PlanSoftBank of Japan intends to allocate $100 billion to US investments in the coming four years
President-elect Donald Trump teamed up with Masayoshi Son, the CEO of SoftBank Group, to unveil a significant initiative where the Japanese firm plans to invest $100 billion into various projects in the United States over the next four years.
During a press event held at his Mar-a-Lago resort on Monday, Trump made the announcement with Son by his side, accompanied by Howard Lutnick, the head of investment bank Cantor Fitzgerald and Trump’s nominee for commerce secretary. Trump expressed that Son’s investment decision stems from a strong optimism about America’s future, adding that since his election, there has been a marked interest from individuals and organizations wishing to invest large sums of money in the country.
SoftBank’s planned investments, according to Trump, represent an “extraordinary show of faith in America’s future.” Son took the opportunity to celebrate Trump’s electoral win, stating his desire to foster peace globally, while also expressing excitement about the potential partnership.
The president-elect highlighted that the newly announced $100 billion investment is double the amount that Son had previously pledged in 2016, just before Trump assumed office. In a lighthearted exchange, Trump jokingly asked Son if he would further increase his investment to $200 billion.
Historically, Trump has touted various international business ventures with much enthusiasm, but there have been instances where those investments did not come to fruition as expected. For instance, Foxconn Technology Group, a Taiwanese corporation known for its production of Apple devices, had received applause from Trump in 2017 when it committed to constructing a $10 billion facility in Wisconsin that was set to create 13,000 jobs. However, subsequent developments led to a significant reduction in Foxconn’s investment plans following the impact of the COVID-19 pandemic.
Despite previous inconsistencies, the Monday announcement marks a notable achievement for Trump, who has been actively promoting his economic policies and engaging with global leaders in the period following the election. Trump has already indicated intentions to impose hefty tariffs on Mexico and Canada, which led to a diplomatic visit from the Canadian prime minister and discussions with Mexico’s leader.
SoftBank, established in 1981 by the ambitious entrepreneur Son, who holds a degree from the University of California, Berkeley, has a diverse investment strategy through its capital venture fund. Its portfolio includes a variety of notable companies such as the search engine Yahoo, the Chinese e-commerce giant Alibaba, and the artificial intelligence company Nvidia. Earlier this year, it also entered into a collaboration with Saudi Arabia aimed at creating a robot manufacturing facility in Riyadh.
After Trump’s 2016 electoral victory, he held discussions with Son, who subsequently announced his intention to generate 50,000 jobs and invest $50 billion in U.S. startups, a pledge that Trump highlighted on social media, asserting that such developments would not have occurred without his election.
Not all of SoftBank’s investments have yielded positive results, however. The firm faced backlash due to its vast stake in WeWork, which recently sought bankruptcy protection, and its investment in the now-defunct robot pizza company Zume.
This recent announcement follows Trump’s recent commitment to fast-track federal permits for energy and construction projects exceeding $1 billion in value.
