Nvidia Supplier Foxconn Goes All-In On AI With $1.37 Billion Supercomputing Investment

Nvidia (NASDAQ:NVDA) supplier Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd (OTC:HNHAF), has announced a significant investment in artificial intelligence (AI) and supercomputing infrastructure.

Entirely Self-Funded AI Compute Plan

Foxconn's board has approved up to NT$42 billion (around $1.37 billion) to build an AI compute cluster and a supercomputing center.

The investment, to be funded entirely from the company's own resources, will take place between December 2025 and December 2026, according to a filing released late Monday, Reuters reported.

Foxconn said the investment is intended to grow its cloud computing platform and speed up development of its three smart platforms. The company did not share additional details or clarify where the investment will be allocated.

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Strategic Shift From iPhones to AI

Earlier in the year, Foxconn unveiled its in-house large language model with reasoning capabilities, dubbed FoxBrain, using Nvidia tech, which was trained in just four weeks. FoxBrain is built on the architecture of Meta Platforms Inc.'s (NASDAQ:META) publicly available Llama 3.1 large language model.

These strategic shifts have paid off, with the Taiwanese firm’s profit soaring 27% to $1.47 billion in the second quarter of 2025, driven by explosive demand for AI servers and sustained iPhone production for Apple Inc. (NASDAQ:AAPL). The company’s second-quarter revenue also saw a 16% increase from the prior year period, reaching TWD 1.79 trillion ($59.6 billion).

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.