OpenAI Partners with Foxconn to Boost AI Hardware Production in the U.S.

Published: 21 Nov 2025

Author: Precedence Research

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AI has become an essential part of every country’s growth. Thus, many leading players are collaborating to develop an AI ecosystem that will become a global AI frontier, recognizing its potential. In consequence, leading tech giants OpenAI and Taiwan’s electronics leader Foxconn collaborated to design and manufacture key components for artificial intelligence data centers in the U.S. to strengthen AI infrastructure there.

Foxconn Enterprise is highly popular for providing AI servers to leading tech company NVIDIA and assembling Apple products such as the iPhone. From now on, Foxconn will, in accordance with its agreements, design and develop AI data center racks with OpenAI. Many products will be manufactured by Foxconn in the U.S., including cabling, networking, and power systems for AI data centers, and OpenAI will have initial access to purchase them for potential evaluation.

Foxconn has its own factories in the U.S., including in Ohio and Texas. Though an agreement does not include financial obligations or purchasing compulsion, as per the sources' data, it is important to consider it. The Taiwan contract manufacturer is looking to expand its business by developing EVs and partnering with or acquiring other electronic companies to build its own product offerings.

Sam Altman, CEO of San Francisco-based OpenAI, said, “This partnership is a step toward ensuring the core technologies of the AI era are built here. We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

Moreover, OpenAI has committed a whopping $1.4 trillion to building AI infrastructure and has entered a multi-billion-dollar partnership with leading tech companies, NVIDIA and AMD, to expand the computing power needed to support its AI models and services. They are further collaborating with the U.S. chipmaker Broadcom to design and develop their own AI chips. However, this massive spending has raised concerns among investors, who are skeptical of its ability to remain profitable under these circumstances. Altman ensured, by saying that this month, OpenAI is expected to reach more than $20 billion in terms of annual revenue and move to reach up to ‘hundreds of billions’ by 2030.

Taiwan-listed Foxconn's share price has risen by 25% so far this year, and several tech companies have seen surges amid the popularity of AI. During Foxconn's earnings call this month, Liu said, “We believe the importance of the AI industry is increasing significantly. I am very optimistic about the development of AI next year and expect our cooperation with major clients and partners to become even closer.”