TSMC announced plans to invest over $100 billion in expanding its U.S. chip manufacturing operations, including three new chip plants, two packaging facilities, and an R&D center in Arizona. The significant expansion was announced jointly by TSMC CEO C.C. Wei and President Trump at the White House.
Apple announced plans to create 20,000 new US jobs and invest $500 billion domestically over four years, including AI server production in Texas. The announcement follows a meeting between CEO Tim Cook and President Trump amid ongoing concerns about Chinese tariffs.
Recent developments suggest that the scaling hypothesis in AI - investing massive resources in data and GPUs to achieve artificial general intelligence - is hitting significant limitations. Major tech companies and investors are acknowledging diminishing returns from pure scaling approaches, with persistent issues like hallucinations and unreliability remaining unsolved. A market correction appears likely as the industry grapples with sustainability concerns and the need for new innovative approaches.
Vice President JD Vance emphasized US dominance in AI technology while refusing to sign an international AI safety declaration at the Paris summit, highlighting growing US-China competition in the sector. Europe announced 200 billion euros in AI investments as it seeks to establish independence from both US and Chinese technology.