PALM BEACH, Fla. — SoftBank Group CEO Masayoshi Son announced on December 16, 2023, plans for his company to invest $100 billion in projects across the United States over the next four years. This significant announcement came during a joint appearance with President-elect Donald Trump at his Mar-a-Lago resort, aiming to bolster the U.S. economy and create approximately 100,000 jobs focused primarily on artificial intelligence (AI) and related infrastructure.
Trump heralded the investment as evidence of "monumental confidence in America's future," stating during the announcement, "This historic investment is a monumental demonstration of confidence in America’s future." He expressed optimism about attracting substantial foreign investments, asserting, "He’s doing this because he feels very optimistic about our country." The investments are expected to be deployed before Trump’s term concludes, starting on January 20, 2024.
Son, at the same event, echoed this sentiment, saying, “I am truly excited to make this happen,” and noted, “President Trump is a double down president. I’m going to have to double down.” This phrase captured the ambitious nature of SoftBank's latest pledge, reflecting past commitments made by the company back when Trump first took office.
The new commitment is reminiscent of SoftBank’s previous investment promise made back in December 2016, when Son promised $50 billion and the creation of 50,000 jobs upon Trump’s first election victory. While SoftBank reportedly raised around $75 billion through its Vision Fund following the earlier pledge, uncertainties linger about the exact number of jobs generated. It is unclear whether those commitments were fully realized, prompting scrutiny of the effectiveness of such monumental promises.
Trump himself has often made high-profile announcements about job creation, but history shows mixed results. A notable example was the $10 billion investment by Foxconn to build a factory in Wisconsin, which aimed to create 13,000 jobs but has since seen investment scaled back dramatically.
After discussing the investment, analysts are questioning how SoftBank plans to finance this new wave of spending, especially as the company reported having approximately $29 billion cash and cash equivalents as of September 30, 2023. Despite the recent recovery of SoftBank’s stock—gaining nearly 50% year-to-date after steep declines from 2021-2023—the source of funding for the announced $100 billion remains uncertain. Reports suggest it may come from various sectors within SoftBank, including its Vision Fund, capital projects, or the chipmaker Arm Holdings.
Son has been advocating for advancements within the AI sector, previously taking equity stakes in high-profile companies such as OpenAI, noted for creating the chatbot technology behind ChatGPT. He reiterated his belief earlier this year about the necessity of major investments, stating, “I’m saving up funds so I can make the next big move.” His strategic vision includes the belief of artificial super-intelligence coming to fruition.
The announcement also aligns with Trump's recent promise to streamline federal permitting processes for companies investing $1 billion or more, facilitating faster project rollouts which could significantly impact the sectors targeted by SoftBank's investment. This fast-tracking could play a key role as the U.S. shifts focus toward AI and tech-related ventures.
While the initial reception of the SoftBank announcement reflects enthusiasm about technological advancement and economic rejuvenation, past performance raises eyebrows. The uncertain legacy of SoftBank’s dealings features high-profile failures, including its notorious stake in WeWork, which sought bankruptcy protection, alongside its investments in the robot pizza-making company Zume.
Onlookers will closely watch whether this latest attempt by SoftBank is met with successful outcomes or if it will mirror earlier endeavors marked by overblown expectations. The focus on AI and the associated infrastructure signals SoftBank’s commitment to remain at the cutting edge of technological developments, but financial transparency and accountability will be pivotal as they edge closer to executing this ambitious plan.
The actual deployment of this investment strategy will be monitored, especially considering the potential for job creation and advancement of technology within the country. The initiative highlights the intersection of international investment and domestic economic policy under Trump, who has emphasized revitalizing American industry during his political tenure.
