Apple Seeks Pivot on AI as It Pours Additional $100B Into US

Trump’s tariff threat on semiconductors appears to be accelerating tech reshoring, with Apple pledging substantial investment in U.S. investments to sidestep penalties and align with the White House’s manufacturing goals.

Apple will invest an additional $100 billion in U.S. manufacturing, bringing its total domestic spending to $600 billion, CEO Tim Cook announced Wednesday alongside President Donald Trump at the White House.

The latest investment follows Apple’s earlier commitment in February to invest $500 billion in U.S. infrastructure.

The expanded commitment includes a new American Manufacturing Program aimed at ramping up domestic production of key components used in Apple devices.

“Earlier this year, we broke ground on a new factory in Houston to make advanced AI servers, and just last month, the very first test unit rolled off that factory’s line, proudly made in America,” Cook said.

Apple said the $600 billion would also go toward partnerships, supply chain expansion, and rare earth mineral harvesting.

Apple’s shift to infrastructure comes as the company faces growing pressure to show progress in AI. Apple Intelligence has struggled to gain traction since its announcement in October 2024.

In June, Apple’s head of foundation models, Rouming Pang, left the company to join Meta’s new Superintelligence Labs.

Despite those setbacks, Cook said the company would continue to push its AI ambitions.

“We’re also significantly growing our investments in AI, including expanding data center capacity in North Carolina, Nevada, Iowa, Arizona, and Oregon,” Cook said. “So we’re going to keep making investments right here in America.”

The company is also turning to domestic sources for other components, including rare earth minerals and advanced magnets. In total, Apple said the American Manufacturing Program would see 450,000 jobs created in all 50 states.

Trump, who has long pressed companies to bring jobs and production back to the U.S., amid threats of higher tariffs, praised Apple’s announcement, adding that his administration would “make sure they’re treated well.”

“We’re going to be putting a very large tariff on chips and semiconductors,” Trump said. “But the good news for companies like Apple is if you’re building in the U.S.—or have committed to build in the U.S.—there will be no charge.”

Apple joins a growing list of tech giants making major AI infrastructure commitments aligned with the White House’s goals. In January, OpenAI partnered with Oracle and SoftBank to launch the $500 billion Stargate Project. In April, chipmaker Nvidia pledged a similar $500 billion investment to build AI supercomputers in the U.S.

Reactions to the announcement were mixed, with some praising the move as a patriotic move to bring jobs back to the United States, while others criticized Cook’s appearance alongside Trump.

“This is huge news for our country!! It’s about time to bring all manufacturing back to America!” one user on X said.

“This is unprecedented,” another wrote. “American Made is BACK!!!”

“Yep, that’s it. I was going to get rid of my Apple stuff anyway, but this seals it,” one user wrote on BlueSky. “I’m done with them. No more knee benders.”

“I don’t exactly know why I have used almost no Apple products, other than a couple of iPods and Apple Music,” another wrote. “But after Tim Cook’s absolute capitulation, I am really happy about all that.”

Apple did not respond to a request for comment by Decrypt.