Foxconn and Nvidia Join Forces to Create ‘AI Factories’ Revolutionizing Data Centers

Taiwan’s global tech giant, Foxconn, and leading chip manufacturer Nvidia, have announced a groundbreaking collaboration to construct innovative “AI factories.” These cutting-edge facilities will employ Nvidia’s state-of-the-art chips and software, revolutionizing data centers and enabling a range of applications, notably in self-driving cars. This partnership signifies a remarkable leap forward in the field of artificial intelligence and data processing.

The Birth of AI Factories:

At Foxconn’s annual tech showcase in Taipei, Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang stood side by side to introduce their vision of “AI factories.” Huang elucidated that these factories symbolize a new era in manufacturing – one that produces intelligence. These AI factories, as he described them, are data centers that have the capacity to create intelligence on a grand scale.

Huang illustrated the concept with a hand-drawn sketch, emphasizing how these AI factories could continuously collect and process data from autonomous electric vehicles, using this information to make the vehicles smarter over time. He noted that “In the future, every company, every industry, will have AI factories.”

Nvidia’s Role in AI Factories:

Nvidia, recognized as the world’s most valuable chip company, has a pivotal role in bringing these AI factories to life. These facilities will leverage Nvidia’s chips and software, including its cutting-edge GH200 superchip, a technology that is restricted from being sold in China. The partnership between Foxconn and Nvidia underscores the transformative potential of this technology and the central role that AI factories could play in various industries.

Export Restrictions and New Directions:

It’s important to note that Nvidia recently faced new U.S. export restrictions, which affected its sales in China. These restrictions now extend to high-end AI chips intended for the Chinese market. However, despite these challenges, Nvidia’s shares have seen significant growth, with the company’s market value surpassing $1 trillion, largely driven by its pivotal role in AI applications.

Foxconn’s Ambitious Transformation:

Foxconn, known as the largest supplier of Apple’s iPhones, has set its sights on replicating its past successes in manufacturing personal computers and smartphones as it expands into electric vehicle production for other companies. This shift was initiated in January when Foxconn and Nvidia unveiled a partnership to develop autonomous vehicle platforms, aimed at manufacturing electronic control units for cars based on Nvidia’s DRIVE Orin chip for global markets.

Foxconn’s ambitious goals include capturing 5% of the global EV market by 2025, translating to approximately $33 billion in revenue from EV manufacturing and components. Looking further ahead, Foxconn envisions a future where it produces nearly half of the world’s electric vehicles.