SoftBank CEO Joins Trump to Announce Massive US Job Creation Plan

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President-elect Donald Trump, alongside SoftBank Group CEO Masayoshi Son, announced on Monday a $100 billion investment commitment by SoftBank in the United States over the next four years. The investment, aimed at bolstering the U.S. economy, is expected to create 100,000 jobs in artificial intelligence and related infrastructure, with deployment planned before the end of Trump’s term.

Speaking at Trump’s Mar-a-Lago club in Palm Beach, Florida, the president-elect described the pledge as a sign of “monumental confidence in America’s future.” In a lighthearted moment, Trump encouraged Son to increase the investment to $200 billion, to which Son responded with a chuckle, saying he would try. This announcement follows a similar 2016 pledge, when Son committed $50 billion and 50,000 jobs during Trump’s first term.

While the source of funding for this new investment remains unclear, SoftBank had approximately $27 billion in cash on its balance sheet as of September 30, along with $3 billion remaining in its Vision Fund 2. Additional capital may also come from its chipmaker unit, Arm Holdings, according to a source familiar with the matter.

Trump praised Son as "one of the most accomplished business leaders of our time." However, it remains uncertain whether the jobs promised in previous announcements were fully realized. SoftBank has been restructuring its finances following setbacks like the collapse of WeWork and declining investor interest in some Vision Fund-backed tech firms.

Trump’s history of promoting major job creation initiatives includes a 2017 announcement of a $10 billion Foxconn investment in Wisconsin, which ultimately failed to deliver on its job promises. Nonetheless, Trump recently vowed to streamline permitting for any company investing $1 billion or more in the U.S.

Son, a staunch advocate for artificial intelligence, has expanded SoftBank’s involvement in the sector through investments in OpenAI and the acquisition of chip startup Graphcore. After a turbulent period for SoftBank’s shares between 2021 and 2023, the company’s stock has rebounded, gaining nearly 50% year-to-date. 

In October, Son reiterated his belief in the transformative potential of artificial superintelligence, emphasizing the need for hundreds of billions of dollars in investment. He mentioned saving up funds for “the next big move” but did not disclose specific plans.

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.