This paper presents an OBE (outcome-based education) oriented teaching design reform of the undergraduate course entiled Fundamentals of Artificial Intelligence, which is typically offered to students majoring in automation, computer science, electronic engineering, and related interdisciplinary programs. Departing from the traditional textbook-driven, teacher-centered delivery model, the reform is structured around four core OBE links: (i) reverse design of course objectives mapped to graduation requirement indicators; (ii) modular reconstruction of teaching content covering AI foundations, machine learning, natural language processing, computer vision, and AI ethics integrated with contextualized projects; (iii) project-based and inquiry-driven instructional activities; and (iv) diversified formative assessment with a course-objective–assessment mapping matrix. The findings suggest that OBE-based reverse design, modular content organization, and process-oriented assessment effectively promote students’ algorithmic comprehension, practical problem-solving ability, and learning engagement in AI foundational education.