Apple Vows to Build A.I. Servers in Houston and Spend $500 Billion in U.S

The company pledged the multibillion-dollar investment over the next four years and said it would create 20,000 jobs. The Texas facility is set to open in 2026.

By Meaghan TobinTripp Mickle and 

Days after Apple’s chief executive met with President Trump, the company said on Monday that it planned to spend $500 billion and hire 20,000 people in the United States over the next four years and open a factory in Texas to make the machines that power the company’s push into artificial intelligence.

“We are bullish on the future of American innovation, and we’re proud to build on our longstanding U.S. investments,” Tim Cook, Apple’s chief executive, said in a statement. The company made similar, smaller pledges during the Biden administration and Mr. Trump’s first term, though it has not yet followed through on some of those promises.

Mr. Cook met with Mr. Trump last week. After that meeting, Mr. Trump said Apple would shift production to the United States: “They’re going to build here instead because they don’t want to pay the tariffs,” he said in a speech to a gathering of governors.

With its investment, Apple said it would begin manufacturing artificial intelligence servers at a new 250,000-square-foot facility in Houston next year. Those servers, which will be made by the Taiwanese electronics giant Foxconn, will help the company expand its data center capacity in North Carolina, Oregon, Arizona and Nevada.

Apple will continue to make the bulk of what it sells — iPhones, iPads and Macs — in Asia. Its overseas manufacturing footprint has been a point of contention with Mr. Trump since before he was first elected president in 2016. For years, he has called on Apple to “start building their damn computers and things in this country, instead of in other countries.”

As the first Trump administration ratcheted up tariffs on China in 2019, Apple began shifting some of its manufacturing to Vietnam, India and other Asian countries. But it didn’t bring any of that production back to the United States.

Now, Apple is facing tariffs for the first time on iPhones and the threat of tariffs on other products made overseas. The majority of iPhones are made in China, and U.S. tariffs of 10 percent on all Chinese products took effect this month. Mr. Trump has also threatened reciprocal tariffs on India, as well as levies on imports from Canada, Mexico and other major trading partners.

Mr. Cook has worked with Mr. Trump in the past to help Apple avoid tariffs. The Trump administration avoided putting levies on smartphones and removed, at Apple’s request, a tariff on the Apple Watch in 2020.

Gene Munster, managing partner at Deepwater Asset Management, said he expected that Apple would again be spared from tariffs because of its promise to invest $500 billion in the United States.

The investment represents $39 billion in annual spending above what Apple promised to spend on employees and suppliers in the United States in 2021, he said. It is in line with Apple’s average annual increase in U.S. investment to support its growth since 2017. And the 20,000 jobs that Apple said it would add is in line with the number of people it would hire over a four-year span in the United States, as well.

“This is a calculated trade-off for tariffs,” Mr. Munster said. “Trump made it clear: You have to show me some love. The question is: How much is that worth to Apple? And the answer is they would rather spend this money themselves on infrastructure than give it to Uncle Sam.”

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