OpenAI and Foxconn to co‑design multiple generations of AI data‑centre racks
OpenAI has hooked up with Foxconn - the Taiwanese factory you probably know for putting together phones and laptops - to sort out the hardware that runs its models. The idea is to mix OpenAI’s long-term infrastructure plans with Foxconn’s knack for large-scale engineering and production. It sounds slick, but I keep wondering how they’ll keep design cycles for a few rack generations in sync without tripping each other’s roadmaps.
Building AI data-centre racks isn’t just stacking chips; it means juggling supply chains, cooling tricks and power limits fast enough to keep up with new model drops. If it works, OpenAI might finally get a steadier hardware pipeline, and Foxconn could snag a slice of a market that’s usually ruled by a few specialist vendors. It feels less like a one-off handshake and more like a multi-year push to line up software goals with real-world manufacturing.
Under the plan, the two will co-design and roll out several generations of AI data-centre racks side by side, syncing OpenAI’s infrastructure roadmap with Foxconn’s engineering and manufacturing chops. Sam Altman, OpenAI’s CEO, said the effort looks like a generational opportunity.
Under the initiative, the two companies will co-design and develop multiple generations of AI data centre racks in parallel, aligning OpenAI's infrastructure roadmap with Foxconn's engineering and manufacturing capabilities. Sam Altman, CEO of OpenAI, said the effort represents a generational opportunity to reindustrialise America. "This partnership is a step toward ensuring the core technologies of the AI era are built here.
We believe this work will strengthen US leadership and help ensure the benefits of AI are widely shared," he added. As part of the collaboration, both sides will work to broaden domestic sourcing, improve rack architecture for US manufacturing, and expand local testing and assembly. The companies said these steps are intended to strengthen the US AI supply chain, speed deployment, and improve reliability.
Foxconn will also manufacture key components for AI data centres in the US, including cabling, networking, cooling, and power systems, to support the buildout of high-performance compute infrastructure. "We at Foxconn are thrilled to partner with OpenAI… As the world's largest manufacturer of AI data servers, Foxconn is uniquely positioned to support OpenAI's mission with trusted, scalable infrastructure," said Foxconn chairman Young Liu. Previously, OpenAI announced a multi-year strategic collaboration with Broadcom to co-develop and deploy 10 gigawatts of OpenAI-designed AI accelerators and networking systems, marking a major expansion in OpenAI's infrastructure capabilities.
Under the partnership, OpenAI will design the accelerators and systems, while Broadcom will provide Ethernet and other connectivity solutions for large-scale deployment across OpenAI facilities and partner data centres.
Will this partnership deliver the hardware needed for tomorrow's models? OpenAI and Foxconn signed a deal on Nov 20 to co-design several generations of AI data-center racks, hoping to line OpenAI’s roadmap up with Foxconn’s production capacity. The pact doesn’t force either side to buy anything; instead, OpenAI gets early access to the prototypes and holds an option to place orders later.
That leaves the eventual scale pretty fuzzy, and it’s not obvious whether the trial run will turn into a steady supply chain. By working on multiple rack versions at once, the two firms aim to keep up with the swelling demand for physical infrastructure that can handle ever-larger models. Sam Altman called the effort a “generational opportunity,” hinting at strategic weight, yet the lack of firm purchase promises keeps expectations in check.
In the end, the collaboration will only pay off if the co-designed hardware hits the performance and price targets OpenAI needs as its models evolve.
Further Reading
- OpenAI and Foxconn collaborate to strengthen U.S. AI infrastructure - OpenAI
- OpenAI partners with Foxconn to develop AI data center kit - Data Center Knowledge
- OpenAI partners with Foxconn to optimize data center design - Data Center Dynamics
- OpenAI and Taiwan's Foxconn to partner in AI hardware design and manufacturing in US - Tech Xplore
- OpenAI and Foxconn set out plan to design and build AI data centre hardware in the US - National Technology News
Related Reading
Browse all OpenAI news →
Business & Startups Oracle, NVIDIA deepen tie-up to speed sovereign AI and government digital shift
Business & Startups Skilling programs lag AI; students must prioritize aspiration and depth
Business & Startups EPAM and Cursor partner to scale AI coding for global enterprise customers
Related Topic Consensus uses GPT-5 and Responses API to speed scientific research
Research & Benchmarks
Related Topic Developers say Sora, unlike Vine/TikTok, is not about people in social media
Research & Benchmarks
Common Questions Answered
How will OpenAI and Foxconn coordinate design cycles for multiple generations of AI data‑centre racks?
The two firms will co‑design and develop the racks in parallel, aligning OpenAI's long‑term infrastructure roadmap with Foxconn's engineering and manufacturing capabilities. This simultaneous approach is intended to keep both companies' development timelines synchronized without slowing either side's roadmap.
What does Sam Altman say about the partnership’s impact on US leadership and reindustrialisation?
Sam Altman describes the collaboration as a "generational opportunity to reindustrialise America," emphasizing that building core AI technologies domestically will strengthen U.S. leadership in the AI era. He believes the partnership will help ensure critical AI hardware is produced on American soil.
Does the agreement between OpenAI and Foxconn require either party to purchase the co‑designed racks?
No, the deal does not bind either side to a purchase commitment. OpenAI will receive early access to evaluate the systems and retains an option to buy, while Foxconn is not obligated to sell a predetermined volume.
When was the OpenAI‑Foxconn partnership announced and what is its primary goal regarding OpenAI’s infrastructure roadmap?
The partnership was announced on November 20. Its primary goal is to match OpenAI’s infrastructure roadmap to Foxconn’s large‑scale manufacturing capacity by co‑designing several generations of AI data‑centre racks.