The newly elected president of the United States, Donald Trump, announced that Softbank will be investing $100 Bn into the future of America. According to Aljazeera, in a joint appearance with the CEO of Softbank Masayoshi Son, Donald Trump announced the investment plan to create 1,00,000 jobs focused on AI (Artificial Intelligence). The investment is planned to manifest completely before Trump’s presidential term ends.
However, this is not the first time Son has pledged an investment in the USA. 2016, during Trump’s term, Son promised to spend $50 Bn in the country to create 50,000 jobs. Which were later spent, but it is still not clear whether that money helped create jobs.
Ambiguity in Fund Sources
SoftBank’s funding strategy for its new investment remains unclear. As of September 30, the company reported approximately $29 billion in cash and cash equivalents, according to its latest earnings report. Despite a steep decline in its share price between 2021 and 2023, SoftBank’s stock has rebounded significantly, climbing nearly 50% year-to-date.
The funding for this investment could come from multiple avenues within SoftBank’s portfolio. CNBC reported potential sources, including its Vision Fund, capital projects, and revenues from chipmaker Arm Holdings.
Masayoshi Son, SoftBank’s CEO, has been a vocal advocate of artificial intelligence’s transformative potential. He has actively worked to increase the company’s AI footprint, taking a stake in OpenAI and acquiring chip startup Graphcore.
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With SoftBank’s renewed focus on AI and tech-driven growth, this investment aligns with Son’s strategy of leveraging cutting-edge innovations to expand the company’s influence and secure its position in emerging markets.
