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Foxconn Says New OpenAI Collaboration Is in the Works as AI Hardware Push Expands

Foxconn says a new OpenAI collaboration is in development, with details still unconfirmed, as it expands AI-server manufacturing and factory robotics.

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Nov 1, 2026 - 02:32

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Foxconn branding in Taipei, Taiwan, in an April 2025 file photo. Photo: Anadolu / Getty Images.

Foxconn Says New OpenAI Collaboration Is in the Works as AI Hardware Push Expands

Foxconn is developing a new collaboration with OpenAI, chairman Young Liu said on Oct. 30, offering a fresh sign that the contract manufacturer and the artificial-intelligence company are extending their work on the physical systems that support advanced AI.

Liu told reporters at Foxconn’s annual Hon Hai Tech Day in Taipei that he had met OpenAI chief executive Sam Altman earlier that day. He said the companies would announce details once the terms were confirmed, but did not describe the proposed project or give a timetable.

The announcement is therefore an early company signal rather than a finalized deal. Reuters reported that any new arrangement would build on a 2025 agreement under which the companies agreed to work together on the design and engineering of data-centre racks, components and other AI hardware. OpenAI’s announcement of that earlier agreement said the work was focused on next-generation AI infrastructure, U.S. manufacturing readiness and equipment such as cabling, networking, cooling and power systems.

AI infrastructure becomes central to Foxconn’s growth

Foxconn, formally Hon Hai Precision Industry, is Nvidia’s largest AI-server maker, according to Reuters. The company has six factory buildings in Houston, Texas, where it manufactures AI servers for Nvidia, and Liu said Foxconn sees a need for further expansion.

The company said in August that its cloud and networking products segment, which includes AI servers, represented 51% of second-quarter revenue. That was the first time the segment had exceeded half of Foxconn’s quarterly revenue. Liu also said Foxconn expects double-digit growth in 2027 and rejected the idea that the AI industry is in a bubble, even as higher borrowing costs have intensified concerns about the sustainability of heavy AI investment.

Foxconn’s official HHTD26 materials describe the event as a showcase for artificial intelligence, smart manufacturing and the company’s capabilities across components, systems and AI racks. The event’s broader focus puts the proposed OpenAI work in the context of Foxconn’s effort to move beyond assembly and capture more value from the AI-infrastructure supply chain.

Humanoid robots already operating in Texas

The company is also testing automation at its U.S. facilities. Brand Cheng, chairman of Foxconn Industrial Internet, told Reuters that more than 10 humanoid robots had been deployed for internal use at Foxconn’s Texas sites. The company plans to extend deployment beyond Texas.

Presentation materials cited by Reuters showed two wheeled models introduced in October: one designed to lift objects vertically and another able to bend at the waist for assembly, loading and unloading. Foxconn Industrial Internet is developing AI models for the humanoid robots based on Nvidia’s GR00T foundation model.

For now, the scope of the new Foxconn–OpenAI collaboration is unknown. The next substantive update will depend on the companies confirming what they plan to build, where it will be made and how the work relates to their existing AI-hardware partnership.