A new phase of the AI arms race began quietly this week – and whether the computer beats you or not, there is no going back. That's what physical courage is behind them: the equipment.
Foxconn and OpenAI said they would cooperate development and production of key infrastructure in the United States for working with artificial intelligence in data centers.
This includes power systems, networking equipment, cooling – all the elements that high-performance AI requires.
As part of the contractFoxconn will work to produce AI racks and related components using its U.S. manufacturing capacity
The somewhat secretive nature of both systems immediately became even more clear when OpenAI agreed to become a development partner offering access to early testing and purchase options when ready.
No obligation to purchase, but potentially a significant bet depending on potential demand.
What's notable – and, frankly, smart – is that it shows that AI progress is no longer just about smarter algorithms.
It's about supply chains, manufacturing capacity, and building physical infrastructure so that AI can actually scale.
(This is also seen in Foxconn's move away from a pure smartphone assembler to a leading AI infrastructure provider).
Already, Foxconn executives say they can produce about 1,000 AI server racks a week – and we intend to increase this number next year.
If they achieve this goalwe can expect a massive acceleration in the rate of new AI centers emerging across the United States and beyond.
It seems to me like this is a big step that goes unnoticed and that no one is shouting about.
Companies have spent years searching for model performance and flashy demos, but what really matters to long-term AI dominance is that the infrastructure behind it can be maintained.
With this partnership, OpenAI and Foxconn appear to be engineering not only the tools but also the plumbing for the entire AI era.
If I were you, I'd keep a close eye on which data center gets built next and where – because wherever those racks are placed, that's where we'll see the next wave of AI-powered services explode.
