OpenAI has entered a strategic collaboration with Hon Hai Precision Industry Co. (Foxconn) to co-design and manufacture next-generation data-centre hardware in the United States. The partnership marks a significant step in OpenAI’s push to scale infrastructure for rapidly expanding AI workloads.
Building Next-Gen AI Hardware on US Soil
Under the agreement, Foxconn and OpenAI will jointly develop server racks, power systems, cabling and essential data-centre components, with manufacturing planned across Foxconn’s US facilities. OpenAI will contribute insights on upcoming AI hardware requirements, helping Foxconn design systems capable of supporting large-scale model training and inference.
Both companies clarified that the partnership does not include mandatory purchase commitments but establishes a long-term roadmap for US-built AI infrastructure.
“This partnership ensures the core technologies of the AI era are built here,” said Sam Altman, CEO, OpenAI. “It strengthens US leadership and helps ensure the benefits of AI are widely shared.”
OpenAI Expands Control Over Its Supply Chain
The collaboration comes at a time when OpenAI is accelerating deals to secure compute capacity. In recent months, the company has signed multibillion-dollar agreements with Nvidia, AMD, and major cloud providers, while also moving to directly procure chips and components from Broadcom.
OpenAI and its partners, including Oracle and SoftBank, have outlined a plan for $500 billion in US data-centre investments, part of a larger ambition to support national AI infrastructure over the coming decade.
Foxconn Deepens AI Ambitions
For Foxconn, the partnership strengthens its long-term goal of expanding beyond smartphone assembly and becoming a key hardware provider for the AI economy. The company is already scaling its AI server production in the US, aligning with the administration’s focus on reshoring strategic technologies.
Final Take
The OpenAI–Foxconn collaboration signals a broader shift: AI infrastructure is becoming a national priority, and US-based manufacturing will play a central role in the next era of advanced compute.
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