and design products that meet the requirements of advanced AI models.

Although the current cooperation agreement does not include specific purchase commitments, the market generally expects that if the collaboration enters the bulk purchase phase in the future, Foxconn's U.S. factories are likely to become the "preferred supplier" of OpenAI's domestic racks and modular data centers. By integrating the strengths of both parties, the collaboration will provide new impetus for the development of global AI technology and promote the widespread application of AI technology worldwide. Furthermore, Foxconn also plans to expand its business in the AI and robotics fields through cooperation with other tech giants such as Google.

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