Foxconn Chairman says AI Investment to Continue Growing as Language Models Advance

Foxconn Chairman

Foxconn Chairman and CEO Young Liu said the corporate investment in AI was now going to upsurge more with that particular plunge by the large language models. Speaking on a CNBC interview, Liu said there is much room for growth as large advancements are still to be done on the AI technology with companies, especially OpenAI, but he still posits that a lot of work yet has to be made to reach the top-level AI known as Artificial General Intelligence (AGI).

Liu said the tech world is working toward developing AI systems that are potentially more intelligent than humans. He segmented the degree of intelligence into four categories, saying the industry has already achieved level two but much is yet to come. “We hear of AGI, and we talk about different levels of intelligence but there’s still level three and level four to go,” Liu said.

OpenAI heads the AGI movement and its CEO, Sam Altman, has even mentioned that this AI might arrive in the near future. Altman has even warned that jobs may not disappear faster than popularly thought in the event of AGI. After unveiling its upgraded version, GPT-4o, OpenAI managed to raise $6.6 billion, and its valuation reached at $157 billion with the work going on in GPT 5.

According to Liu, the boom in AI is a great boon for the AI server business, which has significantly contributed to Foxconn’s growth this year. “The development of AGI will further increase demand for AI servers-a sector where we have seen growing interest not only from the majors such as Amazon, Google, and Microsoft but also from many others,” he said.

Foxconn recently said sales in its September quarter set a company record with revenues of 1.85 trillion Taiwanese dollars, or about $57.5 billion, year-over-year growth of 20.2%. While AI servers are one part of the success story, more specifically the rise came from demand for AI servers that work based on Nvidia’s next-generation Blackwell GPU that is expected to ship late in 2024.

Liu further highlighted “on-device” AI as the next great growth opportunity for Foxconn. He mentioned that generative AI devices will also be a good driver of the next phase of expansion because companies like Apple will integrate more advanced AI features into their products. In this regard, Foxconn is already in the manufacturing of the new iPhone 16 that comes with such technological innovations.

However, as smartphone sales are now picking up, with shipments rising 6.5% year over year in the second quarter of 2024, Liu is hopeful for the chances of AI-integrated devices. Without any word so far on Apple Intelligence, the AI system to be made officially available this autumn, a program that the company has managed to keep under wraps this past period, growth is likely to flourish in the smartphone market.

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