Key facts
- Foxconn is in talks with OpenAI for a new collaboration.
- Foxconn expects double-digit growth next year.
- Foxconn sees AI infrastructure as key to growth.
Foxconn, the world's largest contract electronics manufacturer, is in discussions with OpenAI for a new collaboration, according to Chairman Young Liu. Liu met with OpenAI CEO Sam Altman earlier on Friday, with an announcement expected once details are confirmed. This potential deal builds on a prior agreement between the two companies to collaborate on data-center racks, components, and other AI hardware. Foxconn, a key supplier of AI servers for Nvidia, views AI infrastructure as crucial for its future growth. Despite concerns about a potential AI bubble due to heavy investment and rising borrowing costs, Liu expressed confidence that the industry is not overvalued and anticipates Foxconn will maintain double-digit growth next year. The company has expanded its AI server manufacturing operations in Houston, Texas, and reported that its AI server segment accounted for over 50% of its revenue in the second quarter.