OpenAI and Taiwan's Foxconn to partner in AI hardware design and
manufacturing in the US
[November 21, 2025] By
CHAN HO-HIM and TAIJING WU
TAIPEI, Taiwan (AP) — OpenAI and Taiwan electronics giant Foxconn have
agreed to a partnership to design and manufacture key equipment for
artificial intelligence data centers in the U.S. as part of ambitious
plans to fortify American AI infrastructure.
Foxconn, which makes AI servers for Nvidia and assembles Apple products
including the iPhone, will be co-designing and developing AI data center
racks with OpenAI under the agreement, the companies said in separate
statements on Thursday and Friday.
The products Foxconn will manufacture in its U.S. facilities include
cabling, networking and power systems for AI data centers, the companies
said. OpenAI will have “early access” to evaluate and potentially to
purchase them.
Foxconn has factories in the U.S., including in Ohio and Texas. The
initial agreement does not include financial obligations or purchase
commitments, the statements said.
The Taiwan contract manufacturer has been moving to diversity its
business, developing electric vehicles and acquiring other electronics
companies to build out its product offerings.
“This partnership is a step toward ensuring the core technologies of the
AI era are built here,” Sam Altman, CEO of San Francisco-based OpenAI,
said in the statement. “We believe this work will strengthen U.S.
leadership and help ensure the benefits of AI are widely shared.”
OpenAI has committed $1.4 trillion to building AI infrastructure. It
recently entered into multi-billion partnerships with Nvidia and AMD to
expand the extensive computing power needed to support its AI models and
services. It is also partnering with US chipmaker Broadcom in designing
and making its own AI chips.
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Visitors listen to the introduction of NVIDIA GB300 NVL72 AI server
during the Hon Hai Tech Day (HHTD 25) at the Nangang Exhibition
Center in Taipei, Taiwan, Friday, Nov. 21, 2025. (AP Photo/Chiang
Ying-ying)
 But its massive spending plans have
worried investors, raising questions over its ability to recoup its
investments and remain profitable. Altman said this month that
OpenAI, a startup founded in 2015 and maker of ChatGPT, is expected
to reach more than $20 billion in annualized revenue this year,
growing to "hundreds of billions by 2030.”
Foxconn's Taiwan-listed share price has risen 25% so far this year,
along with the surge in prices for many tech companies benefiting
from the craze for AI.
The Taiwan company’s net profit in the July-September quarter rose
17% from a year earlier to just over 57.6 billion new Taiwan dollars
($1.8 billion), with revenue from its cloud and networking business,
including AI servers, contributing the most business.
“We believe the importance of the AI industry is increasing
significantly,” Liu said during Foxconn’s earnings call this month.
“I am very optimistic about the development of AI next year, and
expect our cooperation with major clients and partners to become
even closer,” said Liu.
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