Nvidia’s CEO Jensen Huang is wagering that an AI buildout can revive U.S. manufacturing, with a test case in Texas. The company is formally unveiling plans for a major upgrade to its AI infrastructure as part of its $2 billion partnership with Coherent, the owner of a factory in Sherman, Texas.
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The factory will produce the material for a laser to transmit data among computer chips, allowing those chips to work as a single system with more power, speed, and efficiency. This technology is part of what Huang has dubbed ‘AI factories.’
The factory represents a fundamental test of whether AI will be a source of job creation instead of a technology that supplants workers. Coherent estimates that the factory will create 1,000 jobs, with about 550 of them in advanced manufacturing, engineering, and technical roles.
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Nvidia is moving from developing computer chips to providing entire AI systems. The company is clustering more production in the U.S., with chipmaking centered in Arizona and the assembly process located in Texas, to create a reliable domestic supply chain.
The investment in the Texas factory is part of a larger trend of AI investment in the U.S. Economists estimate that the five largest U.S. technology firms invested $380 billion last year as part of the AI buildout, and that sum could roughly double this year.
The possibility of rapid economic growth as AI accounts for more of U.S. gross domestic product has not been lost on President Donald Trump, who sees the industry as essential to American greatness.
Original reporting: KTBS 3 (Shreveport) — read the source article.
