Nvidia and Foxconn to build AI factories
Chip makers Nvidia and electronics maker Foxconn plan to team up to set up artificial intelligence (AI) factories.
In the year By 2023, the world will witness how AI will revolutionize software. While AI products launched this year are mainly limited to chatbots, image generators and other software, the technology can build powerful physical devices such as robots and AI-powered vehicles.
What will Nvidia-Foxconn AI factories focus on?
According to the Financial Times, Foxconn will use NVIDIA chips to build “a new class of data centers that can host a variety of applications.” The companies call these data centers “AI factories.”
At Foxconn's annual tech day, Navid CEO Jensen Huang announced that AI factories will train autonomous vehicles, robotic platforms and large-scale language models (LLMs).
Read more: Will AI replace humans?
The development comes as Foxconn, a company known mainly for producing electronic devices, is trying to expand its business. Foxconn now wants to focus on building the computing infrastructure that powers autonomous technology.
Meanwhile, the decision by the US to limit the export of semiconductor chips to China could negatively affect Nvidia's earnings. The US introduced the new ban amid fears that China is building advanced chips to bolster its military capabilities and weapons of mass destruction.
On the other hand, the US Pentagon plans to use generative AI for military purposes.
However, following this development, Nvidia's stock price is down 7.81% since Monday's close. Despite the downturn, Nvidia's market capitalization remains above $1 trillion. Earlier this year, it became the first chipmaker to hit a $1 trillion valuation.
Read More: AI Stocks: The Best Artificial Intelligence Companies to Watch in 2023
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