President Trump's recently announced tariffs on foreign trading partners are causing concern for AI companies, as they heavily rely on imported equipment for datacenters. Analysts warn that these tariffs will escalate costs significantly, particularly for AI servers and supporting infrastructure, many of which are imported. However, there is a silver lining for companies like Nvidia, as a significant portion of their servers are assembled in Mexico, thereby exempt from tariffs. Workarounds to mitigate the impact of these tariffs are being explored to ensure continued investment in AI infrastructure.
The tariffs will make building AI datacenters much more expensive, both because AI servers are largely imported and will face tariffs, at least until supply chains can be rejigged.
I think there are some workarounds to avoid massive tariffs on AI infrastructure in the U.S., which is good because otherwise what's the whole point of this?
Worried AI investors received good news on Monday in a note circulated by analyst Stacy Rasgon, who pointed out that most Nvidia servers are likely to escape the bite of Trump's tariffs.
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