Nvidia Partners with Foxconn to Build AI Data Factories

On Tuesday, Nvidia announced its collaboration with Hon Hai Technology Group (Foxconn) to construct artificial intelligence (AI) data factories.

The world’s largest contract manufacturer will integrate Nvidia technology to develop the next generation of data centers. Constructing AI factories will be the first step in the long-term project of the two global goliaths.

An AI factory pertains to a computing infrastructure powered by Nvidia’s graphics processing units (GPUs), specially designed for processing vast amounts of data. After processing, the accelerated computing platform refines and transforms the data into valuable AI models and tokens.

AI models and tokens have varied applications, such as being foundations for large language models (LLMs) for generative AI (GenAI). They can also be used to develop AI-powered electric vehicles (EVs), robotics platforms, and manufacturing and workflow digitalization.

Nvidia founder and CEO Jensen Huang described AI factories as producers of intelligence, a new type of manufacturing. Huang stressed confidence that the partnership will accelerate the AI industrial revolution and usher in a new AI era.

Moreover, Foxconn Chairman and CEO Young Liu mentioned that leveraging Nvidia tech will supplement the company’s smart solution platforms. Liu added that the contract manufacturer’s top priorities are its Smart Manufacturing, Smart City, and Smart EV AI solutions.

Foxconn and Nvidia to Develop Next-Gen EVs

Analysts and stakeholders are optimistic about the Nvidia-Foxconn collaboration, especially on the EV front.

Foxconn plans to manufacture the highest-performing EV systems at least a level above the DRIVE Orin-powered electronic control units (ECUs). DRIVE Orin is already considered the world’s most advanced AI car computer, used by over 25 global automakers.

DRIVE Thor, Nvidia’s upcoming superchip, will outperform DRIVE Orin in all aspects. It will facilitate safe and secure intelligence driving through 2,000 teraflops of high-performance computing power.

Furthermore, the DRIVE Hyperion 9, the first to be powered by DRIVE Thor, will come with unmatched heightened senses. It will use a sensor system comprising a redundant array of high-resolution cameras, radars, lidars, and ultrasonic sensors.

Foxconn also believes adopting DRIVE Hyperion will hasten development and cut costs for any electronics manufacturer. Additionally, Liu emphasized that DRIVE Thor will be essential in the shift to software-defined vehicles with a centralized electronic architecture.