Nvidia, the world’s most valuable chip company, and Foxconn, the iPhone manufacturer, are joining forces to create groundbreaking “AI factories.” These innovative data centers, powered by Nvidia chips, aim to fuel a broad spectrum of applications, ranging from training autonomous vehicles to driving advancements in robotics platforms and large language models.
This collaboration comes at a critical juncture, with the U.S. unveiling plans to restrict more advanced chip exports to China, dealing a blow to Nvidia. The newly announced export limitations target two high-end artificial intelligence chips, the A800 and H800, created by Nvidia for the Chinese market.
Nvidia’s CEO, Jensen Huang, and Foxconn’s Chairman, Young Liu, took the stage together at Foxconn’s annual tech showcase in Taipei. Huang highlighted the emergence of a new era in manufacturing, emphasizing the role of AI factories in producing intelligence. He expressed confidence in Foxconn’s capability to construct these globally.
Chairman Liu sees this collaboration as a strategic move for Foxconn’s transformation from a manufacturing service company to a platform solution company. He envisions AI factories contributing to smart cities and smart manufacturing, expanding Foxconn’s horizons.
The partnership builds on the success of Nvidia’s advanced chips in AI applications, propelling its stock market value to over $1 trillion. This achievement places Nvidia in the elite “Trillion Dollar Club,” alongside tech giants like Apple, Microsoft, Alphabet, and Amazon.
In a bid to diversify, Foxconn, renowned for producing more than half of the world’s Apple products, has been eyeing growth in electric vehicles. Chairman Liu, in an exclusive interview in June, emphasized electric vehicles as a key driver for the company’s future growth.
This collaboration marks another chapter in the Foxconn-Nvidia partnership, following their joint efforts to develop autonomous vehicle platforms earlier this year. As these tech titans forge ahead, the world watches the evolution of AI factories and their transformative impact on technology and manufacturing.”