Foxconn to Operate SoftBank's Stargate AI Server Site in Ohio
Foxconn, formally Hon Hai Precision Industry Co., is set to take the operational helm of a new AI server factory in Ohio, a pivotal development for SoftBank Group Corp.’s ambitious $500 billion “Stargate” venture. This strategic move positions the Ohio facility as a potential cornerstone for the massive AI infrastructure project, which includes collaborations with OpenAI and Oracle Corp.
The arrangement involves SoftBank acquiring Foxconn’s existing electric vehicle (EV) manufacturing plant in Ohio. However, rather than a complete handover, Foxconn will continue to manage and operate the complex, repurposing it entirely for the production of advanced AI servers. This was confirmed by Foxconn Chairman Young Liu, validating earlier reports by Bloomberg News.
Liu further detailed the collaborative structure, explaining that SoftBank will be responsible for supplying the necessary manufacturing equipment for the transformed facility. Crucially, the partnership extends beyond mere server assembly: a joint venture between Foxconn and SoftBank will be established to produce a broader range of equipment essential for AI data centers. This signifies a deeper, long-term commitment to building the foundational hardware required to power the next generation of artificial intelligence.
This strategic alliance underscores the escalating global race for computational power, a critical bottleneck in the advancement of AI. By converting an existing automotive manufacturing site, both companies demonstrate an agile and adaptive approach to leveraging industrial assets for the burgeoning demands of high-performance AI infrastructure. The collaboration marries Foxconn’s extensive manufacturing prowess and supply chain expertise with SoftBank’s visionary investment in AI and its strategic partnerships with leading AI developers like OpenAI and cloud providers such as Oracle, potentially accelerating the deployment of the vast computing resources needed for future AI innovation.