Biden touts new Microsoft AI center on site of Trump’s failed Foxconn deal
Biden touts new Microsoft AI center on site of Trump’s failed Foxconn deal
President Biden will champion a new Microsoft artificial intelligence investment in Wisconsin on Wednesday — showcasing the failed economic commitments of his political rival Donald Trump, whose promises for a key Foxconn plant in the battleground state never materialized.
The president will appear in Racine, Wis., at the site of the failed Foxconn manufacturing campus, to announce Microsoft’s $3.3 billion investment in data centers to fuel its ambitions to build powerful AI systems, according to the White House. The investment is expected to create 2,000 permanent jobs and 2,300 temporary union construction jobs, and the company says it will also invest in workforce training programs in the state.
The White House is pitching the appearance as part of Biden’s “Investing in America” strategy, as he seeks to draw a sharp contrast with his predecessor, who spent Tuesday posting angry messages on social media about developments in his criminal trial for allegedly falsifying business records to conceal hush money payments to adult-film actress Stormy Daniels.
The trip marks Biden’s fourth visit this year to the key swing state of Wisconsin, where he narrowly defeated Trump in 2020.
In 2018, when Foxconn, at Trump’s urging, announced plans to create 13,000 good-paying jobs at a new site in Wisconsin, Trump celebrated the company’s $10 billion venture as “the eighth wonder of the world.” But the project accomplished little more than the destruction of scores of local homes and farms before the company drastically scaled back its ambitions.
In September 2020, Wisconsin state officials denied the Taiwanese company special tax credits, saying it had abandoned its original commitment, employed fewer than 520 people and spent just $300 million.
Local taxpayers were left with a tab of more than $500 million for site preparation.
For Biden, the Microsoft announcement represents evidence that his embrace of industrial policy — the use of government money and dictates to shape the economy — is paying dividends. The president steered three major pieces of legislation through Congress that will pump trillions of dollars into modernizing the nation’s roads, bridges, ports and internet connections; subsidize development of clean energy technologies; and fund domestic production of advanced semiconductors.
Private companies so far have committed to spending $866 billion on related ventures, according to the White House. More than $537 billion in public spending has been announced, with more to come.
The administration is directing a significant chunk of its industrial policy spending to manufacturing-dependent communities that were hit hard by competition from inexpensive Chinese imports in the 2000s.
Wednesday’s announcement comes as Microsoft aggressively invests in expanding its footprint in AI development, pouring billions into deals that will cement its place as a key partner for leading AI companies in the United States, Europe and Asia.
The company — which was battered by antitrust scrutiny throughout the 1990s — has emerged as one of the most sophisticated tech lobbyists in Washington, and it is increasingly seeking to shape the future of AI regulation.
Microsoft President Brad Smith, a Wisconsin native, is expected to appear beside Biden at Wednesday’s announcement, as the White House has committed to aggressively pursue AI regulation. As part of its investment in Racine, Microsoft will partner with Gateway Technical College to develop a program that will train residents for data center and other technical careers. The company is also building a “Co-Innovation Lab” in southeast Wisconsin to promote Ai innovation in the region.