Apple Rolls Out $500B AI Plan with Server Factory in Texas

Apple announced it is building a new factory to manufacture AI servers in Texas which will feed its numerous #AI data centers. The factory is part of the USD 500 billion plan to keep Apple in the AI race along with Google and Microsoft. The announcement by Apple came after a similar one by Softbank to invest USD 500 billion in American AI.

The server factory is in Houston and will have a floor area of 250,000 square feet (23,225 square meters). The servers are destined to run Apple Intelligence, which is Apple’s equivalent of OpenAI ChatGTP or DeepSeek AI.

Currently, Apple relies on servers manufactured by other manufacturers but this will change when its own server factory becomes operational in 2026. The half-trillion plan is expected to generate high-paying R&D 20,000 jobs in the US.

“We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment to our country’s future. We’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”

Apple CEO Tim Cook

Apple is partnering with Taiwanese contract manufacturer Foxconn on the new server factory. Apple and Foxconn have a long-standing relationship as Foxconn already manufacturers its iPhone smartphone lines in China and India.

The servers will used Apple’s own in-house designed chips which the company has developed since 2021. At the same time, Apple and Broadcom are working together on the next generation of chips which will scheduled to also come out in 2026, in step with the factory opening.

Apple’s plan include building and expanding data centers across the USA in North Carolina, Iowa, Oregon, Arizona and Nevada. The Apple chips will probably be manufactured by TSMC new fab in Arizona. The move is in line with Trump’s policy of bringing the manufacturing of key technologies back in America.