Apple to build AI servers in Houston, invest $500B in U.S. economy

AppleInsider

With a new Texas factory and increased manufacturing support across the States, Apple has announced it will create 20,000 new American jobs as part of a four-year, $500 billion investment plan to include Apple Intelligence server farms.

Inside Apple's R&D center in Austin, Texas -- image credit: Apple

Following Apple CEO Tim Cook's February 2025 meeting at the White House, Apple has confirmed President Trump's announcement of massive US investment.

"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," Cook said in a statement. "From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing."

"And we'll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation," he continued.

Apple's investment plan includes:

• Opening a new advanced manufacturing facility in Houston


• Double its US Advanced Manufacturing Fund


• Create a manufacturing academy in Michigan


• Increase research and development across the US

The Houston facility will specifically be for the production of servers that are to be used to support Apple Intelligence. Apple says that these servers, which provide its Private Cloud Compute system, were previously manufactured outside the US.

Texas Instruments' new semiconductor wafer fabrication plant in Lehi, Utah -- image credit: Apple

As part of supporting Apple Intelligence, the company says that it also intends to continue "expanding data center capacity in North Carolina, Iowa, Oregon, Arizona, and Nevada."

Apple hasn't specified how it will increase research and development, but has said that it will be to support what it describes as "cutting-edge fields like silicon engineering."

As part of this, Apple says it plans to recruit around 20,000 people for this R&D effort, as well as software development and AI.

It has, though, specified that its doubled Advanced Manufacturing Fund investment means it will be committing $10 billion to promoting skills development. That includes a multi-billion dollar commitment to TSMC's Fab 21 plant in Arizona.



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rob53

Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.

thesparkle

Way to lie down and be counted. Exactly the sort of “Can’t Do” attitude that poisons us here in Europe. Believe it or not, some of us still look to you lot for a bit of testosterone fuelled inspiration. 

I’d *** swim the Atlantic and walk the rest of the way for a job at that place. 

No way on God’s earth Cook agreed to anything that wasn’t fully in Apple’s interest. The media may like to portray these people as children but the sharp end of these business deals is about as real as it gets. 

rob53 said:

Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.

avon b7

rob53 said:

Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.

The servers aren't for sale so that isn't a factor in that particular regard. They are for in-house use so Apple can swallow the costs. They were built outside the US previously for good reason. 

Now, with tariffs and all, and also federal or state incentives, it probably works out as acceptable to do the manufacturing on US soil. 

Reducing supply chain external interplay (and possible interference) is also becoming a hot topic so the more manufacturing is done at home makes sense as long as it doesn't break the bank to do so. 

I agree that 20,000 jobs is a drop in the ocean but anything is better than nothing. How many will go to US citizens is another matter but I'm sure that Cook pushed back on Trump thinking in that regard in their meetings in order for Apple to be able to hire whoever is needed with little red tape.

Most of this announcement is probably not really Trump related. The server farms (Apple manufactured or not) were probably in the final stages of planning before Trump got back into the White House. 

quakerotis

Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.

blastdoor

This makes sense to me and did last year too 

https://forums.appleinsider.com/discussion/comment/3462250/#Comment_3462250

blastdoor

rob53 said:

Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.

I bet Texas is cheaper than NJ;

https://www.tomshardware.com/tech-industry/amd-is-in-talks-to-sell-usd4-billion-ai-server-assembly-plants

eriamjh

Texas may have a lot to do with energy costs, also.   They’re huge on solar in spite of being red.  

edited February 24

randominternetperson

Half a trillion dollars?? Is that figure correct?

Ah, I see that it basically counts every dollar Apple spends in the US over 4-year period, including, for example Apple TV+ production costs and (likely) every pen and paperclip purchased in the US. Still that is a lot of money.

Smart move to stay on the good side of the capricious powers in Washington without actually doing anything extraordinary.  

edited February 24

jfabula1

quakerotis said:

Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.

At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost.
Tim will worked harder for this great American tax paying company. 

gatorguy

rob53 said:

Why in Texas? People thought Apple's products were getting too expensive, just wait for products coming out of Texas. They will break everyone's budget. Who in Texas will actually work at this manufacturing facility? Will everything be automated? Where will the people for these 20K come from, India? Who's going to build the facility? Not the hardest workers from south of the border. trump made sure of that.

Final assembly will be in Texas, and only for servers that Apple is using in their own facilities. All the pieces will still be imported, already matched and boards fully assembled, just needing to be put in the shells. In actuality, probably nothing changes from what Apple was already doing and planning. But Trump likes his boasting moments and Apple is giving him one he'll be allowed to take credit for. 

edited February 24

foregoneconclusion

jfabula1 said:

» show previous quotes

quakerotis said:

Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.

At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost.
Tim will worked harder for this great American tax paying company. 

Sounds like you're not aware that the GOP plans on doing a $4.5 trillion tax cut that primarily benefits corporations and the wealthy. They're going to extend the $2 trillion cut from 2017 and add another $2.5 trillion on top. Keep in mind that the $2 trillion cut from 2017 was in place during the entire Biden administration. So if you didn't like the Biden economy,  the ineffectiveness of that tax cut was part of it. 

discountopinion

Overall it makes eminent sense for Apple to invest in its largest market in the world similar to how it is investing in other markets to ensure market penetration and traction.

Texas is becoming/is a vibrant hub of innovation and looks like more and more tech companies want to diversify out of California.

foregoneconclusion

eriamjh said:

Texas may have a lot to do with energy costs, also.   They’re huge on solar in spite of being red.  

Texas is going to finally connect their notoriously erratic energy grid to other states...courtesy of (gasp) the Biden administration.

https://spectrumlocalnews.com/tx/south-texas-el-paso/news/2024/10/04/texas--grid-is-closer-to-being-connected-to-the-u-s--grid

robin huber

Tim is a smarter businessman than Trump. He knows how to win while making the other guy think he did. 

9secondkox2

Wow. Now that’s commitment. Glad to see Apple investing in the country that gave it life. That’s more than they invested in China. 

And Texas is the perfect spot to manufacture. Favorable laws, favorable economy, and all the other tech guys have moved or are moving there already. 

Not the biggest fan of ai, but it’s only getting bigger, so good to see Apple going all in. 

9secondkox2

foregoneconclusion said:

» show previous quotes

jfabula1 said:

quakerotis said:

Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.

At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost.
Tim will worked harder for this great American tax paying company. 

Sounds like you're not aware that the GOP plans on doing a $4.5 trillion tax cut that primarily benefits corporations and the wealthy. They're going to extend the $2 trillion cut from 2017 and add another $2.5 trillion on top. Keep in mind that the $2 trillion cut from 2017 was in place during the entire Biden administration. So if you didn't like the Biden economy,  the ineffectiveness of that tax cut was part of it. 

Oh, Tax cuts are bad thing now? LOL

Tax cuts are tax cuts. Not increased. That’s a great thing. 

Tax cuts are good for everyone. And before you cry about wealthy people getting a big break, you have to realize how tax brackets work and how much of a ripoff taxes are currently. Recently took a big career jump. Pay went up by 25,000/year. 

Was so excited. Then I got my first paycheck. Was the same as before. All due to my new friend, Mr. New tax bracket. So I’m genuinely happy for anyone and everyone (including wealthy people) who get a tax break. The bracket system needs to disappear. 

And if corporations get a big tax break, that’s a win for literally everyone as they save money and don’t have to keep jacking up prices to stay profitable. 

Also, can you imagine durvivg the Biden economy without the previous admin tax cuts in place, sheesh. That definitely helped. It was bidenomics inflation that everyone hated. Not the previous tax cuts that helped most folks stay somewhat afloat during the last four years. 

Apple is making moves and investments now that were unheard of the last four years. Sure looks like they’ve got confidence now that they didn’t have for years. 

edited February 24

libertyandfree

foregoneconclusion said:

» show previous quotes

jfabula1 said:

quakerotis said:

Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.

At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost.
Tim will worked harder for this great American tax paying company. 

Sounds like you're not aware that the GOP plans on doing a $4.5 trillion tax cut that primarily benefits corporations and the wealthy. They're going to extend the $2 trillion cut from 2017 and add another $2.5 trillion on top. Keep in mind that the $2 trillion cut from 2017 was in place during the entire Biden administration. So if you didn't like the Biden economy,  the ineffectiveness of that tax cut was part of it. 

  The new taxcuts are mostly an extension of the exisiting tax law from 2017.  The lowering of the corporate taxes brought the US from 2nd highest in the OECD to the middle of the pack and stopped the corporate inversions, which every liberal conveniently ignores.  BTW, tax receipts are at al time highs.  Seems obvious but apparently needs to be stated, that all tax cuts go mostly to those who earn more money because they also pay the highest amount taxes and at the highest tax rates (The US has a highly progressive income tax system).  This very simple 4th grade mathematics seems beyond most liberals and Democratic Congress peoples comprehension - or so they pretend.  They beleive a tax cut means people that pay zero or almost zero in income taxes need to get thousands of dollars back from the govt, tax cuts are for people that pay taxes, it's not govt welfare.  

xed

This was surely money that was already going to be spent in the US. It's lip service. Nothing more.

strangedays

discountopinion said:

Overall it makes eminent sense for Apple to invest in its largest market in the world similar to how it is investing in other markets to ensure market penetration and traction.

Texas is becoming/is a vibrant hub of innovation and looks like more and more tech companies want to diversify out of California.

Not really. Tech companies are founded and flourish in California, for lots of reasons. Then, after, when they’re trying to cut costs, they move to Texas for…tax breaks. That’s it. 

The innovative part happens in California. 

gatorguy

libertyandfree said:

» show previous quotes

foregoneconclusion said:

jfabula1 said:

quakerotis said:

Like so much of a bribery victim's fealty, this will amount to no investment, no jobs, but plenty of time for T**** (the convicted felon and sexual predator) to lead his boy Cook around on a leash.

At least his trying instead of giving away your earned tax dollars. Get over it dude, you’re still crying of your election lost.
Tim will worked harder for this great American tax paying company. 

Sounds like you're not aware that the GOP plans on doing a $4.5 trillion tax cut that primarily benefits corporations and the wealthy. They're going to extend the $2 trillion cut from 2017 and add another $2.5 trillion on top. Keep in mind that the $2 trillion cut from 2017 was in place during the entire Biden administration. So if you didn't like the Biden economy,  the ineffectiveness of that tax cut was part of it. 

  The new taxcuts are mostly an extension of the exisiting tax law from 2017.  The lowering of the corporate taxes brought the US from 2nd highest in the OECD to the middle of the pack and stopped the corporate inversions, which every liberal conveniently ignores.  BTW, tax receipts are at al time highs.  Seems obvious but apparently needs to be stated, that all tax cuts go mostly to those who earn more money because they also pay the highest amount taxes and at the highest tax rates (The US has a highly progressive income tax system).  This very simple 4th grade mathematics seems beyond most liberals and Democratic Congress peoples comprehension - or so they pretend.  They beleive a tax cut means people that pay zero or almost zero in income taxes need to get thousands of dollars back from the govt, tax cuts are for people that pay taxes, it's not govt welfare.  

In and of itself, I don't necessarily disagree. But you aren't acknowledging what the current administration will do to accomplish it.

More of the safety net put in place for the poorest among us, and often with the fewest opportunities to move higher in the pecking order, will be snatched away to shift to the wealthiest. Without “stealing from the poor” those tax cuts and more can't be advanced. There was a time when the budget was not only balanced, but delivered a surplus paying down the deficit. It was not so long ago either, happening in your adult lifetime. You should read how and who made it happen. Trumps method will not work to do the same. 

edited February 24