Foxconn, the world's largest contract electronics manufacturer, has announced it can now produce 1,000 artificial intelligence (AI) racks per week. Chairman Young Liu revealed this during the company's tech day, stating that the production rate is expected to increase further next year. The event was attended by key partners and clients, including Nvidia and OpenAI.
Foxconn and OpenAI have entered a partnership to co-design and manufacture AI data center racks in the United States. The collaboration aims to strengthen American AI infrastructure by producing essential hardware such as cabling, networking, and power systems for AI data centers. OpenAI will have early access to evaluate and potentially purchase these products.
Chairman Liu expressed optimism about the future of the AI industry, noting that the importance of AI is increasing significantly. He expects closer cooperation with major clients and partners in the coming year. Foxconn's net profit for the July-September quarter rose 17% year-on-year to just over 57.6 billion new Taiwan dollars ($1.8 billion), with revenue from its cloud and networking business, including AI servers, contributing the most to its growth.
OpenAI has committed $1.4 trillion to building AI infrastructure and has entered into multi-billion dollar partnerships with companies like Nvidia and AMD to expand computing power for its AI models and services. The company also collaborates with US chipmaker Broadcom on designing and manufacturing its own AI chips.
Foxconn's share price has risen 25% this year, reflecting the surge in demand for AI-related technologies. The company's leadership believes this partnership will help ensure the core technologies of the AI era are built in the U.S., strengthening national leadership and broadening the benefits of AI.
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