Hon Hai Group announces cooperation with OpenAI and Google parent company

Foxconn parent companyHon Hai Group said on Friday that it will work with U.S. artificial intelligence startup OpenAI to design and manufacture data center racks, components and other artificial intelligence hardware.
The company said that although the original agreement did not include a purchase commitment or financial obligation, OpenAI will evaluate the systems in advance and have the option to purchase them.
This collaboration will enable Hon Hai to understand the growing computing needs of large artificial intelligence companies and help design products that meet the requirements of advanced large language models.
The deal expands OpenAI's involvement in hardware design after the company has announced a partnership with Broadcom to develop its own custom chips.
Hon Hai plans to produce data center components, including cables, power systems and network equipment, at its U.S. factories to strengthen the supply chain and circumvent any tariffs that the Trump administration may impose.
In addition, Hon Hai also announced a joint venture with Alphabet to build universal robots and automation in manufacturing facilities to speed up production. The cooperation will initially cover a range of scenarios including assembly, inspection, machine maintenance and logistics applications.