On Monday, December 16, President-elect Trump (Trump) and SoftBank Group Corp.’s CEO Masayoshi Son jointly announced at the Mar-a-Lago estate that SoftBank will invest $100 billion in the United States over the next four years, a move that is expected to boost the American economy.
According to Reuters, this investment will create 100,000 job opportunities in the United States, with a focus on artificial intelligence (AI) and related infrastructure. The funds are expected to be fully deployed before the end of Trump’s term.
Trump stated that this investment demonstrates investors’ “great confidence in the future of America,” and praised Son as “one of the most accomplished business leaders of our time.”
Furthermore, Trump took the opportunity to encourage Son to double the investment amount to $200 billion. Son responded with a smile, saying he will strive to make it happen.
Trump has previously stated that his second term will focus on boosting the American economy and reducing the impact of inflation on the lives of American citizens.
It is currently unclear how SoftBank will raise funds for this new investment. As of September 30, SoftBank’s latest financial report shows that its cash and cash equivalents amount to around $29 billion. After experiencing a significant drop in stock prices from 2021 to 2023, its stock price has rebounded this year, with an increase of nearly 50% year-to-date.
CNBC reported that the funds for this investment may come from various sources controlled by SoftBank, including the Vision Fund, capital projects, or the majority-owned chip manufacturer Arm Holdings by SoftBank.
This bold move by SoftBank signifies a major vote of confidence in the American economy and is expected to have a significant impact on job creation and technological advancement in the country. The partnership between SoftBank and the incoming administration is seen as a positive step towards fostering economic growth and innovation in the United States.