Nvidia is betting on artificial intelligence to revive U.S. manufacturing. The Silicon Valley company on Tuesday is unveiling a major AI infrastructure upgrade as part of a $2 billion partnership with Coherent. This involves a Texas factory producing materials for lasers that enhance chip efficiency. Nvidia CEO Jensen Huang believes AI can create jobs rather than replace them. Nvidia is shifting from chip development to entire AI systems, with production focused in the U.S. The factory is expected to create 1,000 jobs. The AI industry is seen as crucial for economic growth and national security, with bipartisan government support.
AMD is announcing a deal to supply its chips to OpenAI for building AI infrastructure. The agreement includes providing high-performance graphics chips for a total of 6 gigawatts of computing power for OpenAI's next-generation AI systems. The first gigawatt is expected to come online in the second half of next year. AMD has also issued OpenAI a warrant to buy up to 160 million shares of its stock, about 10% of the company. This deal is a boost for AMD, which has been trailing behind Nvidia, a favorite among AI companies for its graphics processing chips.
By ELAINE KURTENBACH and WYATTE GRANTHAM-PHILIPS AP Business Writers
Nvidia's CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used for artificial intelligence to China. The company shared the news in a blog post late Monday and Huang also spoke about it on China's state-run CGTN television network. The White House announced in April that it would restrict sales of Nvidia's H20 chips and AMD's MI308 chips to China. Nvidia said the tighter export controls would cost it an extra $5.5 billion. Huang and other technology leaders have been lobbying President Donald Trump to reverse the restrictions, arguing they hinder U.S. competition in a leading edge sector in a major technology market.
