Trump and the CEO of SoftBank will announce a $100 billion investment in the US
Donald Trump and SoftBank Group CEO Masayoshi Son are poised to jointly reveal on Monday that the company intends to invest $100 billion in U.S. projects over the next four years, as reported by a source familiar with the event, reflecting the president-elect’s desire to convey optimism regarding his resurgence in power.
The Japanese internet and telecommunications behemoth anticipates that its investments in the United States will generate 100,000 jobs concentrated on artificial intelligence and cutting-edge technologies, with a timeline set to finalize these efforts before the conclusion of Trump’s presidency in 2029, according to the source. Trump and his son are set to make a joint appearance at Mar-a-Lago, the former president’s exclusive club in Florida. A representative from SoftBank refrained from providing any comments. The method by which SoftBank plans to finance its commitment remains ambiguous. The international technology investor currently possesses approximately $30 billion in liquid assets.
The pledge represents a significant advantage for the forthcoming Republican president, who has prioritized economic revitalization as a key element of his electoral platform and has indicated readiness to act decisively on his agenda upon assuming office next month. Recently, Trump announced that firms investing $1 billion or more in the United States would be granted expedited permitting processes. The $100 billion represents a twofold increase from the amount Son pledged to allocate to startups after his December 2016 meeting with Trump, which occurred shortly after Trump’s initial successful campaign for the presidency. At that moment, Trump referred to Son as “one of the great men of industry.”
The commitment made in 2016 followed closely on the heels of Son obtaining substantial financial backing from Middle Eastern nations for the majority of the SoftBank Vision Fund, a venture capital initiative amounting to $100 billion. The fund, predominantly allocated to the U.S. market, became emblematic of several notable failures, including the office space venture WeWork and the unsuccessful startups Katerra, which focused on construction, and a robot pizza delivery enterprise.
The recent performance has deterred external investors from supporting SoftBank in a subsequent Vision Fund, potentially complicating efforts to secure outside capital to meet the Trump commitment. In recent times, Son has shown a pronounced enthusiasm for investing in AI, a sector he has long identified as primed for financial commitment. However, his pace of investment in startups has noticeably lagged compared to previous years. He has expressed ambitions to invest in sectors related to data centers and chip manufacturing, according to sources familiar with the discussions.
Earlier this year, he expressed his belief that computers will achieve human-level cognitive abilities, referred to as artificial general intelligence, within the next 2 to 3 years. “An unprecedented surge of intelligence has emerged.” “The individual who accelerates the quickest will emerge victorious,” remarked Son at SoftBank World 2024, a conference hosted by his firm. In June, SoftBank announced its intention to establish a joint venture with the American healthcare company Tempus AI.
At various points, corporations have faced challenges in fulfilling their ambitious pledges to generate employment and allocate resources within the United States. In 2018, Trump made a visit to Wisconsin to inaugurate the construction of a liquid-crystal-display plant. Electronics manufacturer Foxconn announced its intention to invest $10 billion in the initiative, projecting the creation of as many as 13,000 jobs within the state. However, the company subsequently reduced its ambitions, allocating only a small portion of the funds and generating significantly fewer jobs than initially pledged.
Trump has been keen to demonstrate his influence as he makes his return to the White House. He has engaged with global leaders and convened with prominent business executives, including those who had previously distanced themselves from him. During the weekend, Donald Trump and his spouse, Melania, welcomed Akie Abe, the widow of the late Japanese Prime Minister Shinzo Abe, at their Mar-a-Lago estate.
