OpenAI and Foxconn Partner to Develop Next-Generation AI Infrastructure in the United States

A new strategic collaboration focuses on co-designing high-performance data center hardware and domestic manufacturing to secure the American AI supply chain. By Embedded Systems Engineering / 22 Nov 2025
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OpenAI and Hon Hai Technology Group (Foxconn) have announced a collaboration dedicated to the design and U.S.-based manufacturing of next-generation AI infrastructure hardware. Under the agreement, OpenAI will provide insights into emerging hardware requirements across the AI industry to inform Foxconn’s design and development efforts. This work is slated for production at Foxconn’s facilities within the United States.

The partnership addresses the growing demand for physical infrastructure purpose-built for advanced AI models. By combining OpenAI’s roadmap for future model needs with Foxconn’s manufacturing scale, the companies aim to strengthen domestic supply chains and accelerate the deployment of high-performance systems. While the initial agreement involves no financial obligations or purchase commitments, OpenAI will receive early access to evaluate the systems and holds an option for future procurement.

The initiative is structured around three primary technical and industrial goals. First, the companies will co-design and engineer multiple generations of AI data center racks in parallel. This parallel development is intended to synchronize hardware availability with the rapid evolution of AI models, ensuring new systems can be brought online quickly.

Second, the collaboration seeks to simplify the U.S. AI supply chain by improving rack architecture for domestic manufacturing. This includes broadening component sourcing to incorporate a wider variety of chipsets and domestic suppliers, alongside expanded localized testing and assembly to improve system reliability.

Finally, Foxconn will manufacture critical data center components—including cabling, networking, cooling, and power systems—within the U.S. These components are essential for the rapid construction of the high-performance compute environments required for modern AI workloads.

“We at Foxconn are thrilled to partner with OpenAI—a pioneer at the forefront of the AI digital age,” said Foxconn Chairman Young Liu. “As the world’s largest manufacturer of AI data servers, Foxconn is uniquely positioned to support OpenAI’s mission with trusted, scalable infrastructure that accelerates innovation and broadens access to transformative AI capabilities for businesses and users worldwide.”

“The infrastructure behind advanced AI is a generational opportunity to reindustrialize America,” said Sam Altman, CEO of OpenAI. “This partnership is a step toward ensuring the core technologies of the AI era are built here. We believe this work will strengthen U.S. leadership and help ensure the benefits of AI are widely shared.”

Posted by Embedded Systems Engineering Connect

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