Nvidia and Foxconn team up to build AI factories powered by Nvidia’s advanced chips

Mukund Kapoor
By Mukund Kapoor - Author 3 Min Read
3 Min Read

Chipmaking giants collaborate on data centers to produce AI models and technologies

In Short
  • Nvidia and Foxconn collaborating to construct AI factories powered by Nvidia's chips
  • Factories will train AI models for autonomous cars, robots, natural language processing
  • Nvidia stock up 3X in 2023, hitting $1 trillion market cap as AI chip leader

October 19, 2023: Nvidia, the world’s most valuable chip company, has announced a partnership with Foxconn, the manufacturer of Apple’s iPhones, to construct new “AI factories” – data centers that will utilize Nvidia’s cutting-edge chips to enable a wide range of artificial intelligence applications.

The announcement was made jointly by Nvidia CEO Jensen Huang and Foxconn chairman Young Liu during Foxconn’s annual tech showcase event in Taipei.

Foxconn Chairman Liu Young-way and Nvidia Corp CEO Jensen Huang
Foxconn Chairman Liu Young-way and Nvidia Corp CEO Jensen Huang speak during Foxconn’s annual Tech Day in Taipei, Taiwan, October 18, 2023. REUTERS/Ann Wang

“A new type of manufacturing has emerged – the production of intelligence and the data centers that produce it are AI factories,” said Huang, according to Reuters.

The AI factories will harness the power of Nvidia’s advanced chips to train autonomous vehicles, develop robotics platforms, and run large language models.

Huang touted Foxconn’s expertise and global scale to build these AI factories internationally.

Liu stated that Foxconn aims to “convert itself from a manufacturing service company to a platform solution company,” citing smart cities and smart manufacturing as other use cases for the AI factories beyond autonomous vehicles.

The partnership comes on the heels of new export restrictions announced by Washington that will block Nvidia’s sales of two high-end AI chips – the A800 and H800 – specifically designed for the Chinese market.

However, Nvidia and Foxconn are forging ahead with their collaboration, citing surging demand for AI computing capabilities.

Thanks to its chips powering leading-edge AI applications, Nvidia’s stock market value has ballooned to over $1 trillion this year, making it the fifth publicly traded U.S. company to join the “Trillion Dollar Club” along with Apple, Microsoft, Alphabet, and Amazon.

Nvidia’s share price has more than tripled in 2023. Meanwhile, Foxconn has been working to diversify its business beyond electronics manufacturing and replicate its success with assembling smartphones and PCs in new areas like electric vehicles.

In January, Foxconn and Nvidia had already announced a partnership to develop autonomous vehicle platforms, with Foxconn manufacturing electronic control units using Nvidia’s AI chips.

The new AI factories will represent a deepening of this relationship as Foxconn transitions to becoming a platform solutions provider.

Nvidia’s powerful data center chips will enable Foxconn to move into developing AI-based solutions for manufacturing, healthcare, robotics, and urban infrastructure.


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By Mukund Kapoor Author
Mukund Kapoor, the enthusiastic author and creator of GreatAIPrompts, is driven by his passion for all things AI. With a special knack for simplifying complex AI concepts, he's committed to helping readers of all levels - be it beginners or experts - navigate the intriguing world of artificial intelligence. Through GreatAIPrompts, Mukund ensures that readers always have access to the most recent and relevant AI news, tools, and insights. His dedication to quality, accuracy, and clarity is what sets his blog apart, making it a reliable go-to source for anyone interested in unlocking the potential of AI. For more information visit Author Bio.
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