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Apples $500 Billion AI Investment to Create 20,000 Tech Jobs
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Shane Snider, Senior Writer, InformationWeekFebruary 24, 20253 Min ReadLuay Bahoora via Alamy StockApple on Monday announced a plan to spend $500 billion to bolster its artificial intelligence ambitions that will add 20,000 research and development jobs in the US over the next four years.The plan will include the expansion of data center facilities in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington. The company, with the help of Taiwans Foxconn, will build a 250,000-square-foot facility in Houston, Texas to manufacture AI servers to support Apple Intelligence.US President Donald Trump sought to claim the announcement as a boost to his administration, which in recent days saw falling approval ratings after a whirlwind start to his second term that included thousands of federal government firings. Trump met with Apple CEO Tim Cook last week and in social media posts touted Mondays announcement as a vote of confidence in his administration.During an event with state governors in Washington, D.C., last week, Trump said Apples investment was proof that his tariff efforts are paying off. Apple manufactures many of its products in China and faces new 10% tariffs on those goods. [Apple] stopped two plants in Mexico that were starting construction, Trump said. They just stopped them -- theyre going to build them here instead, because they dont want to pay the tariffs. Tariffs are amazing.Related:Despite Trump's assertions, Apple did not state if the proposed tariffs factored into its plans. It's also unclear what "plants" Trump was referring to, as Apple has not announced specific plans to build in Mexico. Reports say Foxconn, which produces iPhones for Apple in China and India, is planning to build a factory in Mexico in partnership with Nvidia.In 2021, during the Biden Administration, Apple made a $430 billion commitment to creating 20,000 new jobs across the country over five years. But its plan to build a new campus in Research Triangle Park in North Carolina was paused in 2024. And during the first Trump administration, Apple announced a $350 billion, five-year spending plan. Apple has not publicly disclosed how much of those previous commitments were fulfilled.Cook said Apple is committed to boosting domestic manufacturing.We are bullish on the future of American innovation and were proud to build on our long-standing US investments with this $500 billion commitment to our countrys future, Cook said in a statement. He said the company would double its Advanced Manufacturing Fund, which invests in training for high-skilled manufacturing.Related:Apple said the 20,000 jobs will add to the 2.9 million jobs the company already supports throughout the country through direct employment, work with US-based suppliers and manufacturers, and developer jobs. The new positions will focus on research and development, software development, silicon engineering, and AI and machine learning advancements.This is a welcome sign as Apple steps up to design its manufacturing infrastructure for the intelligent age, Boston University Questrom School of Business professor emeritus Venkat Venkatraman wrote in a post on LinkedIn. Could this help Apple get into a broader set of digital products? Possibly. It also signals a major geographical realignment of its global footprint (and political realities)!Plan DetailsThe announced Texas manufacturing facility is slated to open in 2026 and will produce AI servers previously manufactured outside of the US.The companys US Advanced Manufacturing Fund, which was created in 2017 to spur high-skilled manufacturing training and support innovation, will increase from $5 billion to $10 billion. The expanded effort includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMCs Arizona plant.In Detroit, the company will launch the Apple Manufacturing Academy to offer free in-person and online courses to teach project management and manufacturing process optimization, and other smart manufacturing techniques.Related:About the AuthorShane SniderSenior Writer, InformationWeekShane Snider is a veteran journalist with more than 20 years of industry experience. He started his career as a general assignment reporter and has covered government, business, education, technology and much more. He was a reporter for the Triangle Business Journal, Raleigh News and Observer and most recently a tech reporter for CRN. He was also a top wedding photographer for many years, traveling across the country and around the world. He lives in Raleigh with his wife and two children.See more from Shane SniderNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also LikeWebinarsMore WebinarsReportsMore Reports
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