Foxconn Plans New OpenAI Tie-Up, Rejects AI Bubble
Foxconn says a new OpenAI deal is in the works after chairman Young Liu met Sam Altman, as the AI server maker rejects AI bubble fears and eyes strong growth.
Foxconn, the world's biggest contract electronics manufacturer, said on Friday, October 30, 2026, that a new collaboration with OpenAI is in the works. Chairman Young Liu told reporters at the company's annual Hon Hai Tech Day in Taipei that he had met OpenAI chief executive Sam Altman earlier in the day, and that an announcement will follow once details are confirmed.
What Foxconn announced
Liu gave few details about the planned tie-up. He said only that it would build on an agreement the two companies signed in 2025 to work together on designing and engineering data-center racks, components and other AI hardware. Liu told Nikkei Asia that the collaboration on AI data center hardware had been progressing well, with more concrete plans likely to be announced later. Neither Foxconn nor OpenAI has said what the new deal will cover or when it will be announced.
Why the tie-up matters
Foxconn, formally known as Hon Hai Precision Industry, is Nvidia's biggest AI server maker, so a deeper partnership with OpenAI reaches well beyond one company. OpenAI builds the AI models; Foxconn builds much of the physical hardware those models run on. The shift toward AI hardware is already reshaping Foxconn's business. The company said in August that its cloud and networking products segment, which includes AI servers, accounted for 51% of second-quarter revenue, the first time it has passed 50%. Foxconn has six factory buildings in Houston, Texas, where it manufactures AI servers for Nvidia, and Liu said the company sees a need for further expansion there. He added that Foxconn has been expanding production for AI data center servers in Taiwan, Vietnam, Mexico and the United States. The company has 241 manufacturing sites and offices in 24 countries. Its top clients include Nvidia, Apple, Google, Amazon and Cisco, and it has 56 sites in the Americas alone, including its large manufacturing campus in Houston.
Humanoid robots at work in Houston
Separately, Foxconn said it is making progress on putting humanoid robots to work in its own factories. Brand Cheng, chairman of Foxconn's industrial unit Foxconn Industrial Internet, told Reuters that more than 10 humanoid robots have been deployed at its Texas facilities for internal use, with plans to extend the rollout beyond Texas. The unit introduced two wheeled robot 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 the humanoid robots based on Nvidia's GR00T foundation model. At the same Tech Day event, Foxconn also debuted Nvidia's Spectrum-X CPO tray, an optical technology that moves the light engine closer to the main switch chip than conventional pluggable transceivers.
No AI bubble, says Foxconn's chairman
Liu pushed back firmly against worries that the AI boom is a bubble. "The argument that the AI industry is bubbling doesn't hold up," he told a group interview on the sidelines of the Tech Day event, adding that demand for the key Nvidia server supplier was clear and strong. He said Foxconn expects double-digit sales growth in 2027. The comments land in a week when investors have questioned whether the huge spending on AI infrastructure will pay off quickly, after sharp share falls for several big tech companies.
What happens next
The next step is the promised announcement, which will show how far the new Foxconn-OpenAI deal goes and whether it moves beyond data-center hardware into new products or services. Watchers will also look for more detail on the Houston expansion and on how fast the humanoid robot rollout spreads beyond Texas. For now, Foxconn's message is clear: AI hardware demand is real, it is growing, and the company that builds most of the world's AI servers plans to stay at the center of it.
Sources
- Reuters - https://www.reuters.com/world/china/foxconn-working-new-tie-up-with-openai-says-there-is-no-ai-bubble-2026-10-30/ - Nikkei Asia - https://asia.nikkei.com/business/technology/foxconn-chief-downplays-ai-bubble-concerns-sees-strong-2027-growth