The OpenAI Foxconn AI data center manufacturing partnership is accelerating U.S. production of critical AI infrastructure hardware, enhancing generative AI scalability and strengthening domestic supply chains for next-generation data centers.
The OpenAI Foxconn AI data center manufacturing partnership marks a pivotal advancement in scaling the physical infrastructure necessary for generative AI innovation in the United States. This strategic alliance enables OpenAI to localize the design and production of key AI data center components within U.S. borders, reinforcing supply chain resilience and accelerating the deployment of next-generation AI systems.
In 2025, OpenAI joined forces with Foxconn, formally Hon Hai Precision Industry Co., a global manufacturing leader best known for assembling Apple’s iPhones. This collaboration focuses on co-designing and producing critical AI data center hardware—including server racks, cabling, power systems, and networking equipment—at Foxconn’s manufacturing facilities spread across multiple U.S. states such as Wisconsin, Ohio, Texas, Virginia, and Indiana.
This partnership reflects a broader industry trend toward revitalizing American manufacturing capabilities for cutting-edge technology, particularly in the AI sector where hardware demands are growing exponentially. Foxconn’s deep experience with IT components and its strategic shift towards AI hardware make it a fitting partner for OpenAI’s ambitious infrastructure scaling.
OpenAI CEO Sam Altman has described this collaboration as a “once-in-a-generation opportunity to reindustrialize America,” emphasizing its significance in building a reliable, domestically sourced foundation for the future of AI research and deployment. By manufacturing AI hardware in the US, the partnership mitigates potential disruptions related to international supply chains and tariffs while aligning with national priorities around technology security and sovereignty.
The OpenAI Foxconn AI data center manufacturing partnership also complements OpenAI’s expansive cloud infrastructure collaborations, including a landmark $38 billion deal with Amazon Web Services to provide the massive GPU compute power essential for training large language models. Together, these initiatives ensure OpenAI’s capacity to support the rapid growth of generative AI applications that span industries—from advanced natural language understanding to real-time data analysis.
Foxconn is investing between $1 billion and $5 billion to scale its U.S. production capabilities, demonstrating a firm commitment to supporting the AI ecosystem domestically. For OpenAI, this hands-on hardware partnership offers not only supply chain security but the ability to tailor AI infrastructure designs specifically to evolving computational needs.
Beyond hardware, this partnership symbolizes a significant moment where software advancements meet tangible manufacturing muscle, further enabling AI’s transformative potential across sectors. With Foxconn’s manufacturing expertise bolstering OpenAI’s infrastructure ambitions, the future of generative AI looks both scalable and secure.
