MW Forget Stargate. Apple now has its own $500 billion investment plan.

By Emily Bary

Apple is matching the amount of the Stargate AI joint venture - and building goodwill with the new administration in a familiar approach

Apple Inc. isn't one of the technology companies involved in the Stargate joint venture that's pouring hundreds of billions of dollars into U.S. artificial-intelligence infrastructure, but the company has a domestic-investment plan of its own.

Two things ring familiar in Apple's $(AAPL)$ latest announcement. For one, the $500 billion investment commitment matches the pledged amount of the Stargate initiative, through which companies like SoftBank Group Corp. (JP:9984) and Oracle Corp. $(ORCL)$ are working on building out data-center infrastructure.

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Apple pledged to invest that much on its own over the next four years through efforts like growing its Advanced Manufacturing Fund, which goes toward projects with partners, and opening a new facility in Texas to support its AI software. The company also plans to hire about 20,000 people broadly over the four-year span.

"Previously manufactured outside the U.S., the servers that will soon be assembled in Houston play a key role in powering Apple Intelligence," Apple said in a press release.

The second familiar element is the timing of the announcement, early in a new presidential administration. Apple announced back in April 2021, toward the start of the Biden administration, that it was committing $430 billion over five years for things like a new North Carolina campus and "dozens of Apple TV+ productions." Now the company is back with a fresh announcement shortly after President Trump has entered the White House, and following a meeting with the president that took place last week.

Trump upstaged Apple's official announcement in a way, saying last week in a conversation with governors that the company would be investing "hundreds of billions of dollars."

Wedbush analyst Daniel Ives called Apple's announcement "a strategic move by Cook & Co. to continue diversifying its manufacturing strategy in both the U.S. and globally while also playing well into Trump's U.S. investment theme."

He added that Cook has proven himself "10% politician and 90% CEO," which is important at a time when Apple's business faces risk from tariffs.

Read: Apple may have to raise prices of the iPhone to offset tariffs, says BofA

"We do not view this as a signal that Apple is tweaking its China manufacturing buildout as these initiatives are not areas [Apple] focuses on for its China region," Ives wrote in his note to clients.

See also: Alibaba's stock falls on expensive AI-investment pledge

-Emily Bary

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February 24, 2025 07:36 ET (12:36 GMT)

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