Nvidia Yields to Trump Pressure, Commits $500 Billion for AI Infrastructure in the U.S.

Nvidia has announced a massive investment plan worth up to $500 billion to build AI infrastructure in the United States over the next four years. The move marks a significant shift under growing political pressure from the Trump administration to reshore technology manufacturing.

The company’s next-generation AI chips, dubbed Blackwell, will be produced at TSMC’s facility in Phoenix, Arizona. Meanwhile, a new supercomputer plant will be constructed in Texas by Foxconn and Wistron, with operations expected to begin within 12 to 15 months.

“Expanding our manufacturing footprint in the U.S. helps us meet surging demand for AI chips and strengthens supply chain resilience,” said Nvidia CEO Jensen Huang, quoted by Reuters on Monday (April 15, 2025).

Analysts, however, interpret the move more as a political concession than a pure business strategy. Gil Luria, an analyst at D.A. Davidson, stated that Nvidia would not have shifted production to the U.S. without pressure from the Trump administration.

“The $500 billion figure is likely exaggerated, similar to Apple’s previous investment claims,” Luria noted.

For context, Apple had earlier pledged a similar amount, including plans to build an AI facility in Texas.

Nvidia’s announcement came just hours after the U.S. government exempted electronics such as smartphones and chips from import tariffs, although new tariffs specifically targeting imported chips are expected soon.

The policy shift signals increasing awareness within the Trump administration about the potential negative effects of tariffs on consumers and the rapidly growing AI industry.

Trump himself linked Nvidia’s move to the upcoming election.

“They’re doing it because of the November 5 election—and because of tariffs,” Trump said during a briefing at the White House.

Though he previously downplayed the immediate effects of high tariffs, Huang hinted last March that Nvidia would eventually move more of its production to the U.S. over the long term.

Nvidia also confirmed that TSMC’s Arizona plant has already begun manufacturing its latest Blackwell chips, and the expansion is expected to generate hundreds of thousands of new jobs in the coming years.