Jensen Huang wants to build things in America, and he’s putting Nvidia’s money where his mouth is. The Nvidia CEO laid out a sweeping vision for AI-driven manufacturing reshoring, arguing that the construction of “AI factories” is quietly becoming the largest domestic industrial buildout in a generation.
At the center of the push: a $2 billion partnership with Coherent to expand a facility in Sherman, Texas, dedicated to producing indium phosphide lasers used in chip interconnects. The project is expected to create roughly 1,000 jobs, with about 550 of those in advanced manufacturing, engineering, and technical roles.
The numbers behind the narrative
Huang estimates that AI infrastructure initiatives have already generated approximately 500,000 jobs across the United States. That figure spans construction, skilled trades, energy, and the kind of advanced manufacturing work that policy wonks have spent decades trying to bring back onshore.
Nvidia’s broader ambition extends well beyond a single Texas facility. The company is pursuing deals to establish multi-gigawatt AI factory capacity, starting with an initial 4.25 GW in Ohio. For context, a single gigawatt can power roughly 750,000 homes.
Third-party investments mobilized by these initiatives are projected to exceed $500 billion, a figure that reflects not just Nvidia’s own spending but the cascading capital requirements across the supply chain.
Domestic production, by design
Nvidia has committed to procuring hundreds of billions of dollars in US-manufactured electronics over the next four years. The shift involves manufacturing critical AI systems, including Nvidia’s Blackwell and Grace Blackwell architectures, domestically. TSMC handles fabrication, while Foxconn and Wistron serve as assembly partners, all with expanded US operations.
This reshoring push didn’t happen in a vacuum. The CHIPS Act created significant financial incentives for domestic semiconductor and advanced manufacturing investment, and companies like Nvidia have structured their expansion plans to take advantage of those provisions.
The energy dimension is equally significant. Nvidia’s plans require massive investments in power generation and grid infrastructure. Huang has described these as “market-based investments in energy infrastructure,” distinguishing them from government-subsidized projects.