Apple to open AI server factory in Texas as part of $500 billion U.S. investment

Apple to open AI server factory in Texas as part of 0 billion U.S. investment


Tim Cook, chief executive officer of Apple Inc., greets customers during the first day of in-store sales of Apple’s latest products at Apple’s Fifth Avenue store in New York, US, on Friday, Sept. 20, 2024. 

Victor J. Blue | Bloomberg | Getty Images

Apple plans to open a new factory for artificial intelligence servers in Texas as part of a $500 billion investment in the U.S., the company said Monday.

The U.S. technology giant said it would work with partners to launch a 250,000-square-foot server manufacturing facility in Houston to produce servers for Apple Intelligence, its AI personal assistant for iPhone, iPad and Mac computers.

The new factory, which is slated to begin operations in 2026, will form part of a major investment plan Apple is committing to over the next four years. In addition to the new Texas facility, Apple said it also plans to hire around 20,000 new employees across the U.S.

Most of the new hires will be focused on research and development, or R&D, silicon engineering, software development, and AI and machine learning, Apple said.

“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” Apple CEO Tim Cook said in a statement Monday.

The move comes after Apple’s chief executive met with President Donald Trump last week.

The iPhone maker faces pressure from the Trump administration over where it chooses to manufacture its products. Apple assembles most of its products in China.

Earlier this month, Trump signed an order imposing long-threatened 10% tariffs on Chinese goods on top of existing tariffs of up to 25% levied during his first presidency.

Apple said its $500 billion investment plan will include work with suppliers across the U.S. and production of content for its Apple TV+ media streaming service in 20 states, as well as new hires and research and development spending.

Apple said it “remains one of the largest U.S. taxpayers, having paid more than $75 billion in U.S. taxes over the past five years, including $19 billion in 2024 alone.”

The tech giant also said it would double its U.S. Advanced Manufacturing Fund to $10 billion from $5 billion currently, create a new manufacturing academy in Michigan, and grow its R&D investments in the U.S. to support cutting-edge fields such as silicon engineering.



Source

Trump’s AI order may be ‘illegal,’ Democrats and consumer advocacy groups claim
Technology

Trump’s AI order may be ‘illegal,’ Democrats and consumer advocacy groups claim

President Donald Trump and his tech allies say that his new executive order to establish a national framework for artificial intelligence regulation will give the U.S. an edge over China in the AI war and pave the way for innovation. But Democratic lawmakers and state officials, as well as consumer advocacy groups, are raising alarms […]

Read More
Broadcom tumbles 11% despite blockbuster earnings as ‘AI angst’ weighs on Oracle, Nvidia
Technology

Broadcom tumbles 11% despite blockbuster earnings as ‘AI angst’ weighs on Oracle, Nvidia

Broadcom CEO Hock Tan. Lucas Jackson | Reuters Broadcom’s quarterly results and guidance sailed past Wall Street estimates. It didn’t matter. The chipmaker’s shares plummeted 11% on Friday, on pace for their worst day since January, as investors ran for the exits on the artificial intelligence trade. Oracle dropped 4% a day after plunging 10% […]

Read More
Jim Cramer says buy the sharp decline in Broadcom. Here’s why
Technology

Jim Cramer says buy the sharp decline in Broadcom. Here’s why

CNBC’s Jim Cramer told investors on Friday to buy the sharp, post-earnings sell-off in Broadcom shares. “This company is on fire,” Cramer said on ” Squawk on the Street ,” pointing to the custom chipmaker’s long list of notable clients, including Alphabet , Meta Platforms , ByteDance-owned TikTok, and Anthropic. The stock sank nearly 11% […]

Read More