[News] Foxconn Chairman Forecasts AI Investment Growth and Confirms Strong Demand for GB200

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In an interview with CNBC, Foxconn’s chairman Young Liu pointed out that as advanced language models keep evolving, the investment in AI boom will continue as well. Liu suggested that the AI boom “still has some time to go,” as advanced language models like OpenAI continue to grow increasingly intelligent with each update.

He stated that the current trend in the technology industry is the development of AI that is as intelligent as humans, or even smarter. This type of AI is referred to as “AGI,” or “artificial general intelligence.”

Citing Liu’s remarks, the report noted that among the discussions about AGI and various levels of intelligence, the intelligence can be categorized into four levels. According to Liu, we are currently at level two, with levels three and four yet to be reached. Liu also noted that the advancement of AI towards greater intelligence will undoubtedly benefit the AI server industry and has been a significant driver of Foxconn’s growth this year.

Regarding the demand for NVIDIA’s new generation Blackwell GPU, Liu remarked that the chip demand was “far beyond our expectations.” He also mentioned that Foxconn is constructing a new factory in Mexico to meet this substantial demand. His comments align with those of NVIDIA CEO Jensen Huang, who has previously characterized the demand for Blackwell as “insane,” according to CNBC.

Despite concerns about potential yield issues with NVIDIA’s GB200, the company remains on schedule to deliver the chips by the fourth quarter of 2024, according to Liu. Foxconn, a key contract manufacturer for the GB200, expects substantial growth fueled by strong demand for AI servers.

Furthermore, Liu suggested that generative AI-related devices will be the next growth area, noting that the company is currently witnessing this trend in the cloud, where demand for generative AI cloud devices is exceptionally strong. In the next phase, the market will see further development of generative AI devices, according to Liu.

(Photo credit: Foxconn)