Foxconn working on a new tie-up with OpenAI, says there is no AI bubble

India imposed restrictions on Chinese investments, banned hundreds of popular Chinese apps and cut air passenger routes between the two countries. (Image: Reuters)

Foxconn, the world’s biggest contract electronics manufacturer, on Friday flagged that a collaboration with leading US artificial intelligence developer OpenAI was in the works, though details were scant.

Foxconn Chairman Young Liu ⁠told ​reporters at the company’s annual event to showcase its technology that he had met OpenAI Chief Executive Sam Altman earlier in the day ​and ​there would be an announcement once ⁠details were confirmed.

Liu did not elaborate further. Any 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 and Nvidia’s biggest AI server maker, is increasingly relying ⁠on AI ⁠infrastructure for growth.

While AI-sector stocks have been hit hard by concerns that relentless ⁠heavy ‌investment is not sustainable ​amid climbing borrowing costs, Liu said ‌the industry was not in a bubble and 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, and sees a need for further ⁠expansion, Liu said.

The company said in August that its cloud and networking products segment, which ‌includes ⁠AI servers, accounted for 51% of second-quarter revenue, exceeding 50% for the ​first time.