Nvidia to invest $500 BILLION in US-based AI, launches first-ever production of US-made supercomputers

For the first time, Nvidia will be mass producing AI supercomputers in the United States, as the computer chip giant will be ramping up production of its Blackwell AI chips in Phoenix, Arizona.

Nvidia published a press release on Monday morning, announcing that the company would be "working with its manufacturing partners to design and build factories that, for the first time, will produce NVIDIA AI supercomputers entirely in the U.S."

The company announced that it has started to produce its Blackwell chips at the Taiwan Semiconductor Manufacturing Company (TSMC) manufacturing plant located in Phoenix and will be building a supercomputer manufacturing plant in Houston, Texas. Production for the chips as well as the supercomputers will be ramping up over the next 12-15 months.

This comes as the Trump administration has been calling for more investment in the US and brokering deals with other countries and tech companies to invest in energy, AI technology, as well as other technology in the United States. The company's stock saw a bump in the market with the announcement.

The Trump administration's Commerce Secretary Howard Lutnick said in response to Nvidia's investment, "This is the plan."

"Within the next four years, NVIDIA plans to produce up to half a trillion dollars of AI infrastructure in the United States through partnerships with TSMC, Foxconn, Wistron, Amkor and SPIL. These world-leading companies are deepening their partnership with NVIDIA, growing their businesses while expanding their global footprint and hardening supply chain resilience," Nvidia said in the press release.

Founder and CEO of Nvidia Jensen Huang said, “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."

In the last week, the moves come amid a trade war with China, which has halted the exporting of rare earth metals and magnets, which are key to many different high-tech devices that will tap into AI technology in coming years.

The suspension of the exports from China in part come as a response to the tariffs that Trump has imposed on China as well as other countries, with China having the highest tariffs at a 145 percent rate total. Last Friday, Trump exempted technology such as phones, laptops, and other imports coming to the United States, but China has still kept its suspension of the rare earth metals.