SoftBank Commits $100 Billion to U.S. Investment Amid AI Push

President-elect Donald Trump, alongside SoftBank Group CEO Masayoshi Son, announced that SoftBank plans to invest $100 billion in the United States over the next four years. The investment, which is expected to boost the U.S. economy, will focus on artificial intelligence and related infrastructure, with the funds to be allocated by the end of Trump’s term.

Trump stated that the investment would generate 100,000 jobs and emphasized it as a demonstration of confidence in the future of the U.S. economy. He humorously urged Son to consider doubling the investment to $200 billion, to which Son responded with a laugh, indicating he would try.

This announcement mirrors a similar commitment made by Son in December 2016 when he pledged to invest $50 billion and create 50,000 jobs. While the funds were ultimately invested, the job creation results remain unclear.

SoftBank has not yet disclosed specific details on how it plans to finance the $100 billion pledge. As of September 30, the company reported approximately $27 billion in cash on its balance sheet, with an additional $3 billion remaining in Vision Fund 2. A source familiar with the matter suggested that some capital might come from chipmaker Arm Holdings.

The announcement comes as SoftBank works to rebuild its financial position following setbacks, including the failure of WeWork and declining investor interest in several tech firms under its Vision Fund. Despite these challenges, SoftBank shares rose more than 3% in Tokyo trading on Tuesday after the announcement.

Amir Anvarzadeh, a Japan equity strategist at Asymmetric Advisors, expressed skepticism about the investment, noting a lack of clarity in SoftBank’s plans and questioning the availability of lucrative opportunities in AI, given the sector’s rapid evolution.

Son has been vocal about the transformative potential of AI and has been increasing SoftBank’s involvement in the sector through investments in companies like OpenAI and Graphcore. After significant losses in SoftBank’s stock value between 2021 and 2023, shares have rebounded, showing a nearly 55% gain year-to-date.

In October, Son reiterated his belief in the rise of artificial super-intelligence, emphasizing that its development would require hundreds of billions of dollars. He noted that he was conserving funds for a significant move but did not disclose specifics.

Analysts, including Kirk Boodry from Astris Advisory, suggested that SoftBank’s latest commitment largely aligns with existing investment plans and may not represent a major shift in strategy.

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