SoftBank Group CEO Masayoshi Son has made a strategic pivot toward the US market, appearing alongside President Donald Trump twice since his November election victory to unveil major investment plans. Previously, nearly half of SoftBank's investments were concentrated in Asia, with a significant focus on China, where Son achieved remarkable success with his early investment in Alibaba in 2000.
The launch of the Stargate Project
Over the past two months, Son has twice appeared alongside Trump. In December 2024, following Trump's election win, Son pledged a US$100 billion investment in the US. The second appearance came shortly after Trump's second-term inauguration, where he proclaimed the start of a "golden age" for America.
During the event, Son joined OpenAI CEO Sam Altman and Oracle Chairman Larry Ellison to unveil The Stargate Project, a joint venture between the three tech giants aimed at expanding AI infrastructure across the US.
Stargate will kick off with an initial investment of US$100 billion, with an ambitious target to scale up to US$500 billion. SoftBank will oversee financial management, while OpenAI will handle operations. Son is set to serve as chairman of the newly formed entity.
According to media reports, Son told Trump during the announcement that he initially pledged US$100 billion after the election, but Trump urged him to raise it to US$200 billion. However, inspired by Trump's vision of a "golden age," Son returned with a commitment of US$500 billion.
Reports indicate that Son privately met with Altman in late 2024 to finalize the framework of the Stargate initiative.
Industry rivals cast doubt on Stargate's viability
Tesla CEO Elon Musk, a staunch Trump ally and OpenAI competitor, expressed skepticism about Stargate's financial backing. Posting on X, Musk claimed that the consortium "doesn't actually have the money," citing credible sources that suggest SoftBank has secured "well under US$10 billion." Altman promptly responded to Musk's claims.
Anthropic CEO Dario Amodei also weighed in, calling the Stargate initiative "a bit chaotic," as noted by Yahoo Finance.
Son's ambitious US$500 billion AI bet has faced scrutiny over concerns of inadequate funding and unclear planning—claims that may hold some merit. Trump and observers alike are watching closely to see if Son can deliver on his bold promises or if this is yet another overhyped venture.
SoftBank expands in AI data centers
SoftBank's recent foray into AI data centers and supporting power infrastructure has caught industry observers by surprise.
To meet the substantial energy demands of AI data centers, SoftBank is expanding its power generation capacity through its US-based subsidiary, SB Energy Global. In October 2024, SB Energy successfully launched commercial operations of solar power plants in Texas, supplying energy to Google's data centers.
SoftBank is also eyeing acquisitions in the renewable energy sector, targeting solar power and battery storage companies. Looking ahead, the company has identified nuclear fusion technology as a key component of its long-term development strategy.
In a strategic move, Son previously split SoftBank's investment division from its core telecommunications operations, establishing them as independent entities. The launch of the Vision Fund in 2017 marked a definitive pivot toward investment-focused ventures.
SoftBank is now actively participating in the development of AI data centers and power infrastructure in the US, with the ambitious goal of advancing artificial general intelligence (AGI). This marks a significant shift for the company as it enters a highly competitive industry. However, critics argue that SoftBank lacks the necessary expertise and technological capabilities, leaving the project's success uncertain.
SoftBank's investment focus shifts from China to the US
In 2020, China accounted for 46% of SoftBank's total investments, while US-based investments stood at 36%.
Son's investment strategy was initially driven by globalization trends. However, with the ongoing fragmentation of global markets, escalating US-China tech tensions, and China's increasing regulatory scrutiny of domestic technology firms, SoftBank was forced to rethink its approach.
Faced with declining investment values and financial setbacks, Son had little choice but to pivot his strategy. By June 2022, he revealed that Alibaba, which once made up nearly half of SoftBank's equity holdings, had been reduced to around 20%, signaling a significant decrease in reliance on China. The company continued divesting its Alibaba shares to further minimize exposure.
Following years of strategic realignment, Son has emerged as a key player in US investments. Whether his AI initiatives will succeed remains uncertain, but industry stakeholders worldwide are closely watching the progress of this ambitious blueprint.
Article translated by Eifeh Strom
