- SoftBank plans to invest $100B in US AI startups and infrastructure projects, doubling its 2016 commitment.
- The investment is expected to create 100K jobs in the tech sector over 4 years, further accelerating AI and data center development.
- This comes as demand surges for AI infrastructure, chip manufacturing, and data centers, but power constraints and labor shortages pose problems.
- SoftBank’s track record in proptech has seen mixed results, including losses on WeWork and Katerra, but continued backing of firms like Compass.
SoftBank CEO Masayoshi Son and President-elect Donald Trump announced a $100B investment in US AI startups and infrastructure on Monday, as reported by Bisnow.
The Bigger Picture
The pledge, made at Trump’s Mar-a-Lago residence in Florida, builds on a 2016 $50B commitment.
“This is double of last time,” Son said at the press conference. “I said, President Trump is the double-down, so I’m going to have to double down.”
According to WSJ, the investment will be implemented over the next four years and is expected to generate 100K new jobs in the tech sector. While details about funding sources remain unclear, it will likely draw from multiple SoftBank-controlled entities.
Fueling The AI Revolution
SoftBank’s move comes amid unprecedented demand for AI infrastructure, driven by advancements in machine learning and data-driven technologies. AI apps are driving the need for more data centers, chip manufacturing, and energy solutions nationwide.
- Data center expansion: Data centers are projected to double over the next 6 years. Skyrocketing AI adoption and government chip manufacturing incentives have fueled this growth.
- Challenges remain: Despite this boom, power constraints, labor shortages, and supply chain disruptions have slowed development timelines.
SoftBank is already a major player in AI investments. The company holds a majority stake in Arm Holdings (ARM), an early stake in Nvidia (NVDA), and recently committed $1.5B to OpenAI.
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Cautionary History
Due to its high-profile—and sometimes turbulent—track record, SoftBank’s investments in the CRE and proptech sectors are closely watched.
- WeWork: SoftBank once owned 71% of WeWork, valuing the company at $47B at its peak. However, WeWork’s rapid expansion led to losses, culminating in a $14B write-off when the coworking firm filed for bankruptcy in 2023.
- Katerra: SoftBank’s $2B investment in modular construction startup Katerra failed when the company collapsed in 2021.
- Compass: SoftBank invested $1B in Compass (COMP) before its 2021 IPO. Compass has since reported its first profitable quarter in 2024, though SoftBank gradually reduced its stake.
Despite these setbacks, SoftBank’s AI and infrastructure push signals its ongoing commitment to tech-driven innovation, particularly in areas like data centers and digital infrastructure.
What’s Next?
SoftBank’s $100B pledge could transform the US AI landscape, accelerating startup investments, energy infrastructure, and advanced manufacturing.
The commitment aligns with Trump’s recent promise to streamline approval for projects over $1B, although environmental regulations may slow progress.
For the real estate and tech industries, SoftBank’s move will likely deepen the data center boom and spark further opportunities in AI-driven infrastructure—despite the ongoing challenges of power shortages and development delays.
As Masayoshi Son doubles down, the question remains whether SoftBank’s bold bets on the US will deliver the massive returns it envisions.
