Nvidia is throwing hundreds of billions into the US tech industry. Over the next four years, the company will spend half a trillion dollars on electronics, with several hundred billion of that going directly into American manufacturing.
CEO Jensen Huang confirmed the plan, moving Nvidia’s supply chain away from Asia as Trump’s tariff threats loom. The move comes as TSMC, Apple, and other tech giants pump billions into US production.
Nvidia is now capable of producing its latest AI chips in America, thanks to TSMC, Foxconn, and other suppliers. Huang also sees Huawei as a rising competitor in China, adding pressure to Nvidia’s strategy.
Building massive AI infrastructure in the US
At Nvidia’s GTC conference, Huang introduced the company’s next-gen Vera Rubin AI chip. The plan is to connect millions of these chips in giant data centers, which will need enormous amounts of power. “We will procure, over the course of the next four years, probably half a trillion dollars worth of electronics,” he told the Financial Times. “And I think we can easily see ourselves manufacturing several hundred billion of it here in the US.”
Huang believes the Trump administration could speed up Nvidia’s expansion. “Having the support of an administration who cares about the success of this industry and not allowing energy to be an obstacle is a phenomenal result for AI in the US,” he said. Nvidia’s latest Blackwell systems are already being produced in America, with TSMC’s Arizona expansion strengthening supply chain resilience.
Taiwan remains a key part of the equation, but growing concerns about China’s aggression and tariffs are pushing companies like Nvidia to diversify. “The most important thing is to be prepared,” Huang said. “At this point, we know that we can manufacture in the US; we have a sufficiently diversified supply chain.” If Taiwan’s production is disrupted, Huang admits it would be “uncomfortable but should be OK.”
Nvidia faces growing threats from China
The US government has tightened controls on AI chip exports. Restrictions set to take effect in May will further limit sales of Nvidia’s market-leading AI chips to China. At the same time, Chinese chipmakers have been blocked from purchasing advanced lithography machines from ASML.
Despite these restrictions, Nvidia still makes billions in China. But competition is heating up. Huawei’s Ascend AI chips are making significant progress. “Huawei is the single most formidable technology company in China,” Huang said. “They have conquered every market they’ve engaged.” He criticized the US-led efforts to contain Huawei, calling them poorly executed. “We can’t assume that they are not going to be a factor.”
Nvidia’s Intel dilemma remains unresolved. The only American company capable of producing high-end chips like Nvidia’s is struggling with its foundry business. Intel’s leadership crisis was settled last week when Lip-Bu Tan took over as CEO. But Huang dismissed reports that Nvidia was considering forming a TSMC-led consortium to invest in Intel.
“We evaluate their foundry technology on a regular basis,” he said. “We look for opportunities to be a customer of theirs.” While he has “every confidence” that Intel can succeed, Nvidia is still not committing to using its services. “It takes a while to convince yourself and each other that a new supply chain ought to get built up.”
Meanwhile, Nvidia is keeping an eye on Chinese AI startup DeepSeek. At GTC, Huang discussed DeepSeek’s R1 model, calling it “fantastic” for being “the first open-sourced reasoning model.” He explained that it can break down problems step-by-step, generate multiple answers, and verify correctness.
“This reasoning AI consumes 100 times more compute than a non-reasoning AI,” he said. “It was exactly the opposite conclusion that everybody had.” Investors initially panicked when DeepSeek’s model triggered an AI stock sell-off, wiping $600 billion from Nvidia’s market cap in a single day.
Huang also highlighted new AI infrastructure for robotics and enterprises, with Nvidia forming partnerships with Dell, HPE, Accenture, ServiceNow, and CrowdStrike. He predicted that global computing investments could hit $1 trillion by 2030, with most of that money going into AI infrastructure.
“So, our opportunity as a percentage of a trillion dollars by the end of this decade is quite large,” Huang said. “We’ve got a lot of infrastructure to build.”
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