OpenAI, Foxconn Partner to Co-Design AI Data Centre Hardware

OpenAI has entered into a collaboration with Hon Hai Technology Group (Foxconn) to advance work on US manufacturing readiness for next-generation AI infrastructure hardware, the companies announced on November 20.

While the agreement does not include purchase commitments, OpenAI will have early access to evaluate new systems and the option to buy them. The partnership aims to address the growing demand for physical infrastructure that supports increasingly advanced AI models.

Under the initiative, the two companies will co-design and develop multiple generations of AI data centre racks in parallel, aligning OpenAI’s infrastructure roadmap with Foxconn’s engineering and manufacturing capabilities.

Sam Altman, CEO of OpenAI, said the effort represents a generational opportunity to reindustrialise America. “This partnership is a step toward ensuring the core technologies of the AI era are built here. We believe this work will strengthen US leadership and help ensure the benefits of AI are widely shared,” he added.

As part of the collaboration, both sides will work to broaden domestic sourcing, improve rack architecture for US manufacturing, and expand local testing and assembly. The companies said these steps are intended to strengthen the US AI supply chain, speed deployment, and improve reliability.

Foxconn will also manufacture key components for AI data centres in the US, including cabling, networking, cooling, and power systems, to support the buildout of high-performance compute infrastructure.

“We at Foxconn are thrilled to partner with OpenAI… As the world’s largest manufacturer of AI data servers, Foxconn is uniquely positioned to support OpenAI’s mission with trusted, scalable infrastructure,” said Foxconn chairman Young Liu.

Previously, OpenAI announced a multi-year strategic collaboration with Broadcom to co-develop and deploy 10 gigawatts of OpenAI-designed AI accelerators and networking systems, marking a major expansion in OpenAI’s infrastructure capabilities.

Under the partnership, OpenAI will design the accelerators and systems, while Broadcom will provide Ethernet and other connectivity solutions for large-scale deployment across OpenAI facilities and partner data centres. Deployment of the racks is expected to begin in the second half of 2026 and conclude by the end of 2029.

The post OpenAI, Foxconn Partner to Co-Design AI Data Centre Hardware appeared first on Analytics India Magazine.

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