Foxconn plans new OpenAI tie-up and says there is no AI bubble

Foxconn, the world’s biggest contract electronics maker, said on Friday, 30 October, that a new collaboration with OpenAI was in the works. Chairman Young Liu told reporters at the company’s annual technology event in Taipei that he had met OpenAI chief executive Sam Altman earlier that day, and that details would be announced once they were confirmed.

The new work would build on a deal the two companies announced in November 2025 to design and build next-generation AI data-centre hardware, including racks, networking, cabling, cooling and power systems. That earlier agreement carried no purchase commitments: OpenAI was given early access to test the equipment and an option to buy it.

Liu pushed back on fears that heavy spending on AI has created a bubble. He said demand for computing power remained strong and that Foxconn expected to keep growing its revenue by double digits next year. AI servers already drive much of the business: its cloud and networking division, which includes AI servers, made up 51 percent of second-quarter revenue, passing half of total sales for the first time.

Foxconn is also putting robots to work in its own factories. More than 10 humanoid robots have been deployed at its Texas facilities for internal use, and the company plans to extend their use beyond Texas. Its Foxconn Industrial Internet unit introduced two wheeled robot models in October, and it is developing AI models for the robots based on Nvidia’s GR00T foundation model. Foxconn runs six factory buildings in Houston, Texas, where it makes AI servers for Nvidia, and Liu said further expansion would be needed.

Why it matters

The deal would deepen the link between the world’s largest electronics manufacturer and the maker of ChatGPT, at a time when investors are questioning whether the huge sums being poured into AI infrastructure will ever pay off. Foxconn, formally known as Hon Hai Precision Industry, is Nvidia’s biggest AI server maker, so its order book is a useful gauge of whether the AI build-out is still growing.

What happens next

Foxconn and OpenAI are expected to announce the terms of the new collaboration once they are finalised, including what hardware it covers and where it will be built. Watchers will also look for signs of wider robot use in Foxconn’s plants and for any update on its Houston expansion.

This article is for general information and education only. It is not legal or financial advice.

Sources

• https://wabx.net/2026/10/30/foxconn-working-on-a-new-tie-up-with-openai-says-there-is-no-ai-bubble/ (Reuters via WABX, 30 October 2026)
• https://invezz.com/news/2026/10/30/foxconn-dismisses-ai-bubble-fears-with-fresh-openai-partnership-on-cards/ (Invezz, 30 October 2026)