According to a report, Liu Young-way, Chairman of the world's largest electronics contract manufacturer Foxconn, said on Friday that the company is in talks with leading U.S. artificial intelligence developer OpenAI about a new partnership, with details to be announced once confirmed.
Speaking to reporters at the company's annual tech showcase event, Liu said he had met with OpenAI CEO Sam Altman earlier that day but did not disclose further information.
He also made clear that there is no bubble in the AI industry, and Foxconn expects to maintain double-digit growth next year.
If the partnership is reached, it would extend an agreement between the two companies from last year, under which they agreed to cooperate on the design and engineering of data center racks, components, and other AI hardware.
Foxconn, officially known as Hon Hai Precision Industry, is Nvidia's largest AI server manufacturer and is increasingly relying on its AI infrastructure business to drive growth.
Recently, market concerns that the AI industry's continued massive spending may not be sustainable amid rising borrowing costs have dealt a heavy blow to AI sector stocks.
In response, Liu said there is no bubble in the industry, and Foxconn expects to maintain double-digit growth next year.
Liu said Foxconn has six factory buildings in Houston, Texas, producing AI servers for Nvidia, and he believes further expansion is necessary.
The company said in August that its cloud and networking products business, including AI servers, accounted for 51% of its second-quarter revenue, exceeding 50% for the first time.
Humanoid Robots Deployed at Houston Factory
In addition, Foxconn's plan to deploy humanoid robots at its Houston factory is making progress.
Zheng Hongmeng, Chairman of Foxconn's subsidiary Industrial Fulian, said on Friday that more than ten humanoid robots have been deployed at the Texas campus for internal operations. He added that Foxconn plans to expand the deployment beyond Texas.
According to reports, presentation materials show that Industrial Fulian launched two wheeled robots in October: one that can vertically lift objects, and another that can bend at the waist for assembly and loading tasks. The subsidiary is developing AI models for humanoid robots based on Nvidia's GR00T foundation model.
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