Softbank, Trump announce $157b investment pledge in US tech
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The news: SoftBank CEO Masayoshi Son announced a USD100 billion ($156.89 billion) investment in the US over the next four years, unveiled during an event at President-elect Donald Trump’s Mar-a-Lago estate.
The numbers: The plan aims to create 100,000 jobs and will focus on investments in artificial intelligence, data centres and chip manufacturing.
Trump called the pledge a "monumental demonstration of confidence in America’s future," while Son said his confidence in the US economy had “tremendously increased” following Trump’s election.
At the announcement, Trump asked Son to consider doubling the investment to USD200 billion, to which Son laughed and said he would “try to make it happen.”
The context: It is unclear how SoftBank intends to fund the commitment. It could come from its Vision Fund or its chip design company, Arm Holdings. SoftBank has roughly USD30 billion of cash on hand, The Wall Street Journal noted.
The pledge is Son’s second after a USD50 billion commitment in 2016 with the aim to create 50,000 jobs. The firm’s Vision Fund went ahead to back firms like Uber, WeWork and Katerra, but it’s not known how many jobs were created.
What they said: “My confidence level to the economy of the United States has tremendously increased with his victory,” Son said. “President Trump is a double down president. I’m going to have to double down.”
“He’s doing this because he feels very optimistic about our country since the election,” Trump said. “This historic investment is a monumental demonstration confidence in America’s future, and it will help ensure that artificial intelligence, emerging technologies, and other industries of tomorrow are being created and grown right here in the USA.”
The sources: CNBC , The Wall Street Journal , The Financial Times , The Hill
