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The chip designer company Nvidia has stated that it will build up to $500 billion USD worth of AI infrastructure in America over the next four years. This is likely a response to Trumpβs expensive tariffs.
Nvidia has pledged up to $500 billion USD worth of AI infrastructure in America across the next four years. It is evidence to suggest that manufacturers may begin to invest in operations locally as a result of Trumpβs tariffs.
Trump repeated threats on Sunday to impose tariffs on the semiconductors that Nvidia produces largely in Taiwan. The company creates chips that are instrumental in the development of AI products, and is seemingly shifting gears to focus more on US production.
Nvidia states that it will work with manufacturing partners to design and build factories where βsupercomputersβ can be built entirely within the US.
It has already claimed to be producing its popular Blackwell graphics processing unit at TSCMβCβs plant in Pheonix, Arizona, with new plants being constructed in Houston and Dallas. Mass production is predicted to scale up within the next year and a half.
Nvidiaβs chief executive, Jensen Haung, said that American manufacturing helped the company βbetter meet the incredible and growing demand for AI chips and supercomputers.β
The company has enjoyed huge benefits as a result of the global explosion in AI. Since 2020, Nvidiaβs shares have risen by more than 1000%, though it has felt a 20% shrinkage this year due to complications surrounding Trumpβs tariffs.
This new announcement is no doubt an attempt to course correct.
While ChatGPT, DALL-E and other AI services are immensely popular, there has been some disruption to the industryβs Western dominance, most notably with Chinaβs DeepSeek. Released in February, the app claimed to offer similar results to established AI platforms at the fraction of the cost.
The entire fiasco cost $600 billion USD in market value losses.
