In a significant boost to the US economy, SoftBank Group CEO Masayoshi Son announced plans to invest $100 billion over the next four years during a meeting with President-elect Donald Trump. The investment will focus on artificial intelligence (AI) and supporting infrastructure, with the goal of creating 100,000 jobs before the end of Trump’s upcoming term.
Monumental confidence in America’s future
Trump, speaking alongside Son at his Mar-a-Lago club in Florida, hailed the announcement as a testament to the “monumental confidence in America’s future.” Playfully, he encouraged Son to double the commitment to $200 billion, to which Son responded with a chuckle, promising to “try.”
The announcement aligns with Trump’s pledge to bolster the US economy during his second term, which begins on January 20. Trump referred to Son as “one of the most accomplished business leaders of our time.”
Echoes of a previous pledge
This isn’t the first time Son has made such a commitment. In December 2016, shortly after Trump’s initial election victory, Son pledged $50 billion in investment and the creation of 50,000 jobs. While the funds were eventually deployed, questions remain over whether the job creation target was met.
The new $100 billion investment comes at a time when SoftBank has been actively rebuilding its finances following setbacks, including the failure of WeWork and declining investor interest in some Vision Fund-backed companies.
AI: The core of the investment strategy
SoftBank’s renewed focus on artificial intelligence reflects Son’s long-term vision for technological advancement. The funding may be sourced from SoftBank’s Vision Fund, capital projects, or its chip design company, Arm Holdings. Son has been vocal about the transformative potential of AI, even describing the pursuit of artificial superintelligence as requiring hundreds of billions of dollars in investment.
“AI will be the driver of the next industrial revolution,” Son stated earlier, emphasizing its importance in shaping future economies.
Challenges and opportunities
SoftBank’s ability to fund the new commitment will depend on its current financial strategy. As of September 30, the company reported $29 billion in cash reserves. The announcement follows Trump’s promise to expedite permitting for companies investing over $1 billion in the United States, signaling a favorable environment for such large-scale investments.
A strategic partnership
While critics point to the mixed outcomes of similar announcements, such as Foxconn’s largely unrealized $10 billion Wisconsin project, the SoftBank deal highlights the growing emphasis on AI and its role in future job creation.
[…] as the on-going tensions in the Middle-East. While Trump’s election saw people polarised, Soft Bank pledged an investment of $100 Billion and 100K AI Jobs in the US. While on the other hand, the […]