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Economy

Apple unveils $500 billion US investment plan, promises 20,000 new jobs

Tuesday 25 February 2025 - 12:22 By: Dakir Madiha

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Apple has announced its largest-ever investment initiative, pledging to inject over $500 billion into the United States economy over the next four years. The tech giant also plans to create 20,000 new jobs as part of this ambitious strategy, which has drawn swift praise from U.S. President Donald Trump.

In a statement released Monday, Apple described the commitment as its "most significant spending and investment plan to date." The company intends to channel funds into areas such as artificial intelligence, engineering, and workforce training, while expanding its existing U.S. production facilities.

President Trump, celebrating the announcement on his Truth Social platform, attributed the move to the administration’s economic policies. "This record-breaking investment reflects confidence in what we’re doing—without it, they wouldn’t spend a dime," he wrote, extending thanks to Apple CEO Tim Cook, whom he recently met at the White House.

The investment comes amid ongoing trade tensions between the U.S. and China, a vital manufacturing hub for Apple. The Trump administration’s trade war with Beijing has raised concerns about potential tariffs that could disrupt Apple’s supply chain. Despite these challenges, the company has committed to bolstering domestic manufacturing. Plans include constructing a new facility in Houston, Texas, by 2026, to produce servers that were previously manufactured overseas. According to Apple, the site will create "thousands of jobs."

In total, Apple’s U.S. investments and projects are expected to generate 20,000 additional positions over the next four years.

Tim Cook, speaking in January, highlighted Apple’s recent financial milestones, including a record-breaking net profit of $36.3 billion in the first quarter of the company’s fiscal year. These results coincided with the launch of the iPhone 16 series, the first to feature Apple Intelligence, the company’s generative AI technology.

While Apple has been deliberate in its rollout of AI tools, trailing competitors like Google and Samsung, the debut of Apple Intelligence in June marked a significant step forward. The AI buzz, fueled by the release of ChatGPT in late 2022, has dominated the tech landscape, with the Cupertino-based firm now firmly positioning itself in the race.

Dan Ives, an analyst at Wedbush Securities, remarked on Cook’s leadership during this period of transition. "Tim Cook is 90% businessman and 10% politician. In moments like this, he uses his global relationships to ensure Apple navigates challenges, including Trump’s tariff threats," Ives noted. However, he dismissed speculation that Apple’s U.S. investments signal a departure from its reliance on Chinese manufacturing.

Apple’s announcement aligns with broader trade and economic measures from the Trump administration. The president has recently proposed new tariffs targeting a range of foreign products, particularly from China, including semiconductors, automobiles, and pharmaceuticals. These measures are designed to encourage American companies to relocate production back to the United States.

Additionally, on January 21, one day after his inauguration, Trump unveiled a new artificial intelligence initiative called "Stargate." The project involves investments of at least $500 billion in AI infrastructure within the U.S., with participation from SoftBank, Oracle, and OpenAI. However, the announcement has faced skepticism, including from Elon Musk, a Trump ally.

Apple’s historic investment underscores its commitment to the U.S. economy, even as geopolitical tensions and technological competition reshape the global business landscape.