Nvidia revealed plans to upgrade a new chip factory in Texas on Tuesday, according to the Associated Press.

Nvidia expects power consumption to be cut by 50% at its new location, dramatically increasing operational efficiency. Factory owner Coherent estimates that the facility will create 1,000 jobs. (RELATED: US State To Get Billions In Foreign Investment For New Chip Factory: REPORT)

“AI factories are the infrastructure of the new industrial revolution,” Nvidia CEO and Founder Jensen Huang said.

Nvidia CEO Jensen Huang (R) shakes hands with US President Donald Trump as they speak about investing in America, at the White Hhas ouse in Washington, DC, on April 30, 2025. (Photo by Jim WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)

“Computing has fundamentally changed. In the age of AI, software runs on intelligence with tokens generated in real time by AI factories for every interaction and every context,” Huang previously said. “With Coherent, NVIDIA is pioneering next-generation silicon photonics to enable AI infrastructure at unprecedented scale, speed and energy efficiency.”

“We are proud to have you in our country,” Trump said to Huang. Sectors involved with the AI industry constituted 37% of GDP growth the US experienced in the first three quarters of 2025 according to the Federal Reserve Bank of St. Louis.

China, the U.S.’ chief AI competitor, is investing $295 billion into building data centers over the next five years.

“Whoever leads [the AI Industry] is going to really lead the world to a large extent,” Trump said. “We are leading China by a lot.”

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