Key technology for the booming AI business

Nvidia: Building AI technology for 500 billion dollars in the USA

NVIDIA
Image source: JHVEPhoto / Shutterstock.com

The chip company Nvidia says it plans to produce AI technology worth up to 500 billion dollars in the USA over the next four years.

Two supercomputer factories will be built in Texas together with Asian contract manufacturers: with Foxconn in Houston and with Wistron in Dallas. Mass production should begin there in 12 to 15 months, Nvidia announced. Meanwhile, the production of chips for training and operating software with artificial intelligence has started with the Taiwanese semiconductor giant TSMC in Arizona.

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Chips from Nvidia have become the key technology for the booming artificial intelligence business. The majority are produced in Taiwan – which has been fueling concerns in the West for years that geopolitical tensions with China could dry up the supply of cutting-edge semiconductors.

US President Joe Biden, who was voted out of office in November, tried to promote the establishment of chip manufacturers in the USA with billions of dollars in subsidies. In fact, several companies announced the construction of new factories in the United States following subsidy commitments amounting to around 40 billion dollars. Biden’s successor Donald Trump, on the other hand, is relying on tariffs as a means of exerting pressure.

In the announcement, Nvidia mainly summarized already known plans and decisions made years ago and put an impressive price tag on this package. Trump used this as an opportunity to celebrate the announcement as a success of his tariff policy. He spoke of one of the biggest announcements of all time. The sum mentioned by Nvidia fits in with the plans of large cloud providers to expand their data centers.

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