SoftBank-The technology company intends to invest $100 billion in U.S. projects, reminiscent of its multibillion-dollar commitment following Donald J. Trump’s first election win in 2016.
KEY POINTS
- SoftBank’s $100 Billion Investment: SoftBank, a Japanese technology company, pledged to invest $100 billion in U.S. projects, focusing on technology and artificial intelligence over the next four years, with the aim of creating 100,000 jobs.
- Historical Context: This investment follows a $50 billion commitment made by SoftBank after Donald Trump’s 2016 election victory, which funded startups like WeWork and Zume, with mixed success.
- Trump and Masayoshi Son Interaction: During the news conference, Donald Trump, at his Mar-a-Lago estate, challenged SoftBank CEO Masayoshi Son to increase the investment, highlighting Trump’s negotiation style, though Mr. Son did not make further commitments.
Since the election the president elect, Donald J. Trump had his first press conference covering several topics. The event commenced with a notable announcement: Softbank, a Japanese founded technology firm said it is to invest $100 billion in the United States.
At the conference held at Mar-a-Lago, his residence, Mr. Trump was beside SoftBank’s CEO, Masayoshi Son as the company made pledge that was similar to the $50 billion investment it promised following his victory in 2016 election. It resulted in funding to so many starting startups where some were able to grow while others experienced a rough time, for instance WeWork a co-working firm and Zume the robotic pizza firm.
The investment, Mr. Trump mentioned, is expected to create 100000 jobs. Officials from the transitioning government averred that out of this investment, technology and artificial intelligence will be invested on over the next four years.
In the course of the news conference, Mr. Trump urged Mr. Son to raise the stakes, implying that he could easily do so Himself Mr. Son did not commit to anything but recognized Mr. Trump’s skills as a negotiator.
As we know SoftBank is not funded $100 billion in liquid assets. These expected funds are expected to be from balance sheet as well as the capital raised with partners, according to a source privy to the SoftBank’s plan.
SoftBank’s founder and chief executive, Masayoshi Son, is 67 years old He set up SoftBank in Tokyo in 1981 and has since nurtured it into a leading technology investment company. The firm is known for many great achievements and dramatic failures Indeed, Mr. Son who is called Masa has become a focus of media attention with his many statements, attempts to attract funds and acquisitions.
Among those observers was Mr. Son, who in December of 2016 pledged to invest $50 billion in the United States before the first inauguration of Mr. Trump, claiming that the investment would create as many as 50,000 jobs. This was said closely after he announced plans to establish SoftBank’s Vision Fund, a $100 billion fund whose purpose is to invest in technology companies globally, $50 billion of which will be provided by Saudi Arabia.
By way of this fund, Mr. Son became one of the biggest backers of Silicon Valley’s technology startups such as Uber, and DoorDash.
The exact number of jobs created by SoftBank as a result of its investments following the 2016 commitment remains uncertain, which led Mr. Trump to comment on social media: As if to prove Masa’s point, Masa said he would never do this had we not won the election!
In the recent past, SoftBank has had a lot of success with ARM, the chip design company that is one of its most important assets. The company started floating in the stock market in September, the year 2023, and the company’s stocks have appreciated nearly three folds. It is believed that AI will put Arm at the frontier of technology development in the nearest future.
Furthermore, SoftBank recently invested $500 million in OpenAI, the company that developed ChatGPT, and is expected to invest another $1.5 billion by purchasing shares from employees, sources say.
The investment unveiled on Monday is expected to focus on what is needed to support the emergence of artificial intelligence, power, data centers, and semiconductor technology, people close to the company said.
In June 2023 when SoftBank Group held its annual meeting, its CEO Mr. Son stated that in this remaining part of his life he wanted to be an architect to create the future of mankind through artificial intelligence.
Apart from Mr. Son, other tech billionaires are also reported to have financially supported the president-elect, not sparing theirword of mouth, some of them have actually visited the president elect’s resort in Mar-a-Lago to show their support. In particular, two tech giants Amazon and Meta alongside the leading AI company OpenAI co-funded $1m to the president elect’s inaugural committee along with Sam Altman. In addition, Google’s Sundar Pichai and Sergey Brin met the president-elect on Thursday, following this, Apple’s Tim Cook also saw the president-elect the next day.