OpenAI taps iPhone assembler Foxconn to manufacture data center components in U.S.

Core Insights - OpenAI is partnering with Foxconn to design and build AI data center components in the U.S., marking a significant step in its infrastructure development plans [1][2] - The partnership aims to accelerate infrastructure deployment and secure long-term U.S. capacity, with OpenAI gaining early access to evaluate and potentially purchase systems produced by Foxconn [2][3] - OpenAI plans to co-develop multiple generations of AI servers and manufacture core components at Foxconn's U.S. facilities, which are located in several states including Wisconsin, Ohio, Texas, Virginia, and Indiana [3] Financial Commitments - OpenAI has announced spending commitments of approximately $1.4 trillion, raising concerns about its ability to generate sufficient profit to justify these investments [4] - The company anticipates reaching $20 billion in annualized revenue by the end of this year and hundreds of billions by 2030 [4] Previous Partnerships - OpenAI has a pending $100 billion agreement with Nvidia for phased investments as it builds out its infrastructure, along with cloud partnerships with major companies like Microsoft, Google, and Amazon [5] - The collaboration with Foxconn adds a manufacturing layer that localizes OpenAI's supply chain and may expedite deployment [6] Foxconn's Role - Foxconn is recognized for assembling Apple's iPhones and has expanded into AI and automotive manufacturing, building server racks tailored for AI workloads [6] - The company has a controversial history in the U.S., including a failed project in Wisconsin that was intended for flat-panel displays, which is now being repurposed for an AI data center by Microsoft [7]