OpenAI and Foxconn Partner to Manufacture Advanced AI Hardware in the US

OpenAI, the artificial intelligence developer, has established a strategic partnership with Foxconn, formally known as Hon Hai Technology Group, to jointly design and manufacture advanced AI data center hardware within the United States. The agreement, formalized near the close of November 2025, is aimed at strengthening the domestic supply chain for critical AI infrastructure and accelerating the deployment of sophisticated AI systems nationwide.

The collaboration focuses on developing multiple generations of AI server racks, specifically aligned with OpenAI’s future model roadmap to ensure hardware capabilities match software advancements. Foxconn, a major contract electronics manufacturer, will be responsible for producing essential subsystems, including power delivery, networking apparatus, and advanced cooling solutions, utilizing its expanding facilities across several US states. Manufacturing operations are slated for Foxconn locations in states such as Wisconsin, Ohio, Texas, Virginia, and Indiana, signaling a commitment to American industrial capacity in high-tech manufacturing.

The partnership structure grants OpenAI early access to evaluate the systems fabricated by Foxconn, retaining an option to procure the hardware at a later stage, though it imposes no immediate financial commitments or purchase mandates. This arrangement allows the AI firm to de-risk its hardware procurement strategy while securing future computational needs through domestically produced, custom-designed infrastructure. Foxconn President Young Liu indicated the company intends to substantially increase its current capacity of approximately 1,000 AI racks per week throughout 2026 to address escalating demand.

Foxconn is strategically pivoting its focus, dedicating an annual investment between $2 billion and $3 billion specifically toward artificial intelligence initiatives, moving beyond sole reliance on consumer electronics. OpenAI Chief Executive Officer Sam Altman characterized the industrial alignment as a "generational opportunity to reindustrialize America," emphasizing the strategic need to build the core technologies of the AI era domestically. This move addresses a recognized gap in OpenAI's prior infrastructure arrangements, which heavily relied on major cloud providers and component suppliers like Nvidia, by now securing a dedicated domestic manufacturing partner for physical assembly and integration.

The alignment between a leading AI software architect and a major hardware fabricator reflects a broader trend toward vertical integration in the technology sector, driven by geopolitical considerations and the need for supply chain resilience. Foxconn’s existing role as a supplier of AI server racks positions it uniquely to meet the stringent specifications required for OpenAI's next-generation computing demands through comprehensive system design and production within US borders.