Foxconn collaborated with Japan's SoftBank to operate a data center equipment manufacturing facility in Lordstown, Ohio. This effort is part of the Stargate project, a USD 500 billion initiative bringing SoftBank, OpenAI, with Oracle to enhance U.S. AI infrastructure.
The Ohio site, was previously an electric vehicle manufacturing plant, is now acquired by SoftBank for USD 375 million. Foxconn will continue operations at the site through a joint venture with SoftBank. This location is chosen for its strategic advantages in power availability, infrastructure, as well as urgency of timeline.
Through this collaboration Foxconn's will expand its role in the AI sector. The company has reported a 27% year-on-year increase in second-quarter profit, influenced by fueling demand for AI servers. Foxconn anticipates further revenue growth in the third quarter, with AI server revenue projected to rise over 170% year-on-year.
The company will continue functioning at the facility through a partnership with SoftBank, leveraging the site's existing infrastructure to cater to the escalating demand for AI technologies.
This strategy is to broaden national efforts to lead in AI, with capital investment in AI-compatible data centers projected to surpass USD 5 trillion by 2030. The collaboration will also aim the growing emphasis of AI infrastructure in the U.S. economy and highlights the pivotal role of partnerships between global technology leaders in driving innovation and economic growth.