Nvidia (NVDA, Financials), a maker of AI chips, is expanding its U.S. manufacturing footprint, after supplier Wistron opened its first American AI server factory in Fort Worth, Texas.
The plant, covering 324,000 square feet, will build servers using Nvidia's Grace Blackwell Ultra platform and is slated to construct systems using the company's next-generation Vera Rubin Superchips. The initiative is part of a $700 million effort to help grow sophisticated manufacturing in the United States.
Nvidia said output would ramp up quickly, with the factory able to produce tens of thousands of AI server boards each month later this year.
The new site is another move in Nvidia's effort to move more of its AI supply chain closer to customers as demand for computing infrastructure continues to skyrocket. Cloud providers and enterprise customers are pouring billions into data centers to fuel generative AI and other advanced workloads.
The Texas plant is also part of Nvidia's broader effort to produce up to $500 billion worth of AI platforms in the United States. The company is collaborating with production partners including Wistron, Taiwan Semiconductor production and Foxconn to increase local capacity.
Investors will look to see if faster production helps Nvidia keep pace with demand and ease supply constraints in the AI market.