Here are the goals of Nvidia and Foxconn with “AI factories”
Nvidia and Foxconn team up on the construction of "AI factories", i.e. data centers dedicated to artificial intelligence. Nvidia insists on a technology that is profitable for it; for Foxconn, however, it is an opportunity to transform
The American NVIDIA, the largest microchip company in the world, and the Taiwanese Foxconn, the largest contract manufacturer of electronic components, will together build a new type of data center dubbed AI factories , designed precisely to artificial intelligence solutions such as autonomous driving.
WHAT ARE “AI FACTORIES”
NVIDIA CEO Jensen Huang, a Taiwanese native, said that “a new type of manufacturing has emerged: intelligence manufacturing. And the data centers that produce it are AI factories.” NVIDIA will provide the software and chips (including the highly advanced GH200), while Foxconn will provide the technical capacity and economy of scale needed to build these facilities around the world. Huang added that “AI factories” will be able to continuously receive and process data from autonomous and electric vehicles to improve their performance and make them even smarter .
As explained by the head of NVIDIA, the data collected by autonomous cars will be sent to an AI factory which, through their processing, would improve the on-board software and update the entire circulating fleet. “In the future, every company and every industry will have AI factories.”
THE NEW AMERICAN RESTRICTIONS ON NVIDIA
The announcement of the two companies comes a few days after the US government's new restrictions on exports to China even on NVIDIA's less sophisticated microchips ; microchips which, moreover, the company had developed specifically for the Chinese market, "weakening" some of its advanced products already subject to commercial limitations.
ALL FOXCONN GOALS
In 2023, NVIDIA shares tripled in value, allowing the company to reach a valuation of more than $1 trillion, thanks to the market's enthusiasm for its artificial intelligence microchips. Foxconn, on the other hand, wants to replicate its successes in assembling computers and smartphones – it is the largest assembler of iPhones for Apple – in the production of electric vehicles for third-party companies.
President Liu Young-way said it clearly: Foxconn wants to evolve from a manufacturing company to a platform provider. A few days ago it revealed an electric van, the Model N, its sixth electric vehicle model. Orders have been limited so far, but Foxconn appears to see business opportunities in India and Japan. The ambitions, however, are enormous: in the long term, the company aims to build almost half of global electric vehicles.
THE NVIDIA-FOXCONN PARTNERSHIP ON AUTONOMOUS VEHICLES
As Reuters recalls, in January NVIDIA and Foxconn announced a partnership for the development of autonomous vehicles: NVIDIA would use its DRIVE Orin chip, from which Foxconn would create electronic control units for cars.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/nvidia-foxconn-fabbriche-intelligenza-artificiale/ on Fri, 20 Oct 2023 10:13:29 +0000.