How Trump's Tariffs Could Make AI Development More Expensive

Chips themselves, the key computing hardware inside AI datacenters, are exempt from Trump's tariffs--but only if they are imported to the U.S. as standalone products. However, most chips are not imported into the U.S. as raw materials; instead, they arrive already-packaged inside products like servers, which are subject to tariffs. 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. That's because most appear to be assembled in Mexico, and therefore benefit from a tariff exemption under a free trade agreement. That's a "silver lining" to the news, says Rasgon, a semiconductor industry analyst at Bernstein Research.