The world’s biggest contract electronics maker says it is working on a new partnership with the ChatGPT developer, with details due once talks conclude, while its chairman rejects talk of an AI bubble and predicts continued double-digit growth.
Foxconn, the world’s largest contract electronics manufacturer, is in discussions on a new partnership with OpenAI and plans to disclose the particulars once negotiations are complete, Chairman Young Liu said.
Liu confirmed the development at the company’s annual technology event, shortly after meeting OpenAI chief executive Sam Altman. He did not say what the arrangement would cover or when it might take effect.
Any new deal would build on a collaboration the two companies announced last year, which centred on designing and engineering data centre racks, components and other hardware needed to run artificial intelligence infrastructure.
AI servers drive Foxconn’s expansion
Foxconn, formally known as Hon Hai Precision Industry, is the biggest builder of AI servers for Nvidia. It has been widening its production capacity to keep pace with orders from technology firms pouring money into AI infrastructure.
Describing its American operations, Liu said the company runs six factory buildings in Houston, Texas, where it assembles AI servers for Nvidia. He added that further expansion in the region looks necessary as demand for AI-related products keeps climbing.
The cloud and networking products division, which includes AI servers, has become a major earnings engine. In August, Foxconn reported that the unit generated 51% of its second-quarter revenue, the first time it had passed the halfway mark, underscoring how central AI hardware has become to the group.
Chairman dismisses bubble fears
Liu also responded to worries about whether the AI boom can last. Shares of AI-linked companies have come under pressure amid concerns that technology firms are spending heavily on infrastructure without matching returns, and higher borrowing costs have deepened doubts about whether the current pace of investment is sustainable.
Liu said he does not believe the industry is in a bubble. He said Foxconn expects to sustain double-digit growth next year, supported by steady demand for AI servers and related infrastructure.
The company has not shared further financial details or specific targets for the planned OpenAI collaboration.
If concluded, the partnership could reinforce Foxconn’s standing in AI hardware manufacturing at a time when technology companies continue to channel capital into data centres and computing capacity.
