en.Wedoany.com Reported - Nvidia is partnering with Coherent to build a factory in Sherman, Texas, as part of a $2 billion AI infrastructure upgrade. The facility will produce laser materials used to transmit data between computer chips, enabling them to operate as a single system, thereby enhancing computing power, speed, and efficiency.

In a statement, Huang said AI factories are the infrastructure of the new industrial revolution. The factory represents a fundamental test of whether AI can become a source of job creation, as Huang believes, rather than a technology that displaces workers. Currently, AI can already write software, analyze spreadsheets, run assembly lines, and even drive cars without significant human labor.

With Nvidia's market capitalization at approximately $5 trillion, Huang's vision has shifted toward developing complete AI systems. AI is driving academic breakthroughs and offering hopes for economic growth, but voters express concerns about AI's electricity consumption, potential unemployment risks, and national security threats. The U.S. government has recently begun adjusting its AI policy direction. The Trump administration previously believed that light-touch regulation was crucial for promoting AI development, but recently imposed export controls on the latest model from AI company Anthropic, leading the company to shut down all public access to those models for security reasons. Trump signed an executive order requiring new AI models to voluntarily undergo government review. He has also considered the government taking stakes in companies developing AI so that the public could benefit from anticipated windfall gains. Trump called Huang "smart," a "friend," and "remarkable," recalling that he once considered breaking up Nvidia to curb its dominance but ultimately acknowledged Huang as someone he needed to align with. Trump insisted that Huang accompany him on trips, most recently en route to China, where Air Force One picked up the leather-jacket-clad CEO in Alaska. Trump told the Taiwanese immigrant, "We are proud that you came to our country."

Coherent's factory in Sherman, Texas, has received bipartisan government support. The Biden administration approved $33 million in CHIPS and Science Act funding for its construction, and the Trump administration provided an additional $17 million grant to ensure that a critical part of AI infrastructure is manufactured in the United States. The factory will create 1,000 jobs, including construction workers, with approximately 550 in advanced manufacturing, engineering, and technology roles. The expansion will increase production of indium phosphide, a material used to create lasers with the light intensity of the sun's surface. Each second, light pulses flash through a glass fiber tube the thickness of a human hair hundreds of billions of times, enabling Nvidia's computer chips to share information and work together. Power consumption will be reduced by up to 50%, making computing faster and significantly lowering costs, thereby reducing the cost of AI usage and expanding its reach and capabilities.

Coherent CEO Jim Anderson said in a statement that this investment expands the U.S. capacity to manufacture key AI-enabling technologies, creates high-value jobs, and strengthens American leadership in advanced manufacturing, photonics, and innovation. Economists Jessica Wachter and Jonathan Wachter noted that the five largest U.S. tech companies invested $380 billion in AI construction last year, with that figure potentially doubling this year. They estimate that as AI's share of U.S. GDP grows, the economy could expand rapidly; AI currently accounts for about 3% of the economy, a share that could rise to between 8% and 39%. A Nvidia executive emphasized that the company is shifting from developing computer chips to providing complete AI systems, meaning more production will be concentrated in the United States. Chip manufacturing is increasingly centered in Arizona, while assembly processes are becoming more concentrated in Texas to ensure a reliable domestic supply chain. The executive stated that Nvidia is selling brains and nervous systems to customers, enabling the generated intelligence to create new products, discover new savings and business lines, allow manufacturers dependent on foreign suppliers to resume production in the U.S., and bring AI onto the factory floor—in their words, to "move atoms." Trump believes the industry is vital to the U.S., stating, "This is an incredible industry. It's bigger than any industry anyone has ever seen. We are far ahead of China. Whoever leads this industry will, to a large extent, truly lead the world—that's how important it is."

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com