Nvidia Invests $500 Billion In US AI Supercomputers Amid Trade Tensions

Nvidia, a prominent chipmaker, has announced a significant investment of $500 billion in the United States to build AI supercomputers. This move comes amid escalating trade tensions and the looming threat of a trade war fueled by U.S. tariffs on foreign goods. The company aims to localize its AI supercomputer manufacturing operations within the U.S., reflecting the growing pressure on tech firms to shift production domestically.

Nvidia plans to develop manufacturing spaces in Phoenix, Arizona, as well as in Dallas and Houston, Texas. These facilities will house the production of the Blackwell chip and AI supercomputer operations. The combined size of the facilities will cover one million square feet, with production at each location expected to ramp up over the next two years. The goal is to produce half a trillion in AI infrastructure within the United States.

Founder and CEO of Nvidia, Jensen Huang, emphasized the strategic importance of this move. "The engines of the world’s AI infrastructure are being built in the United States for the first time," Huang stated. "Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency."

Until now, Nvidia has relied heavily on overseas manufacturing, particularly in Taiwan. The company is partnering with Foxconn, Wistron, and Taiwan Semiconductor Manufacturing Company to develop the new locations. These partners are crucial in manufacturing Nvidia’s advanced computer chips, including the new Blackwell chip.

The announcement has garnered praise from the Trump Administration, which sees it as a part of its broader push for domestic manufacturing. The White House described the move as the "Trump effect in action," highlighting the administration's efforts to prioritize U.S.-based chip manufacturing as part of a broader initiative to revitalize American manufacturing.

In January, the Trump Administration announced a new AI initiative called Stargate, led by Oracle, OpenAI, and Softbank. The Stargate project aims to invest $500 billion in AI infrastructure within the United States, further emphasizing the administration's commitment to onshoring these industries. The White House stated that onshoring these industries is beneficial for American workers, the economy, and national security.