Nvidia pledges to build up to $500 billion of US AI infrastructure amid chip tariffs
Get the latest news as Nvidia commits to building up to $500 billion worth of AI infrastructure in the US
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The latest news in artificial intelligence (AI) including research, releases and partnerships.
This week features:
- Nvidia to build up to $500 billion worth of AI infrastructure in the US
- OpenAI develops AI agent to replace software engineers
- Lloyds Banking Group accelerates AI innovation with Google Cloud
- Perplexity partners with Vespa.ai to bring search function in-house
- Managers less convinced that AI can replace human workers
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Nvidia to build up to $500 billion worth of AI infrastructure in the US
Nvidia plans to build up to US$500 billion worth of AI infrastructure in the US over the next four years amid President Trump’s ongoing tariffs push.
The announcement comes after Trump recently reiterated threats to impose imminent tariffs on the semiconductors that Nvidia makes mostly in Taiwan. It is a sign of manufacturers investing in operations on American soil over fears of the costs of outsourcing production and importing goods.
Production of Nvidia’s Blackwell graphics processing unit has already started in Phoenix, Arizona, Nvidia said. Construction of new plants is also under way with the manufacturers Foxconn in Houston and Wistron in Dallas. Mass production at both plants is expected to ramp up in the next 12 to 15 months.
Jensen Huang, CEO of Nvidia, stated that adding American manufacturing has helped the company “better meet the incredible and growing demand for AI chips and supercomputers.” Meanwhile, the White House said that Nvidia’s decision was “the Trump Effect in action.”
In an official filing late on Tuesday, Nvidia said it expects a $5.5 billion hit after Trump’s administration barred the chip designer from selling crucial AI chips in China.
Join us at All Access: AI in PEX 2025 as we explore the evolving AI landscape!
OpenAI develops AI agent to replace software engineers
OpenAI is building an AI agent that can do all the work of software engineers, not just augment their skills. That’s according to its chief financial officer (CFO) Sarah Friar.
Speaking at the recent Goldman Sachs conference in London, Friar said: “This is not just augmenting the current software engineers in your workforce, which is kind of what we can do today through Copilot, but instead, it’s literally an agentic software engineer that can build an app for you.”
Not only does the AI agent build, it does all the things that software engineers hate to do, such as quality assurance tests, bug testing and bashing, as well as the accompanying documentation, she added. “So suddenly, you can force multiply your software engineering workforce.”
This agentic software engineer is called “A-SWE” and represents the third phase of OpenAI’s development of agentic AI. Friar described the model as feeling “very human” and “actually better for things like design or writing or creative concepts, rather than just pure hard math and science.”
Watch Tyrone Smith Jr, program faculty member/adjunct associate professor at University of Southern California (USC), discuss prioritizing humanity in the age of AI
Lloyds Banking Group accelerates AI innovation with Google Cloud
Lloyds Banking Group has taken a significant step in its strategic transformation, leveraging the AI and data science capabilities of Google Cloud to transform customer and colleague experience. This transition is unlocking new opportunities to innovate, enhancing the Group’s ability to provide cutting-edge, personalized financial services, according to a press release.
Lloyds Banking Group is using data and AI to help its customers make better financial decisions, the firm stated. A crucial part of this transformation is building a new machine learning and generative AI platform using Google Cloud’s Vertex AI. This collaboration has revolutionized the Group’s ability to deploy impactful AI use cases at pace with over 300 data scientists and AI developers across the Group now using the platform.
Since deploying the new platform on Vertex AI, the Group has successfully initiated over 80 new machine learning use cases and launched over 18 generative AI systems into production, spanning its entire business. A further 12 generative AI systems are expected to go live by the end of June.
“Moving to Vertex AI has been transformative for us as a Group, providing us with the scalability and reliability to innovate with AI at pace,” said Ranil Boteju, group chief data and analytics officer at Lloyds Banking Group. “Vertex AI is enabling data scientists and AI developers across the Group to access generative AI solutions with consistent guardrails, as well as giving them the flexibility to use large language models (LLMs) from third parties and open-source providers, as well as Google’s Gemini model.”
Read about NatWest’s partnership with OpenAI to accelerate business transformation
Perplexity partners with Vespa.ai to bring search function in-house
Vespa.ai is partnering with Perplexity to bring its AI-powered answer engine feature in-house. The move will significantly enhance the speed, accuracy and relevance of search results at a scale only made possible on Vespa’s platform, according to the announcement.
The new project, which developers from both companies have been working on, is centered on Vespa’s capabilities to provide high-performance vector and text search, scalability, reliability and cost efficiency, the firms stated.
“We’re continually expanding Vespa’s capabilities to provide the flexibility, speed and reliability necessary to deliver best-in-class conversational experiences to millions of users worldwide and the project with Perplexity has allowed us to show just what the platform is capable of,” commented Jon Bratseth, CEO of Vespa.ai.
Managers less convinced that AI can replace human workers
Business managers are becoming less convinced that AI can (or should) replace human workers, according to a new report from Beautiful.ai. The firm surveyed 3,000 managers to explore the impact of AI on the workplace in 2025. It captured a notable shift in sentiment: managers are no longer viewing AI as a silver bullet for productivity. Many are focusing on balance, integration and real human value.
The survey found that 63 percent of managers believe their teams would not function well if employees were replaced by AI (a 20 percent jump from last year). Meanwhile, only 30 percent think replacing staff with AI would be financially beneficial, down 17 percent from 2024.
What’s more, 64 percent of respondents believe employees fear that AI tools will make them less valuable at work in 2025, with 44 percent worried that AI tools in the workplace will lead to a decline in management pay. Almost two-thirds (65 percent) of those polled said employee resistance to AI remains a top concern.
Watch thought leader Doug Shannon reflect on keeping people at the core of emerging technology
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