According to the latest sources, we now know that the world’s largest contract electronics manufacturer, Foxconn, and well-known graphics chip maker, Nvidia, have partnered to create “AI factories.”
They didn’t confirm the specifics of this endeavor, but as the name suggests, we’re talking about a generation of factories where the end result will lead to the production of intelligence, as said by Jensen Huang, the CEO of Nvidia.
According to Reuters, Foxconn will use Nvidia chips and software to construct a new sort of data center. Autonomous driving vehicles will be one of the uses provided.
Nvidia’s CEO mentioned that these AI factories would constantly receive and study data from electric vehicles to continue the process of learning, eventually making them more suitable for transportation purposes.
This process of smarter learning will work through automated data collection. Once the collected data is received at the AI factory, it will improve the date and send an update for every vehicle.
This announcement was made after the US tightened its technology export blacklist to China. Due to the restrictions, NVIDIA will not be able to send its H800 graphics to China, specially designed to bypass the first US veto.
Such focus on AI and the future of technology has allowed Nvidia to become the leader in this industry, shipping 1.2 million H100 GPUs in 2023 alone. The AI segment is also expected to bring in $300 billion for the company by 2027.
This partnership is part of a much bigger goal for Foxconn, which hopes to transition to a platform solution company as opposed to its current position as a manufacturer.
Both companies had already joined forces as early as January 2023, and their latest announcement ensures that they are steadily working toward a mutually beneficial goal.
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