Apple to build AI server factory in Houston amid $500B US expansion, adding 20,000 jobs
Apple will use Alibaba AI tech in iPhones
Apple Inc.’s iPhones will use Alibaba Group Holding Ltd.’s AI technology, the Chinese firm’s chairman said, affirming reports the e-commerce pioneer had scored a coveted role in helping power the iPhone in the world’s top mobile arena. Chairman and Co-founder Joe Tsai confirmed this during a panel at the World Governments Summit 2025 in Dubai.
Bloomberg
Apple is planning to make some big investments in Texas. In their newsletter, Apple said it will establish a new facility for AI servers in Texas, contributing to a $500 billion investment in the U.S. for the next four years.
Here is what to know about the investment in Texas.
Where is Apple going to build its next facility in Texas?
According to Apple’s newsletter, Apple and its partners will establish a state-of-the-art manufacturing facility in Houston to produce servers for Apple Intelligence, the personal intelligence system designed to assist users in writing, self-expression, and task completion.
Alongside establishing the new Texas facility, Apple announced plans to hire approximately 20,000 employees nationwide over the upcoming period.
What is Apple spending $500 billion on?
As per Apple’s newsletter, the $500 billion investment includes Apple collaborating with thousands of suppliers in all 50 states, providing direct employment opportunities, and developing Apple Intelligence infrastructure and data centers, corporate facilities, and Apple TV+ productions across 20 states.
Apple continues to be one of the largest taxpayers in the U.S., having contributed over $75 billion in taxes in the past five years, with $19 billion paid in 2024 alone.
What did Apple’s CEO say about the move to Texas?
In the announcement, Apple’s CEO Tim Cook shared his excitement for the future of the tech company.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future,” Cook said. “From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we’re thrilled to expand our support for American manufacturing. And we’ll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”
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