President-elect Donald Trump has received a commitment from SoftBank Group to invest $100 billion in the U.S., creating 100,000 jobs. The deal, announced Monday, Dec. 16, doubles SoftBank’s funding promise following Trump’s first presidential victory in 2016.
SoftBank said the investment will create jobs in AI and other emerging technologies. It said the projects will be complete before the end of Trump’s second term.
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“We’re going to go full prosperity and to build the greatest economy the world has ever seen, just as we had just a short time ago,” Trump said during an event at his Mar-a-Lago resort, flanked by SoftBank CEO Masayoshi Son.
Son touted his belief in the president-elect as he addressed the press.
“My confidence level [in] the economy of the United States has tremendously increased with his victory,” he said.
The connection between the Japan-based firm and Trump goes back to Trump’s first term. After Trump was elected in 2016, Son pledged to invest $50 billion in startups that would create 50,000 jobs. That investment ended up being closer to $75 billion, CNN reported.
“This is double of last time because I say, ‘Oh, President Trump is a double-down president, I’m going to have to double down,’ $100 billion and 100,000 jobs,” Son said.
Trump also jokingly asked Son to up SoftBank’s commitment to $200 billion. Son stuck with his promise for $100 billion but said he would try to make bigger investments happen.
SoftBank Group is an investment management company, and Son has been pushing for more investment in AI. He’s keen on funding areas tied to AI tech, including data centers and semiconductor manufacturing, according to The Wall Street Journal.
“A gold rush of intelligence has arrived. The one who goes fastest will win,” Son said during SoftBank World 2024.
SoftBank only has $30 billion in cash on hand, according to the Journal. But the funds could come from new money raised by any number of sources, including SoftBank’s Vision Fund.
The Vision Fund is a $100 billion venture capital fund, with nearly half of the funding coming from Saudi Arabia’s Public Investment Fund. One of its most high-profile setbacks was a $4.6 billion hit in 2019 from its WeWork investment.
President-elect Trump has promised to push economic growth during his second tenure in the White House. Last week, he announced his administration will fast-track permitting for companies that invest over $1 billion in the nation.
