OpenAI, Foxconn Team Up To Build U.S. AI Hardware

Microsoft MSFT backed OpenAI (OPENAI) is taking a big swing at reshaping the U.S. AI hardware landscape, teaming up with Foxconn Technology (FXCOF), the well-known Apple manufacturing partner. The idea is simple: build more of the core equipment for OpenAI's growing network of data centers right here in the United States.

In this new partnership, OpenAI will lay out what future AI hardware needs to look like, and Foxconn will use that guidance to design and produce multiple generations of AI servers at the same time. Foxconn plans to manufacture everything from cooling and cabling to networking and power systems at its facilities across Wisconsin, Ohio, Texas, Virginia and Indiana.

There's no upfront purchase commitment from OpenAI, but the company will get early access to review the systems and the option to buy them once ready. Both sides say the goal is to speed up AI deployment while tightening up the U.S. supply chain.

Foxconn said the collaboration blends OpenAI's vision for next-gen AI hardware with its own ability to build at massive scale. Sam Altman called the deal a step toward ensuring the core technologies of the AI era are built here at home.

With AI demand exploding, whoever secures reliable U.S. manufacturing first will hold a major advantage. Now the focus shifts to how quickly Foxconn can start turning out U.S.-built AI systems.