Tech titans pledge hundreds of billions to US, but will they deliver?

In his ‘Liberation Day’ address, President Donald Trump declared that major corporations are pouring money into the United States, crediting his administration’s economic policies for an unprecedented wave of investment.“This is a company that built its factories and its plants in China — Apple is going to spend $500 billion (they never spent money like that here), they’re going to build their plants here,” Trump announced. He went on to name SoftBank, OpenAI, Oracle, Nvidia, and Taiwan’s TSMC as part of a growing list of firms pledging massive investments in the country. According to Trump, these commitments total more than $1.6 trillion and promise hundreds of thousands of jobs.
However, historical trends suggest that such pledges do not always translate into real, long-term investments.
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Since Trump’s re-election, business leaders have lined up to pledge substantial investments in the US. SoftBank’s Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison announced a joint $500 billion initiative in AI infrastructure. Apple has promised to invest $500 billion, while TSMC claims it will spend $200 billion to shift chip production to American soil. Pharmaceutical giants like Johnson & Johnson and Eli Lilly have also committed billions.

Yet, if history is any indication, many of these figures may be more aspirational than realistic.

During Trump’s first term, similar commitments were made, with mixed results. Automakers, for instance, announced large US investments under Trump’s pressure but later downsized or shifted priorities. Ford Motor Co. promised a $700 million investment in a Michigan factory but ultimately cut jobs instead of adding them. Taiwan-based Foxconn vowed a $10 billion facility in Wisconsin—hailed by Trump as the “Eighth Wonder of the World”—but years later, it had only invested a fraction of that amount and hired far fewer workers than promised.

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Even tech and AI infrastructure projects, which are central to these new pledges, may not create as many permanent jobs as Trump suggests. While OpenAI, SoftBank, and Oracle claim their investments will generate “hundreds of thousands” of jobs, much of that figure includes temporary construction roles rather than long-term employment opportunities. Data centres, in particular, require minimal human labour to operate.

Economic Uncertainty and Political Strategy

The timing of these investment pledges aligns with Trump’s broader economic and political strategy. Facing stock market volatility, inflation fears, and concerns about a recession, the administration has pushed the narrative that corporate America is backing Trump’s policies. His recent tariffs, meant to incentivise domestic production, have further pressured multinational firms to make high-profile US investment commitments.

However, economists warn that pledges do not always translate into action. Many of these investments were in the works under previous administrations, and some may be repackaged announcements of existing plans.

While Trump’s approach may accelerate certain projects, how much of the promised $1.6 trillion will truly materialise remains to be seen.

Also Read: China halts US-bound investments amid trade tensions, adding uncertainty for firms