Foxconn and Nvidia Team Up to Build ‘AI Factories’ 

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks during the Hon Hai Tech Day in Taipei on October 18, 2023. (AFP)
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks during the Hon Hai Tech Day in Taipei on October 18, 2023. (AFP)
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Foxconn and Nvidia Team Up to Build ‘AI Factories’ 

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks during the Hon Hai Tech Day in Taipei on October 18, 2023. (AFP)
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks during the Hon Hai Tech Day in Taipei on October 18, 2023. (AFP)

Taiwan's Foxconn, the world's largest contract electronics maker, will build a new kind of data center using Nvidia chips and software for a range of applications including self-driving cars, the companies said on Wednesday.

Sharing a stage at Foxconn's annual tech showcase in Taipei, Foxconn Chairman Liu Young-way and Nvidia CEO Jensen Huang said their companies would build these "AI factories" together.

"A new type of manufacturing has emerged - the production of intelligence. And the data centers that produce it are AI factories," Huang said, adding that Foxconn had the expertise and scale to build them globally.

Showing a hand-drawn sketch, Huang - sporting his signature black leather jacket - explained how "AI factories" could continuously receive and process data from autonomous electric vehicles to make them smarter.

"This car would of course go through life experience and collect more data. The data would go to the AI factory. The AI factory would improve the software and update the entire AI fleet," said the Taiwan-born Huang. "In the future, every company, every industry, will have AI factories."

Nvidia, the world's most valuable chip company, said in a statement that the AI factories would use its chips and software, including its cutting-edge GH200 superchip that it is barred from selling in China.

The announcement comes after Nvidia on Tuesday said new US export restrictions would also block sales of two less powerful high-end AI chips it created for the Chinese market along with one of its top-of-the-line gaming chips.

Nvidia's shares have tripled in 2023, giving the company a market value of more than $1 trillion, driven by excitement over the central role of the company's chips in AI applications.

Foxconn, the largest supplier of Apple's iPhones, wants to replicate its level of success in assembling personal computers and smartphones as it expands into making electric vehicles for other companies.

In January, Foxconn and Nvidia announced a partnership to develop autonomous vehicle platforms, in which Foxconn would manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip to sell to the global market.

Liu, standing next to Huang, said Foxconn is "trying to convert itself from a manufacturing service company to a platform solution company," citing smart cities and smart manufacturing as other applications for AI factories.

Foxconn on Wednesday unveiled a new electric cargo van called Model N, the sixth prototype in its EV push that has set ambitious goals but has so far only seen limited orders.

Jun Seki, head of Foxconn's EV business, said the company was talking to 14 potential customers, without naming them, and sees India and Japan as promising countries for EV development.

Initially targeting 5% of the global EV market and the equivalent of $33 billion in revenue from manufacturing EVs and components by 2025, Foxconn's aggressive longer-term ambition is to make nearly half the world's EVs.

Foxconn's Tech Day takes place on the birthday of its billionaire founder, Terry Gou, who stepped down as the company's chief in 2019.

He is now running as an independent candidate for Taiwan's president at elections in January and did not appear at the event, unlike last year when he drove on stage in a prototype EV.

Foxconn's shares closed down 0.9% on Wednesday, compared with a 1.2% fall on the broader market.



Video Game Actors Are Voting on a New Contract. Here’s What It Means for AI in Gaming

A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)
A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)
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Video Game Actors Are Voting on a New Contract. Here’s What It Means for AI in Gaming

A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)
A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)

An 11-month strike by video game performers could formally end this week if members ratify a deal that delivers pay raises, control over their likenesses and artificial intelligence protections.

The agreement feels "like diamond amounts of pressure suddenly lifted," said Sarah Elmaleh, a voice actor and chair of the Screen Actors Guild-American Federation of Television and Radio Artists' interactive branch negotiating committee.

Union members have until Wednesday at 5 p.m. Pacific to vote on ratifying the tentative agreement.

Voice and body performers for video games raised concerns that unregulated use of AI could displace them and threaten their artistic autonomy.

"It’s obviously far from resolved," Elmaleh said. "But the idea that that we’re in a zone where we might have concluded this feels like a lightening and a relief."

AI concerns are especially dire in the video game industry, where human performers infuse characters with distinctive movements, shrieks, falls and plot-twisting dialogue.

"I hope and I believe that our members, when they look back on this, will say all of the sacrifices and difficulty we put ourselves through to achieve this agreement will ultimately be worth it because we do have the key elements that we need to feel confident and moving forward in this business," said Duncan Crabtree-Ireland, the SAG-AFTRA national executive director and chief negotiator.

Here’s a look at the contract currently up for vote, and what it means for the future of the video game industry.

How did the current strike play out? Video game performers went on strike last July following nearly two years of failed negotiations with major game studios, as both sides remained split over generative AI regulations.

More than 160 games signed interim agreements accepting AI provisions SAG-AFTRA was seeking, the union said, which allowed some work to continue.

The video game industry is a massive global industry, generating an estimated $187 billion in 2024, according to game market forecaster Newzoo.

"OD," and "Physint" were two games delayed due to the strike during the filming and casting stage, video game developer Hideo Kojima wrote in December. Riot Games, a video game developer, announced that same month that some new skins in "League of Legends" would have to use existing voice-overs, since new content couldn't be recorded by striking actors. Skins are cosmetic items that can change the visual appearance of a player and is sometimes equipped with new voice-overs and unique recorded lines.

The proposed contract "builds on three decades of successful partnership between the interactive entertainment industry and the union" to deliver "historic wage increases" and "industry-leading AI provisions," wrote Audrey Cooling, a spokesperson for the video game producers involved in the deal.

"We look forward to continuing to work with performers to create new and engaging entertainment experiences for billions of players throughout the world," Cooling wrote.

Video game performers had previously gone on strike in October 2016, with a tentative deal reached 11 months later. That strike helped secure a bonus compensation structure for voice actors and performance capture artists. The agreement was ratified with 90% support, with 10% of members voting.

The proposed contract secures an increase in performer compensation of just over 15% upon ratification and an additional 3% increase each year of the three-year contract.

How would AI use change in video games? AI concerns have taken center stage as industries across various sectors attempt to keep up with the fast-evolving technology. It’s a fight that Hollywood writers and actors undertook during the historic film and TV strikes that forced the industry to a stop in 2023.

"In the last few years, it’s become obvious that we are at an inflection point where rules of the road have to be set for AI, and if they aren’t, the consequences are potentially very serious," Crabtree-Ireland said. "I think that really made this negotiation extra important for all of us."

SAG-AFTRA leaders have billed the issues behind the labor dispute — and AI in particular — as an existential crisis for performers. Game voice actors and motion capture artists’ likenesses, they say, could be replicated by AI and used without their consent and without fair compensation.

The proposed contract delineates clear restrictions on when and how video game companies can create digital replicas, which use AI to generate new performances that weren't recorded by an actor.

Employers must obtain written permission from a performer to create a digital replica — consent which must be granted during the performer’s lifetime and is valid after death unless otherwise limited, the contract states. The time spent creating a digital replica will be compensated as the same amount of work time it would have required for a new performance.

The agreement also requires the employer to provide the performer with a usage report that details how the replica was used and calculates the expected compensation.

Elmaleh, who has been voice acting since 2010 and had to turn down projects throughout the strike, said securing these gains required voice actors bring vulnerability and openness to the bargaining table.

"We talked a lot about the personal, the way it affects our displacement as workers and just the sustainability of our careers," Elmaleh said. "Our work involves your inner child. It’s being very vulnerable, it’s being playful."

What’s next for the video game industry? The tentative agreement centers on consent, compensation and transparency, which union leaders say are key elements needed for the industry to keep progressing.

As the contract is considered by union members, Elmaleh and Crabtree-Ireland said further work needs to be done to ensure the provisions are as broad as necessary.

"Even though there’s a deal that’s been made now, and we’ve locked in a lot of really crucial protections and guardrails, the things that we haven’t been able to achieve yet, we’re going to be continuing to fight for them," Crabtree-Ireland said. "Every time these contracts expire is our chance to improve upon them."

Elmaleh said she hopes both the video game companies and performers can soon work collaboratively to develop guidelines on AI as the technology evolves — a process she said should start well the proposed contract would expire in October 2028.

Leading negotiations has felt like a full-time job for Elmaleh, who took on the role in a volunteer capacity. As the efforts die down, she said she anxiously anticipates returning to video game acting in a landscape that is safer for performers.

Voice acting "is core to who I am. It’s why I fought so hard for this. I wouldn’t do this if I didn’t love what I do so much. I think it’s so special and worthy of protection," she said.