OpenAI Partner Foxconn Plans Multibillion-Dollar US AI Push

Core Insights - Hon Hai Precision Industry Co., also known as Foxconn, plans to invest between $1 billion and $5 billion to expand its manufacturing presence in the US, targeting the growing demands of AI leaders like Nvidia and OpenAI [1][3] - Foxconn has formed a partnership with OpenAI to co-design server racks and produce essential equipment for AI data centers, aiming to enhance operational efficiency during the initial phases of deployment [2][3] - The collaboration with OpenAI is part of Foxconn's strategy to diversify its business beyond iPhone assembly, as it seeks to strengthen its position in the AI hardware ecosystem [5] Investment and Production Plans - The investment will focus on increasing server production capacity in the US, with expectations to assemble up to 2,000 server racks per week by 2026 [3] - Foxconn will also manufacture cabling, power systems, and other critical components for data centers, reinforcing its commitment to the US market [3] Strategic Partnerships - Foxconn has previously collaborated with OpenAI and Oracle on the Stargate project, which involves operating a server production site owned by SoftBank [5] - OpenAI is working with Oracle and SoftBank on a significant initiative to invest $500 billion in US data centers and AI infrastructure over the coming years [6]