OpenAI & Foxconn Join Forces to Boost US AI Data Centers

OpenAI has taken a major step to strengthen the U.S. AI ecosystem by partnering with Taiwan’s electronics giant Foxconn. The collaboration focuses on designing and producing critical components for AI data centers across the United States.

Foxconn, renowned for assembling Apple products and making AI servers for Nvidia, will co-develop AI data center racks with OpenAI. The company will manufacture essential hardware including cabling, networking, and power systems at its U.S. factories in Wisconsin, Ohio, and Texas. OpenAI will have early access to test and potentially purchase these components, giving it a strategic edge in building robust AI infrastructure.

The partnership reflects Foxconn’s broader diversification strategy. Beyond smartphones, the company has been expanding into electric vehicles and acquiring electronics firms to broaden its portfolio. At a recent showcase, Foxconn’s EV arm, Foxtron, unveiled the Model A, an affordable electric vehicle highlighting the company’s innovation in multiple technology sectors.

This move also strengthens Taiwan’s position in high-tech computing. By keeping technology and expertise local, the partnership ensures data security while maintaining Taiwan’s strategic edge in AI technologies.

For OpenAI, the deal fits into a massive infrastructure expansion. The company has committed $1.4 trillion to building AI capabilities and recently forged multi-billion-dollar partnerships with Nvidia, AMD, and Broadcom for chips and computing power. OpenAI expects revenues to surpass $20 billion this year, with long-term projections reaching hundreds of billions by 2030.

Foxconn, meanwhile, has benefited from the AI surge. Its shares have risen 25% this year, and its July–September quarter net profit climbed 17% to $1.8 billion, largely fueled by its cloud, networking, and AI server business.

As AI becomes increasingly central to technology and business, collaborations like this highlight the strategic race to develop homegrown infrastructure while balancing innovation with data security.