Nvidia and Foxconn collaborate to create "AI factories"

On Wednesday, Foxconn will use Nvidia chips and software to build a new type of data center that will be used for various applications, such as self-driving cars.

At the annual tech showcase held by Foxconn in Taipei, Jensen Huang, CEO of Nvidia, and Liu Young-way, Chairman of Foxconn, announced that their companies would collaborate to construct these "AI factories".

Huang claimed that the creation of intelligence represents a new form of manufacturing. AI factories are the data centers that generate it. Foxconn, he continued, had the know-how and resources to create them all over the world.

Presenting a pen and paper drawing, Huang—wearing his trademark black leather jacket—elucidated how "AI factories" could continuously gather and analyze data from self-driving electric cars to enhance their intelligence.

Of course, this car would experience life and gather more data. The AI factory would receive the data. The Taiwan-born Huang stated, "The AI factory would update the entire AI fleet and improve the software." "In the future, every company, every industry, will have AI factories."

The most valuable chip company in the world, Nvidia, said in a statement that its cutting-edge GH200 superchip—which it is not allowed to sell in China—as well as its software will be used in the AI factories.

The announcement follows Nvidia's Tuesday statement that, in addition to one of its top-tier gaming chips, sales of two of its less potent high-end AI chips designed for the Chinese market would also be prohibited by new U.S. export restrictions.