Announcement
Foxconn, officially Hon Hai Precision Industry (TW:2317), has secured its first artificial‑intelligence server manufacturing contract from SpaceX, the aerospace venture founded by Elon Musk. The Economic Daily estimates the contract’s total value at approximately $52 billion.
Contract Details
SpaceX plans to deploy more than 13,000 AI server racks that will be powered by Nvidia’s GB300 chips. The newspaper calculates an average cost of about $4 million per rack, which aligns with the $52 billion valuation. Deliveries are scheduled to begin in late 2026 and are expected to continue through the first quarter of 2027.
Market Impact
The award marks a shift in SpaceX’s supplier landscape, ending the prior dominance of Dell Technologies and Super Micro Computer in providing AI servers to the company. By winning the order, Foxconn gains a complete roster of major North American cloud and AI‑infrastructure customers.
Company Outlook
Foxconn’s chairman, Liu Yangwei, has previously indicated that demand for the firm’s AI server business remains strong. He now forecasts that Foxconn will command over 40 % of the AI server market this year, with AI rack shipments expected to double and grow sequentially through year‑end. The company notes that cloud and networking products, led by AI servers, already constitute its largest business segment.
Broader AI Computing Expansion
According to the report, SpaceX is expanding its AI computing infrastructure to support cloud‑computing services. Recent agreements include collaborations with Anthropic and Google, and the company is also pursuing AI computing projects with the U.S. Department of Defense.