Trump, Softbank CEO announce $100 billion U.S. Investment

What Happened?

Softbank CEO Masayoshi Son announced with President-elect Donald Trump a $100 billion investment in the U.S. over the next four years.

The announcement was made Monday during a visit to Trump’s Mar-a-Lago residence in Palm Beach, Florida. The president-elect took a series of questions from journalists for more than an hour on a wide range of subjects.

Trump, alongside the billionaire founder of the Japanese tech-investing firm, says the venture aims to generate 100,000 new jobs that are at a minimum focused on artificial intelligence and related infrastructure, according to reports.

The money will be reportedly deployed before the end of Trump’s term in 2029.

While speaking during his visit to Mar-a-Lago, Son said, 'My confidence level to the economy of the United States has tremendously increased with his victory. President Trump is a double-down president. I’m going to have to double down.'

Trump calls the investment 'a monumental demonstration of confidence in America's future.'

He adds, 'It will help ensure that artificial intelligence, emerging technologies, and other industries of tomorrow, are built, created, and grown right here in the USA.'

Why it Matters

Trump also referenced a similar promise kept by Son and SoftBank when it was announced after Trump was first elected president in 2016 that the Japanese firm would invest $50 billion in the U.S. that was aimed at creating 50,000 jobs.

But some point to the company's previous 'SoftBank Vision Fund.' That was a $100 billion venture capital fund invested in the U.S. that consisted of failing operations such as office space company WeWork, and construction-focused startup Katerra.

Son was reportedly cited in October as saying he believes computers will possess human-level cognitive abilities within the next two to three years.

And during a Sept. 2023 CNBC interview, Son said, 'I think this is the first time that mankind experienced something smarter than mankind itself. Mankind was the smartest animal on the earth — AI is going to surpass and surpass big time.'

Concluding these failed operations, Softbank and its CEO are shifting their investment approach that's geared more rapidly toward the growth of AI.

How it Affects You

During a time when the U.S. has certainly awaited an economic reboot, a financial partnership like this could help the incoming presidential administration achieve that goal.

However, it's key to monitoring the interests of companies that heavily back AI, as it's been a huge focal point of discussion when evaluating the future of our nation and its security over AI regulation.