Foxconn CEO: AI Investment Boom Still Has Room to Grow as Language Models Evolve
The CEO of Foxconn, a leading supplier for Apple, has shared insights on the ongoing boom in corporate investment in artificial intelligence (AI) infrastructure. Young Liu, the Chief Executive and Chairman of Foxconn, emphasized that as large language models (LLMs) continue to evolve, the investment landscape has significant potential for growth.
The Evolving Landscape of AI
In a recent interview with CNBC’s Emily Tan, Liu stated that the AI boom “still has some time to go.” He noted that advanced language models, particularly those developed by OpenAI, are becoming increasingly intelligent with each new iteration. Liu highlighted the tech industry’s shift toward developing a form of AI known as Artificial General Intelligence (AGI)—AI that could match or exceed human intelligence.
“We … heard about AGI, and we’ll talk about different levels of intelligence. If you divide [intelligence] into four different levels, we’re at level two. There’s still level three and level four to go,” Liu explained during the interview.
OpenAI’s Role in Advancing AI
OpenAI, a frontrunner in the push for AGI, has made significant strides in AI technology. Sam Altman, CEO of the Microsoft-backed startup, has expressed optimism that AGI will be developed in the “reasonably close-ish future.” However, he also believes that its impact on job markets might be less drastic than commonly assumed.
The company recently released its upgraded GPT-4o model and raised $6.6 billion at a valuation of $157 billion. Although OpenAI is working toward the release of its next-generation model, GPT-5, no official launch date has been announced yet.
Growth in the AI Server Industry
Liu pointed out that advancements in intelligent AI will benefit the AI server industry, which has already contributed significantly to Foxconn’s growth this year. He remarked, “For the AI server industry, I think we still have some time to grow.” This growth is tied to the increasing capabilities of AGI and the expanding demand for AI devices.
Recently, Foxconn reported better-than-expected sales figures, with revenues reaching 1.85 trillion Taiwanese dollars (approximately $57.5 billion) in the September quarter—up 20.2% year-over-year. This performance was largely driven by heightened demand for AI servers manufactured by Foxconn for major tech companies such as Amazon, Google, Microsoft, and Nvidia.
Demand for Nvidia’s Blackwell GPU
Foxconn is set to ship servers based on Nvidia’s next-generation Blackwell GPU, an advanced AI superchip, in the fourth quarter of 2024. Liu noted that demand for Blackwell is “much better than we thought,” leading the company to build new factories in Mexico to accommodate this demand. Nvidia CEO Jensen Huang echoed this sentiment, stating that demand for Blackwell is “insane.”
Expected to cost between $30,000 and $40,000 per unit, the Blackwell GPU is highly sought after by companies like OpenAI, Microsoft, and Meta, as they develop AI data centers to power applications like ChatGPT and Copilot.
The Future of AI Devices
Beyond its role in cloud-based AI infrastructure, Foxconn is also contributing to the development of the new iPhone 16, which features the latest generative AI capabilities. Liu indicated that “on-device” AI—where data is processed directly on a mobile device rather than through the cloud—represents a significant growth opportunity for the company.
“I think the genAI-related device will be the next way to grow,” Liu stated. He highlighted the current boom in generative AI cloud equipment but anticipates a shift toward Gen AI devices in the next phase, expressing high hopes for their potential.
A New Era for Smartphones
As smartphone manufacturers explore the potential of AI, many are banking on a new growth phase known as a “supercycle.” This comes after years of decline in smartphone sales, with several major companies, including Apple, Samsung, Google, and Huawei, launching AI-integrated devices.
Smartphone shipments are showing signs of recovery, climbing 6.5% year-over-year to 285.4 million units in the second quarter of 2024. This growth marks the fourth consecutive quarter of increases, fueled by innovative AI features in the latest smartphone models.
Conclusion
The AI investment landscape, as highlighted by Foxconn’s Liu, is poised for continued growth as language models and technologies evolve. With emerging AI capabilities and increasing demand for innovative devices, the future of AI in both infrastructure and consumer technology looks promising.
Thank you for reading. We hope this gives you a good understanding. Explore our Technology News blogs for more news related to the Technology front. AdvanceDataScience.Com has the latest in what matters in technology daily.
