Nvidia has partnered with Foxconn and Wistron to construct AI server assembly plants in Houston and Dallas, Texas, in a bid to circumvent the massive import tariffs on expensive AI hardware expected to be imposed by the Trump administration. The construction is set to commence shortly, with assembly operations anticipated within the next 12 to 15 months. This marks Nvidia’s inaugural effort to assemble its AI infrastructure entirely within the United States, with the goal of bolstering manufacturing resilience and catering to the burgeoning global demand.
The company expects to produce $500 billion worth of AI machines over the next four years. Nvidia plans to leverage its own technologies, including Omniverse and Isaac GR00T, to optimize the design and operation of these new facilities, thereby introducing AI-driven improvements across every stage of the production process.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said Jensen Huang, Nvidia’s chief executive. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency.”
Building AI servers in the U.S. is a significant move for Nvidia, as it localizes the AI supply chain. Given the high price of AI servers, the more expensive labor costs in the U.S. are not expected to substantially impact their overall cost. Furthermore, as Nvidia and its partners plan to increasingly integrate AI and robotics at the plants in Dallas and Houston, the actual costs of assembled systems are likely to decrease with further optimizations.
