Apple unveils $500 billion US spend, including a new Apple Intelligence server factory
Apple will invest more thna $500 billion in new factories, AI, silicon engineering, etc., in the United States, including a new server manufacturing facility in Houston.
The announcement promises to bring new facilities and expanded operations in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington over the next five years. Apple will hire 20,000 new employees for new high-skilled manufacturing jobs across America, primarily focused on research and development, silicon engineering, software development, AI and machine learning, and double its US Manufacturing Fund, established in 2017, to $10 billion.
“The $500 billion commitment includes Apple’s work with thousands of suppliers across all 50 states, direct employment, Apple Intelligence infrastructure and data centers, corporate facilities and Apple TV+ productions in 20 states,” it reads. “Apple remains one of the largest US taxpayers, having paid over $75 billion in US taxes over the past five years, including $19 billion in 2024 alone.”
Apple announces $500 billion US spend
The historic investment, Apple’s largest-ever spending commitment, includes a new 250,000-square-foot server manufacturing facility in Houston, set to open next year. Here, Apple will manufacture custom Private Cloud Compute servers using in-house-designed processors to power Apple Intelligence. The company claims the facility will “create thousands of jobs.”
“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,” Apple CEO Tim Cook was quoted as saying in the press release.
“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.”
As part of this fund, Apple will order chips from TSMC’s Arizona facility which began mass-producing Apple silicon last month. Apple also promised to open a dedicated Detroit facility, called Apple Manufacturing Academy, where Apple experts will advise local businesses on implementing AI and smart manufacturing techniques.
Tariffs on Chinese imports
The announcement came hot on the heels of Tim Cook’s meeting with President Donald Trump last week. “Yesterday I had Tim Cook in the office from Apple,” Trump said at a White House gathering on Friday following the meeting. “He’s investing hundreds of billions of dollars. “That’s what he told me. Now he has to do it.”
“Yesterday I had Tim Cook in the office from Apple. He’s investing hundreds of billions of dollars. I don’t know — I hope he’s announced it. Hope I didn’t announce it! But what the hell. All I do is tell the truth. That’s what he told me. Now he has to do it, right? So it’s a…
— Jennifer Jacobs (@JenniferJJacobs) February 21, 2025
Apple similarily announced a massive investment during the first Trump administration back in 2018 when it unveiled a $350 billion spend, 20,000 new jobs and a new facility in Austin, which is still under construction. The latest $500 billion commitment could be a way for Apple to appeal for tariff exemptions. The new administration has already imposed a ten percent tariff on goods imported from China, with a 25 percent tariff for chips also under consideration.
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