Artificial intelligence (AI) is not going away. In fact, it’s just getting started. But if you’re a small business owner or entrepreneur watching headlines about trade wars, tariffs, and the rising cost of computer chips—you’re not wrong to feel a little uneasy.

Last week, the Motley Fool published an insightful article, “Don’t Worry, AI Investors, the Artificial Intelligence Boom Is Still on – But There Are Rising Dangers for Nvidia.” The takeaway? Big tech is still investing in AI, but Nvidia—the current king of AI chips—is facing heat. And behind the headlines, something deeper is brewing: a geopolitical standoff that could ripple into every industry, from cloud computing to the phone in your hand. Let’s look at this from a business coach’s perspective—what’s happening, who’s involved, and why it matters for you.

Chips Power the AI World—And They’re Mostly Made Overseas

Every major tech company—Amazon, Google, Microsoft, Meta, Apple—relies on chips to power their cloud services, apps, devices, and increasingly, their AI tools. Whether it’s Amazon Web Services training massive language models, or your iPhone optimizing photos with on-device machine learning, those capabilities run on high-performance chips.

But here’s the catch: the majority of these chips are not made in the United States.

About 90% of the world’s most advanced semiconductor chips are manufactured in Taiwan, with Taiwan Semiconductor Manufacturing Company (TSMC) leading the charge. Nvidia designs its chips in the U.S., but manufacturing is outsourced to TSMC. That means most of the brains behind our AI tools are fabricated across the Pacific.

That’s where tariffs and trade policy come into play.

Tariff Threats and the Ripple Effect to Your Pocket

The Trump administration’s tariff threats have already rattled the markets in early 2025. And while some tariffs have been dialed back, the damage has been done: uncertainty has crept into the most foundational supply chain of the digital economy.

Here’s how that affects you, whether you run a small service firm, an e-commerce store, or a startup:

• Rising costs on cloud tools: If tariffs or conflicts limit chip supply or increase chip costs, expect cloud providers like AWS and Google Cloud to pass those costs on to customers.
• Device price hikes: Your next laptop, phone, or tablet could get more expensive—or lag behind in performance.
• Delayed innovation: AI tools that were becoming more accessible to small businesses may stall in rollout or come at a premium price.

Can the U.S. Start Making Chips Domestically?

Yes—but it’s not as simple as flipping a switch.

As of early 2025, only about 12% of the world’s semiconductors are made in the U.S., and most of those are not the cutting-edge chips needed for AI. The most advanced chips are still overwhelmingly produced in Asia.

Enter the CHIPS and Science Act, passed in 2022. This law allocated $52 billion in subsidies and incentives to build out U.S.-based semiconductor fabs. The goal? To bring chipmaking home and reduce dependency on foreign suppliers.

Here’s what’s happening:

• Intel is building a massive $20 billion fab in Ohio.
• TSMC is constructing a fab in Arizona—with hopes to begin production in 2026.
• Samsung is also building in Texas.

These projects will create jobs, but not as many as you think. Why? Because chip manufacturing is heavily automated. Robots, not humans, will do most of the work. Still, estimates say up to 40,000 to 50,000 direct and indirect jobs could be created once fabs are fully operational.

But here’s the timeline: Don’t expect full-scale U.S. chip production before 2026 or 2027, and even then, global integration will still be necessary. The road to full independence will take at least a decade.

Is the AI Boom Cooling Off? Or Is It Just Rebalancing?

The AI trend isn’t over. It’s evolving.

Tariff wars with China, global supply chain risks, and rising infrastructure costs will likely force companies to optimize, not abandon, AI. That means:

• More in-house chip development (like Google’s Ironwood or Amazon’s Trainium)
• Pressure to lower AI compute costs
• Focus on AI that delivers immediate ROI—not just hype

For small businesses, that’s not necessarily a bad thing. We don’t need to train billion-parameter models from scratch. What we need is access to AI tools that save time, cut costs, and boost customer engagement.

And those tools—Synthesia , Squibler , Fireflies AI , Best  E-commerce Build platform-Elementor, Hubspot—are still growing.

What Does This Mean for You as a Business Owner?

1. Watch pricing trends. If you rely on cloud tools, start monitoring service pricing and look for alternate providers with flat or long-term contracts.
2. Optimize your AI use. Don’t just use AI because it’s trendy. Identify areas where it truly creates efficiency—content creation, automation, customer service, forecasting.
3. Stay informed on supply chain news. You don’t have to be a tech expert, but being aware of chip supply risks can help you prepare for device replacements, software changes, and pricing shifts.
4. Double down on human advantage. As AI and automation rise, your creativity, empathy, and leadership will become your most valuable currency.

The AI boom hasn’t burst—it’s simply moving into its next phase. One where cost, efficiency, and geopolitics shape what’s possible.

As business owners, we need to adapt—not panic.

If you’re part of the 360 Business Coach community, expect ongoing updates and coaching around how to practically use AI in your business without being dependent on complex, costly infrastructure. Whether you’re building a brand, managing a team, or automating your workflow, AI is still on your side.

Just remember: the chips may be in China, but your power is in your strategy.

Stay informed. Stay nimble. And keep building.

Want help integrating AI without wasting time or money? Join the 360 Business Coach Membership and get tools, insights, and exercises designed for real-world small business growth.