The technology company plans to invest $100 billion in U.S. projects, echoing the multibillion-dollar pledge it made after Donald J. Trump’s first election victory in 2016.
The centerpiece of President-elect Donald J. Trump’s first news conference since the election was an eye-catching promise: a $100 billion investment in the United States by the Japanese technology company SoftBank.
On Monday, while standing next to SoftBank CEO Masayoshi Son at his Mar-a-Lago home, Mr. Trump made a promise that mirrored a $50 billion commitment SoftBank made following his win in 2016. Following that pledge, investments were made in a number of young start-ups, some of which succeeded and others of which failed. Examples of these include Zume, a company that made pizza using robots, and WeWork, a co-working space.
Mr. Trump claims that the goal of SoftBank’s investment is to generate 100,000 new jobs. Over the following four years, the investment would concentrate on technology and artificial intelligence, according to Trump transition officials.
Mr. Trump put the SoftBank CEO on the spot right away during the press conference, requesting that he increase the promise. Mr. Trump asserted, “He can really afford to do that.” Despite his lack of commitment, Mr. Son referred to the president-elect as a skilled negotiator.
SoftBank does not currently hold $100 billion in cash. According to someone familiar with SoftBank’s plans, the funds are anticipated to come from both its balance sheet and funds raised in collaboration with partners.
The 67-year-old Mr. Son founded SoftBank in Tokyo in 1981 and has since grown it into one of the world’s biggest technology investors. His company is well-known for its high-profile successes and failures, and Mr. Son, also called Masa, has a reputation for making headlines with his eye-popping statements, investments, and fund-raising.
Prior to Mr. Trump’s first inauguration, in December 2016, Mr. Son pledged a $50 billion investment in the US, which he claimed would generate 50,000 jobs. Shortly before that statement, Mr. Son had revealed plans for SoftBank’s Vision Fund, a $100 billion investment vehicle for global technology companies. Saudi Arabia was the source of half of that $100 billion.
Mr. Son became one of the biggest backers of tech start-ups, such as DoorDash and Uber, through that fund.
After the 2016 vow, SoftBank’s investments produced an unknown number of jobs, prompting Mr. Trump to post on social media, “Masa said he would never do this had we (Trump) not won the election!”
The semiconductor design company Arm, a significant investment in SoftBank’s portfolio, has recently seen significant success. Since SoftBank went public in September 2023, the company’s stock has almost tripled in value. Arm has the potential to play a significant role in the development of artificial intelligence.
According to a person with knowledge of the situation, SoftBank also just invested $500 million in OpenAI, the firm that created ChatGPT, and plans to spend an additional $1.5 billion by purchasing employee stock.
According to a person familiar with the company’s plans, the investment announced Monday is probably going to be concentrated on the infrastructure required to sustain the A.I. growth via energy projects, data centers, and chips.
During SoftBank’s June 2023 annual meeting, Mr. Son shared that he had come to the realization that he intended to use artificial intelligence (AI) to spend the rest of his life and career as “an architect to build the future of humankind.”
Some of the most well-known IT figures, in addition to Mr. Son, have recently publicly supported the president-elect by traveling to Mar-a-Lago and presenting him with gifts and praise. Mr. Trump’s inaugural committee received $1 million from Sam Altman of OpenAI, Amazon, and Meta. Mr. Trump had dinner with Google’s Sundar Pichai and Sergey Brin on Thursday, and Tim Cook of Apple had dinner with him the following day.
Last Monday, Time magazine’s owner and Salesforce CEO Marc Benioff wrote on X that it was “a time of great promise for our nation.” Mr. Trump received Time’s prized “Person of the Year” honor, and the president-elect rang the opening bell to celebrate at the New York Stock Exchange