Apple Granted Reset on New Campus Deal

[MacRumors]

North Carolina has approved Apple's request to push back the hiring and investment milestones tied to its long-delayed Research Triangle Park campus, effectively restarting the incentive agreement that could be worth up to $845 million to the company, the Herald reports.

North Carolina's Economic Investment Committee voted this week to grant Apple a four-year extension on the timelines originally established when the company secured a rare "transformative" Job Investment Grant in 2021. The move follows Apple's confirmation last year that it had paused construction plans and was seeking to renegotiate the agreement with the state.

Under the original deal, Apple committed to invest $1 billion in North Carolina over a ten-year period, including $552 million for a new corporate campus in Research Triangle Park and $448 million to expand its data center footprint in Catawba County in exchange for up to $845 million in tax benefits if it met strict annual hiring and spending goals.

Apple has still not begun construction on the campus. In June last year, the company formally asked the state to suspend the project for up to four years, noting it had added around 600 employees in the Raleigh area since 2021 but required more time before beginning major development work.

Site plans filed in 2023 showed that Apple expected to build three office buildings, several support structures, and a car park totaling around 900,000 square feet. The latest vote enables Apple to delay hiring requirements until the end of 2027, by which time it will need to add 126 positions to remain eligible for incentives, rising to 1,719 by year five and 2,700 by year ten.

Apple previously said the campus will focus on machine learning, artificial intelligence, software engineering, and other related fields.

Article Link: Apple Granted Reset on New Campus Deal

 

[rufwork]

I think it’s styled The Herald. And it’s McClatchy, so it’s likely a story actually published by Brian Gordon at The News & Observer, which is Raleigh based, not The Herald, which is SC based (but is rerunning the story).

Not that they mind the traffic. 😉

 

[sw1tcher]

North Carolina has approved Apple's request to push back the hiring and investment milestones tied to its long-delayed Research Triangle Park campus, effectively restarting the incentive agreement that could be worth up to $845 million to the company.

First thought that comes to mind when reading this is what Foxconn pulled in Wisconsin.

 

[bmark]

So Apple is pulling out of this deal. Not a shocker since their AI ability is a joke!

 

[goonie4life9]

It’s really not that complex, folks. Apple made the deal and then at the very last minute, literally after they had hired 600 people and were about to break ground, Apple discovered the plan just wasn’t quite ready to delight customers. So, Apple had to pull the plan. Remember, Apple is a tiny startup with limited resources and they just couldn’t spare the resources while they were perfecting the ALL NEW OS 26, with the revolutionary Liquid Glass design language. Believe you me, nobody was more surprised by this than Apple. Fortunately, Apple discovered the secret and was able to take the plan to a whole new level. Rest assured, this new plan will truly be a game changer for the people of North Carolina.

 

[Der Keyser]

Also - small startups like this needs these large tax breaks (almost equalling the amount they commited to invest).
Without having the US tax payer financing the company expansion, they would seriously struggle financially.

 

[magicschoolbus]

Sounds like a slow pull out of the deal.

 

[dcingie]

No North Carolinians that value and appreciate the unique and breathtaking ecology of our state want to have our tax dollars used to bribe a multibillion dollar company to come further exacerbate the deforestation free-for-all that’s currently devastating our state. The only ones excited about this are those willing to destroy wildlife habitat in the pursuit of the almighty dollar. #saynotoapple

 

[t0rqx]

Sounds like every Apple coirtcases, where Apple ask the judges to dismiss the case, cause it only affects "a handful of users".

 

[svish]

Looks like construction might be even delayed. Plans might further change after four more years. Will be interesting to see what happens.

 

[IIGS User]

First thought that comes to mind when reading this is what Foxconn pulled in Wisconsin.

I was going to say, who does Apple think they are, Foxconn?

I picture Tim sitting at home with his iPhone and the ChatGPT App.

“Should I change the North Carolina deal”?

Yes. You should change the deal. Here’s why.

Tim: Hmm. I wonder what Siri would say.

“Hey Siri”…. “Hey Siri”…. “HEY SIRI”…. What should I do with the NC deal?

“I found this on the web for what should I do with The Fourth of July Meal. Check it out”.

 

[goonie4life9]

Sounds like every Apple coirtcases, where Apple ask the judges to dismiss the case, cause it only affects "a handful of users".

We’re not even to the handful stage yet. This LITERALLY only affects one state out of 50. Apple can’t be expected to DRASTICALLY change their plans for one single state!

 

[FloatingBones]

First thought that comes to mind when reading this is what Foxconn pulled in Wisconsin.

Explain how you think that first incident reminds you of the second.