Foxconn's big AI play could power Apple's next big thing

It starts with servers, but where does it lead? Apple's trusted assembler is making moves in AI infrastructure — and the ripple effects could be massive.

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Foxconn's big AI play could power Apple's next big thing
If you've not been living under a rock in the past couple of years, you obviously know that AI is now the big industry trend. Now, Apple's biggest assembler, Foxconn, is also betting big on AI, teaming up with TECO for an all-in-one solution for next-gen data centers.

There's currently a race in the tech industry on who is going to build the proper infrastructure needed to support the growing needs of artificial intelligence. 

Foxconn is now reportedly buying a 10% stake in TECO Electric & Machinery. This action is part of its recent efforts in data center infrastructure. Thus would also be another step in Foxconn's move beyond consumer electronics.

Foxconn is mainly known to be the firm (based in Taiwan) that assembles Apple's iPhones. Apparently, now, Focxonn is aiming to also get a dominant position in the world of generative AI. The company seems to be betting on infrastructure that would support AI. 

Meanwhile, TECO was originally a car engine maker. It's also expanded into EVs, energy storage, and even data center construction. Foxconn, on the other hand, is also manufacturing server racks designed for AI workloads, in a collaboration with Nvidia. 

Will Foxconn play a key role in Apple's AI future?


Apple is very likely to also benefit from this deal. The Cupertino tech giant has very ambitious plans for generative AI in the future, and that would require an expanded server infrastructure globally to support all these demanding AI tasks. Possibly, Foxconn may get involved with this, given the ties between the two companies. 

Towards the end of last year, Apple was rumored to be looking to build its own servers to handle AI tasks. And indeed, Foxconn is one of the partners that can help make this happen. Hopefully, this deal can help Apple give us the promised Apple Intelligence features that we're yet to see (hello, there, context-aware Siri). 

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