OpenAI, the company behind the groundbreaking ChatGPT, is joining forces with Foxconn, the world's largest electronics manufacturer, in a strategic partnership to develop and produce AI hardware in the United States. This collaboration aims to bolster the U.S. AI supply chain, accelerate the deployment of advanced AI systems, and meet the growing demand for efficient and high-performance computing infrastructure.
The partnership will focus on co-designing and manufacturing next-generation AI infrastructure hardware, including data center systems. OpenAI will provide insights into emerging system requirements for advanced AI models, which will inform Foxconn's design and development efforts for hardware to be manufactured at its U.S. facilities. This collaboration seeks to create purpose-built compute platforms that can support higher performance, greater energy efficiency, and faster deployment of AI models.
A key element of the initiative involves designing multiple generations of AI data center racks in parallel. Given the rapid advancements in component innovation and AI model complexity, parallel generation planning is essential to avoid capacity issues and lagging deployment timelines. The companies aim to improve rack architecture for U.S. manufacturing, broaden sourcing to include more domestic suppliers, and expand localized testing and assembly.
Foxconn will manufacture critical data center components in the U.S., including cabling, networking equipment, cooling solutions, and power systems. By localizing production, the companies intend to ensure that the economic benefits reach American workers and manufacturers, while also meeting the demands of current and future AI workloads. Foxconn has facilities in Ohio, Texas, Wisconsin, Indiana, and Virginia.
The partnership does not include any initial purchase commitments or financial obligations; however, OpenAI will have early access to evaluate these systems and the option to purchase them.
This collaboration aligns with OpenAI's broader strategy of investing heavily in AI infrastructure. It has also partnered with Nvidia and AMD to expand its computing power and is working with Broadcom to design its own AI chips. Furthermore, OpenAI acquired Jony Ive's hardware startup, io, earlier in 2025 for $6.4 billion in equity, signaling its serious intent to develop AI hardware. CEO Sam Altman has revealed that OpenAI has produced its first hardware prototypes and aims to launch a device within two years, potentially challenging established players like Apple.
Foxconn is also expanding its presence in the U.S., with plans to invest $569 million and create 1,374 new jobs in Wisconsin over the next four years. This expansion is driven by rising domestic demand and the need for resilient U.S. supply chains, particularly for advanced data-driven technologies.
The OpenAI-Foxconn partnership is a significant step towards strengthening the U.S. AI ecosystem and ensuring American leadership in AI. By combining OpenAI's AI expertise with Foxconn's manufacturing capabilities, the collaboration seeks to drive innovation, improve efficiency, and accelerate the development and deployment of advanced AI systems.
