Taiwan’s Foxconn, the world’s leading contract manufacturer, has announced a collaboration with Nvidia to construct artificial intelligence data factories. These factories will utilize Nvidia’s chips and software to develop products such as self-driving cars.
The announcement was made during Foxconn’s annual Tech Day in Taipei, where Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang shared the stage. Huang introduced a conceptual representation of their joint venture, describing it as an “AI factory.” He elaborated that this factory would process data to produce intelligence. Huang envisions a future where every sector will have such AI factories.
The primary focus of this partnership is to create a comprehensive AI system for autonomous electric vehicles. The AI factory will be responsible for developing the software for these vehicles. As these cars accumulate experience and data, this information will be returned to the AI factory. The factory will then refine the software and distribute updates to the entire fleet of AI vehicles.
Nvidia has witnessed significant growth this year, with its shares tripling and its market valuation surpassing $1 trillion. This surge is attributed to the pivotal role of Nvidia’s chips in AI applications. On the other hand, Foxconn, known for being Apple’s primary iPhone supplier, is keen on mirroring its success from the personal computer and smartphone sectors as it ventures into electric vehicles and other areas.
While standing alongside Huang, Chairman Liu emphasized Foxconn’s ambition to transition from a manufacturing service entity to a platform solution provider. He highlighted the potential of AI factories in powering intelligent cities and smart manufacturing. Liu expressed confidence in the capabilities of AI factories, stating, “Now I know what can power and what can make these smart platforms happen.”