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SHERMAN (AP) — Jensen Huang’s company Nvidia makes the computer chips that unleashed a revolution in artificial intelligence. Now he’s wagering that an AI buildout can revive U.S. manufacturing, pushing past limits facing science and society.

That vision might hinge on a factory groundbreaking an hour north of Dallas.

Nvidia is formally unveiling on Tuesday plans for a major upgrade to its AI infrastructure as part of its $2 billion partnership with the factory’s owner, Coherent. The factory will produce the material for a laser to transmit data among computer chips, allowing those chips to work as a single system with more power, speed and efficiency, according to executives who discussed the technology before the public announcement.

“AI factories are the infrastructure of the new industrial revolution,” Huang said in a statement.

The factory represents a fundamental test of whether, as Huang believes, AI will be a source of job creation instead of a technology that supplants workers as it becomes possible to write software, analyze a spreadsheet, run an assembly line or even drive an automobile without much human effort.

Huang has led Nvidia as it became the world’s most valuable company, worth roughly $5 trillion, to a point where it’s looking beyond chips to developing entire AI systems. The companies expected to rely on those systems to further develop AI models could soon join the elite circle of those with a valuation of more than $1 trillion. Just how that wealth spreads and the consequences of the technology have rapidly evolved into fundamental debates about how America itself is structured.

AI is powering academic breakthroughs and it creates the promise of rapid economic growth. But even if stocks are buoyed by those possibilities, there are voters who see reasons for concern over its use of electricity, the potential for job losses and the newfound national security risks.

A shifting approach on AI

President Donald Trump’s administration, which once saw a light regulatory touch as essential for fostering AI’s development, has recently begun to reverse course. It placed export controls on the AI company Anthropic’s latest models, leading the company on Friday to shutter all public access to those models over security concerns.

Trump, a Republican, signed an order to have new AI models voluntarily vetted by the government. He has also mused about the government owning a stake in the companies that develop AI, so that the public could benefit from the expected windfall even if that would blur the lines between the public and private sectors.

Still, Trump depends on the AI boom to fuel economic growth, drive future gains in manufacturing and construction, and push the stock market to new heights. He has insisted on Huang accompanying him on foreign trips, most recently having Air Force One pick up the leather-jacketed CEO in Alaska while en route for the state visit to China.

Trump has called Huang “smart,” a “friend” and “amazing” — and he’s publicly recounted that he once mused about breaking up Nvidia because of its dominance, only to admit that Huang was someone that he needed as an ally.

“We are proud to have you in our country,” Trump told the Taiwanese immigrant last year.

AI buildout creating jobs

Coherent’s factory in Sherman, Texas — which includes Nvidia as a major customer — relied on bipartisan government support. The Biden administration approved $33 million in backing from the CHIPS and Science Act to help fund its buildout, while the Trump administration provided an additional $17 million grant to help ensure a key part of the AI infrastructure would be made in America.

Including construction workers, Coherent estimates that the factory will create 1,000 jobs, with about 550 of them in advanced manufacturing, engineering and technical roles.

The factory expansion will increase production of Indium Phosphide, which is used to make a laser that has the optical intensity of the surface of the Sun. Each second, the light pulses a few hundred billion times through a fiberglass straw the width of a human hair. That allows Nvidia’s computer chips to share information and work together as one system in what Huang has dubbed “AI factories.”

Power consumption would be cut up to 50%, enabling computations to occur faster and at a drastically lower price. The prospect of reducing the cost of tokens — the industry’s term for AI usage — would make it easier for AI to expand its reach and abilities.

“This investment expands America’s capacity to manufacture critical AI-enabling technologies, creates high-value jobs, and reinforces U.S. leadership in advanced manufacturing, photonics, and innovation,” said Coherent CEO Jim Anderson in a statement.

In a paper published this month, the economists Jessica Wachter and Jonathan Wachter noted that the five largest U.S. technology firms invested $380 billion last year as part of the AI buildout and that sum could roughly double this year. Based on that investment, they estimate the possibility of rapid economic growth as AI accounts for more of U.S. gross domestic product. While AI is roughly 3% of the economy now, that figure could grow to a range of 8% to 39%.

One Nvidia executive, who insisted on speaking on background to describe its industrial strategy, stressed that the company was moving from developing computer chips to providing entire AI systems. That has meant clustering more production in the U.S. with chipmaking increasingly centered in Arizona and the assembly process increasingly located in Texas, so that there is a reliable domestic supply chain.

The executive said that Nvidia was selling brains and a nervous system to its customers, so that the intelligence generated can then be applied to their businesses in ways that create new products and identify new savings and business lines. That could allow manufacturers that depend on foreign suppliers to restore production in the U.S., taking an AI that so far has largely been accessed on laptops onto factory floors where it can, in their words, “move atoms.”

The possibility has not been lost on Trump, who sees the industry as essential to American greatness.

“It’s an amazing industry,” Trump said to reporters last week. “It’s bigger than any industry anyone’s ever seen. We are leading China by a lot. And whoever leads that is going to really lead the world to a large extent, that’s how big it is.”

Update: KTBB talked to the City of Nacodoches Wednesday night. They felt comfortable of the main being patched up by Thursday evening.

NACOGDOCHES – A major roadway is currently closed down following a sewer main collapse on Monday afternoon.

According to the City of Nacogdoches and our news partner KETK, the sewer main on West Spradley Street collapsed after excessive rainfall in the area. Crews are expected to begin working to repair the sewer main once conditions allow, and the street will remain closed to traffic until further notice.

Due to the closure, residents are asked to enter and exit the neighborhood at the intersection of South Loop 224 and Old Lufkin Road. An entrance can also be made to the street at the intersection of Old Lufkin Road and U.S. 59 South.

KTBB talked to the City of Nacodoches Wednesday night. They felt comfortable of the main being patched up by Thursday evening.

AUSTIN – Governor Greg Abbott announced on Monday that he issued a disaster declaration for 101 Texas counties as severe storms continued to threaten the state. Additional counties may be added as conditions warrant, according to the governor’s office.

“Texas is prepared to respond to the severe weather threats that continue to move across our state,” said Governor Abbott. “Because of the impact caused by ongoing storms and flood risks, I have issued a disaster declaration for 101 Texas counties to ensure that local officials and communities have access to the full range of state resources and support. Texans should heed the guidance of state and local officials and take all necessary precautions to stay safe during this severe weather.”

Earlier Monday, Abbott directed the Texas Division of Emergency Management (TDEM) to activate additional state emergency response resources and implement 24-hour operations at the Texas State Emergency Operations Center as storm risks persist. Last week, the Governor directed TDEM to activate state emergency response resources ahead of the flood threat.

Texans are urged to continue monitoring local weather forecast information and have emergency supplies readily available. As storm threats continue, Texans are urged to stay informed, avoid driving through flooded roadways, and heed all warnings from local officials. Texans can find severe weather safety information and road conditions here and find all hazards preparedness tips here.

 

NACOGDOCHES (KETK) — More students have enrolled for summer classes at Stephen F. Austin State University (SFASU) this year than in the past, continuing a growing trend and marking one of the largest summer enrollment gains in recent institution history.

According to SFA, the summer 2026 semester headcount is currently up 6% from last year with semester credit hours increasing 7%, even while enrollment remains open.

“Students are increasingly choosing SFA because they recognize the value of a degree that combines academic quality, personalized support and strong career outcomes,” SFA President Neal Weaver, Ph.D., said. “These preliminary summer numbers build on the momentum we experienced throughout the past academic year and reflect the confidence students and families have in the direction of this university.”

The increased credit hours, SFA said, plays an important role in state funding as they show student engagement. An increase reflects student demand and the institution’s efforts to create flexible degree completion pathways, Senior Vice President for Enrollment and Student Engagement Kent Willis said.

“Summer enrollment provides students with an opportunity to stay on track, accelerate their progress toward graduation and take advantage of flexible course options,” Willis said. “We’re seeing strong participation from continuing students and transfer students who are using the summer term to move forward academically.”

Classes begin July 6 and with registration still open, students can enroll in a variety of summer courses to help lighten class loads during other semesters.

“I was able to knock out two core classes online while working part time,” junior and kinesiology major Billy Stewart said. “It’s helping me graduate on time and save money.”

SHERMAN – An illegal alien, living in Dallas, has been sentenced to more than 22 years in federal prison as part of a Homeland Security Task Force investigation for trafficking methamphetamine in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.

Juan Lopez-Carmona, 32, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 270 months in federal prison by U.S. District Judge Amos L. Mazzant on June 15, 2026.

According to information presented in court, in 2021, federal law enforcement began investigating a drug trafficking organization that was responsible for moving large amounts of illegal narcotics from Mexico into the United States for redistribution. On October 4, 2022, while federal agents attempted to execute a search warrant at a Dallas residence, Lopez-Carmona, a Mexican national illegally living in Dallas, began firing on them from inside the house before fleeing on foot. Lopez-Carmona and another individual were quickly detained and a search of the residence revealed over 30 kilograms of methamphetamine, four firearms, and other drug trafficking supplies. The investigation resulted in multiple seizures of methamphetamine, cocaine, fentanyl, heroin, firearms, and large amounts of U.S. currency.

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion.

NACOGDOCHES – After attempting to escape from police, resisting arrest, and injuring an officer during a struggle, a man from Nacogdoches was taken into custody on Saturday night. Around 9:05 p.m., officers tried to pull over Jakelin Greer, 37, who was riding a bicycle close to the 1300 block of Meisenheimer Street, according to Nacogdoches Police Sgt. Brent Ayres. Before crashing and continuing to run on foot, Greer is said to have fled on the bicycle. According to the police, Greer resisted their attempts to arrest him, leading to a struggle in which one officer was hurt. After receiving treatment at a nearby hospital, the officer was discharged. Greer was discovered in possession of several controlled substances, including marijuana and other suspected drugs, according to investigators. Greer was accused of assaulting a peace officer, resisting arrest, evading arrest, possessing marijuana, and possessing a controlled substance. An investigation is ongoing.

SABINE COUNTY (KETK) – Former Sabine County Sheriff Thomas Raymond Philips was buried in Beaumont on Saturday, after he died at the age of 81 earlier this month.

Philips was born in Beaumont but moved to the Toledo Bend Lake area with his wife in 1977. They operated a mom-and-pop store there before he started his career with the Sabine County Sheriff’s Office in 1989.

Before he was elected as sheriff in Jan. 1997, Philips served with the sheriff’s office as a dispatcher, jailer, chief jailer, deputy sheriff and with K-9 Chico as the county’s first K-9 officer.
Former Sabine County Sheriff Thomas Raymond Philips. Photo courtesy of the Sabine County Sheriff’s Office.

Philips served as sheriff of Sabine County from Jan. 1997 and Dec. 2000. Philips continued working for another 16 years until he retired as a court security officer at the Jack Brooks Federal Building in Beaumont in 2016.

He passed away at 81-years-old at the Parkview on Hollybrook senior community in Longview on June 4. Current Sabine County Sheriff George Griffith and many other law enforcement members helped escort Philips’ coffin to Forest Lawn Cemetery on Saturday.

CROCKETT – Four people were shot and two people were hit by a vehicle after violence erupted at a large event in Crockett on Saturday night, according to Crockett police and our news partner, KETK.

Police said officers responded to reports of gunshots fired in the area of the 1100 block of Martin Luther King Jr. Boulevard at around 10:20 p.m. on Saturday.

Crockett Police Department officers, Houston County Sheriff’s Office deputies, EMS units and troopers from the Texas Department of Public Safety all responded to the scene of a “large event” where Crockett PD said a “significant” number of people and vehicles were gathered when gunshots rang out.

Officials learned that at least four people were shot at the scene and that at least two other people had been hit by a vehicle. All six people have been taken to a hospital for treatment.

Crockett PD is currently investigating, and they believe any suspects have fled the area. Anyone with information is asked to contact Detective Caleb Newsome at 936-544-2862 or by email at newsomec@crocketttexas.org.