President-elect Donald Trump and SoftBank Group CEO Masayoshi Son announced on Monday a $100 billion investment in the United States over the next four years, aimed at boosting the U.S. economy and creating 100,000 jobs. The announcement, made at Trump’s Mar-a-Lago club in Florida, comes as Trump prepares to begin his second term on January 20.
The funds are set to focus on artificial intelligence (AI) and related infrastructure development, aligning with Trump’s promises to stimulate the economy and reduce inflationary pressures. Trump hailed the investment as evidence of “monumental confidence in America’s future” and jokingly encouraged Son to raise the investment to $200 billion. Son responded with a chuckle, saying, “I will try.”
Echoes of 2016 Pledge
Monday’s announcement mirrors a similar event in December 2016, when Son pledged $50 billion and 50,000 jobs shortly after Trump’s first election win. While the capital was eventually spent, it remains unclear if the promised jobs materialized.
Trump’s affinity for large-scale economic announcements was also seen in 2017, when Foxconn pledged a $10 billion investment in a Wisconsin factory that promised thousands of jobs but largely failed to deliver.
SoftBank’s Financial Position
While details on how SoftBank plans to fund the $100 billion investment remain unclear, the Japanese conglomerate reported approximately $27 billion in cash as of September 30, according to its latest earnings report. Additionally, SoftBank’s Vision Fund 2 has about $3 billion left to deploy.
Sources suggest capital could also come from Arm Holdings, the chipmaker partially owned by SoftBank.
SoftBank’s AI Push
Masayoshi Son remains a vocal advocate for artificial intelligence, doubling down on AI investments as part of SoftBank’s broader strategy. In October, Son reiterated his belief in the rise of artificial super-intelligence (ASI), predicting it would require hundreds of billions of dollars in investment.
SoftBank has already taken strategic positions in AI by investing in OpenAI and acquiring chip startup Graphcore.
The company’s recovery from significant setbacks, such as the failure of WeWork and declines in its Vision Fund investments, has been notable. SoftBank’s stock has rebounded nearly 50% year-to-date after falling between 2021 and 2023.
Trump’s Economic Strategy
The $100 billion pledge aligns with Trump’s focus on fast-tracking economic growth. Last week, Trump promised to extend fast-track permitting for any company committing $1 billion or more in U.S. investments, aiming to attract substantial domestic and international capital.
While SoftBank’s $100 billion investment announcement reflects Trump’s emphasis on economic development, the actual impact remains to be seen. Masayoshi Son’s confidence in AI as a transformational force—and Trump’s push for job creation—suggest a shared vision for America’s technological future. However, the true success of this ambitious commitment will depend on the execution, funding details, and the realization of promised jobs and infrastructure.
