Nvidia Collaborates with Foxconn for AI Factory Development
In Brief
The CEOs of Foxconn and Nvidia revealed their collaborative vision for creating innovative 'AI factories'.

The electronics titan from Taiwan Foxconn has announced their strategy to construct data centers that will leverage Nvidia Nvidia's chips and software across a variety of AI initiatives, especially for self-driving cars. During Foxconn's annual tech event in Taipei, Foxconn's Chairman, Liu Young-way, and Nvidia's head, Jensen Huang, presented their plans to work together on these 'AI factories.'
According to Nvidia CEO Huang, these 'AI factories' will consistently collect and process information from autonomous electric vehicles, thereby improving their real-time decision-making capabilities. He emphasized that data will be pivotal to the progression of the forthcoming AI factories.
"A new kind of manufacturing is taking shape – the crafting of intelligence. The data hubs that facilitate this process are what we term AI factories,\" Huang stated. \"Foxconn possesses the necessary expertise and resources to erect AI factories worldwide. We are enhancing our long-standing partnership to propel the AI industrial revolution forward. In the coming years, every sector and company will feature its own AI factories.\"
Utilizing Real-time AI Insights for Autonomous Vehicle Intelligence
Jensen Huang noted that information harvested from autonomous vehicles (AVs) will funnel into the AI factory, enabling the distribution of fresh software updates across the entire fleet. Nvidia highlighted that these AI factories would deploy the powerful GH200 superchip along with other proprietary technologies, with certain exceptions made for the Chinese market due to existing export limitations.
This announcement follows Nvidia's prior statement revealing that new U.S. export restrictions would impact the sale of two of its less powerful high-end AI chips targeted at the Chinese market, in addition to one of its premier gaming chips. In 2023, Nvidia's market value surged beyond $1 trillion, largely credited to the growing implementation of its chips in various AI sectors.
Earlier this year, Foxconn and Nvidia introduced their initiative to co-create platforms for autonomous vehicles. Foxconn will take charge of producing electronic control units (ECUs) tailored for global distribution, utilizing Nvidia's DRIVE Orin chip.
Foxconn's Chairman Liu indicated the company's shift from a mere manufacturing service provider to a solution-driven platform, focusing on promising domains like smart cities and advanced manufacturing, which align perfectly with the applications of AI factories.
"Importantly, Nvidia and Foxconn are collaboratively establishing these factories. Together, we will expedite the industry's transition into the new AI age,\" remarked Young Liu, Foxconn's Chairman and CEO.
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