President-elect of the US, Donald Trump in his inaugural news conference since the election unveiled a striking commitment which stated that SoftBank, the Japanese tech giant will be investing $100 billion in the United States.
Gathered at his Mar-a-Lago estate together with the CEO of SoftBank, Masayoshi Son, Trump gave a reference to the previous $50 billion pledge which was made by SoftBank following his victory in 2016. The initial promise led to a flurry of investment in several startups, some thriving while others like the co-working space WeWork and Zume, the robotic pizza company faced major challenges.
Trump mentioned that his new investment aims to create 100,000 jobs with a special focus on technology and artificial intelligence over the next four years, as it has been outlined by his transition team.
Trump, during the conference, challenged CEO Son to double the investment emphasizing that he surely could afford to do it. While Son remained noncommittal, he did acknowledge Trump’s prowess as a negotiator.
According to insiders, familiar with the company’s strategy, it is important to note that SoftBank does not have $100 billion readily available and the funds will be sourced from its balance sheet and raised in collaboration with partners.
Back in December 2016, before Trump assumed office, Son had already pledged a $50 billion investment in the U.S., this announcement coincided with the launch of Vision Fund by SoftBank. SoftBank’s Vision Fund is a massive $100 billion initiative that aims at investing in tech firms globally, with half of that amount coming from Saudi Arabia. Recently, SoftBank has celebrated a significant success with Arm, a chip design company that has become a cornerstone of its investment portfolio. Arm’s stock rose, allowing SoftBank to play a very significant role in the burgeoning field of artificial intelligence (AI).
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