Companies

SoftBank's $100 Billion Investment Pledge in the U.S.

Published December 17, 2024

SoftBank's CEO, Masayoshi Son, has announced an ambitious plan to invest $100 billion in the United States over the next four years. This investment is expected to create at least 100,000 jobs across the nation.

Son made this significant pledge during an event with president-elect Donald Trump, who described the investment as an "historic commitment" that reflects strong confidence in America’s future. Trump emphasized that this funding will foster the development of artificial intelligence, emerging technologies, and various future industries in the U.S.

This is not the first time that Son has revealed major investment initiatives for the U.S. In Trump's first term, he had promised to invest $50 billion. Now, as Trump heads into his second term, Son is effectively "doubling down" on this pledge.

Additionally, Trump humorously suggested that SoftBank might consider raising the investment amount to $200 billion. In light of this, Son responded by saying he would "try to make it happen." However, Son did not provide specific details about how this new investment will be structured.

Trump's focus on artificial intelligence hints at SoftBank's interests, as the company aims to be a key player in the rapidly growing AI sector. SoftBank has a history of investing heavily in technology firms, most notably taking British chip designer Arm Holdings private in 2016 before reinvesting in its public listing on NASDAQ in 2023.

At a recent event, Son claimed that the technological 'singularity'—a point where technological growth becomes uncontrollable and irreversible—is approaching, forecasting that artificial general intelligence may emerge within the next decade, with Arm being instrumental in this advancement.

SoftBank's investments are not limited to the U.S.; earlier this year, it acquired another British chip firm, Graphcore, intending to create a $100 billion AI chip powerhouse that can rival Nvidia.

In November, SoftBank announced its plans to build Japan's most powerful AI supercomputer using the latest technologies from Nvidia, while also investing $1.5 billion in AI model builder OpenAI.

The new wave of investments in the U.S. could also include significant funding for constructing large AI data centers. Over the past year, companies focusing on GPU-based computing have received substantial financing to build facilities equipped with many accelerators, anticipating high returns. As reported in related discussions, the return on investment from these facilities has been around 3.5 times.

Despite these promising ventures, it is important to note that not all of SoftBank's investments have been successful. A notable example is the situation with WeWork, in which SoftBank invested billions but the company filed for Chapter 11 bankruptcy just over a year ago. Thus, while Son's $100 billion investment could potentially create new job opportunities, the outcomes are uncertain and not guaranteed.

SoftBank, Investment, Jobs