Foxconn Chairman Young Liu said the company is working on a new collaboration with OpenAI, though he gave no details. Liu also said the AI industry is not in a bubble and that Foxconn expects to maintain double-digit growth next year.
Foxconn flagged on Friday that a collaboration with OpenAI was in the works, though details were scant. Chairman Young Liu told reporters at the company's annual technology event that he had met OpenAI Chief Executive Sam Altman earlier in the day. He said an announcement would follow once details were confirmed.
Any deal would build on last year's agreement
Liu did not elaborate. Any new deal would build upon last year's agreement between the two firms to work together on designing and engineering data-centre racks, components and other AI hardware.
Foxconn, formally called Hon Hai Precision Industry, is Nvidia's biggest AI server maker. It is increasingly relying on AI infrastructure for growth. In August, the company said its cloud and networking products segment, which includes AI servers, accounted for 51% of second-quarter revenue, exceeding 50% for the first time.
Liu rejects the bubble talk
AI-sector stocks have been hit hard by concerns that relentless heavy investment is not sustainable amid climbing borrowing costs. Liu, however, said the industry was not in a bubble. He added that Foxconn expects to maintain double-digit growth next year.
Foxconn has six factory buildings in Houston, Texas, where it manufactures AI servers for Nvidia. Liu sees a need for further expansion.
Humanoid robots deployed at Texas facilities
Separately, Foxconn is making progress on plans to deploy humanoid robots at its Houston plant. Brand Cheng, chairman of unit Foxconn Industrial Internet (FII), told Reuters that more than 10 humanoid robots had been deployed at its Texas facilities for internal use. He said Foxconn plans to extend deployment beyond Texas.
FII introduced two wheeled models in October, according to presentation materials seen by Reuters. One lifts things vertically, and the other can bend at the waist for assembly as well as loading and unloading tasks. The unit is developing AI models for humanoid robots based on Nvidia's GR00T foundation model.
Source: Investing.com
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