AI tie-up: NVIDIA and iPhone maker Foxconn to build ‘AI plants’
Chip giant NVIDIA and Taiwan's Foxconn, the world's largest contract electronics maker, are teaming up to create AI factories. IGTV's @AngelineOng explains why this partnership is key to NVIDIA and Foxconn’s future.
(VIdeo Transcript)
NVIDIA-Foxconn alliance is big news for AI
Big news in the artificial intelligence (AI) and chip space: NVIDIA and Foxconn are teaming up to build AI factories. Just showing you NVIDIA share price there, because we are watching this as we creep closer to the main session.
However, NVIDIA, as I have reminded our viewers many times, is all-sessions on the IG platform, so you can take a petition now. But we are watching this because this is big news, especially in the AI space, because NVIDIA is synonymous with AI.
You need those chips in order to run all those systems and services, especially when it comes to EVs and autonomous cars. Tesla, of course, uses NVIDIA chips, gaming as well as military related software, or run on some form of chip that is related to the kind of technology that NVIDIA is using.
Foxconn takes a new direction
As for Foxconn, this is also a really interesting space, because Foxconn is trying to come away from becoming a manufacturing supplier. Foxconn is known for putting together many of the world's iPhones that you see out there. It's trying to come away from becoming a manufacturing supplier, being stuck in that rut, to becoming an AI services provider.
This is key because by teaming up with NVIDIA, it does that too. This story may not come as good news to China as well.
As you know, many people who cover this space will look at this and think, it's not going to sit down well with China, because by teaming up with Foxconn and having these AI plants elsewhere, it helps NVIDIA sell and use its chips outside of China, as the US has now banned some chips from being sold in the mainland.
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