U.S. President-elect Trump announced on Monday during an event attended by SoftBank Group CEO Masayoshi Son that SoftBank Group plans to invest $100 billion in the U.S. over the next four years.

Trump said, "He is doing this because he feels very optimistic about our country since the election." He added that this commitment represents "confidence in America's future."

"I am extremely, extremely excited," Masayoshi Son told reporters after meeting Trump at Mar-a-Lago in Florida. "I really want to celebrate President Trump's great victory, and his victory has greatly increased my confidence in the U.S. economy."

According to a person familiar with the plan, it includes a commitment to create 100,000 jobs focused on artificial intelligence and related infrastructure, including investments in data centers, semiconductors, and energy.

SoftBank's statement immediately raised the question: where will the company obtain the funds for its latest commitment? During Trump's first term, Masayoshi Son raised $100 billion for the Vision Fund using funds from external investors and invested that cash into startups such as WeWork, Uber Technologies, and DoorDash.

SoftBank currently does not have enough cash on hand to fulfill Masayoshi Son's commitment. As of the end of September, the company's cash and cash equivalents stood at 3.8 trillion yen (approximately $25 billion). However, the company's financial situation has improved with the IPO of chip design company Arm Holdings Plc. SoftBank still holds about 90% of Arm's shares, which currently has a market value of around $160 billion.

On Tuesday, SoftBank's stock rose 3.3% in early trading in Tokyo, marking a 55% increase for the year.

This Japanese billionaire joined the ranks of many tech executives hoping to win favor with the incoming Trump administration. OpenAI CEO Sam Altman will donate $1 million to Trump's inaugural fund, having previously donated to Biden's 2024 reelection campaign. Meta Platforms, Amazon, and the AI startup Perplexity also pledged $1 million each.

Trump expressed amazement on Monday at the support he received from corporate executives, stating that this is a stark contrast to his first term. "In the first term, everyone was arguing. This term, everyone wants to be my friend," he said.

During Trump's last presidency, Masayoshi Son established a strong relationship with Trump, visiting Trump Tower in December 2016 and promising to create 50,000 jobs as part of a $50 billion investment. SoftBank was one of the few companies to make such commitments at the time. The company has actively invested in U.S. companies through its Vision Fund investment vehicle. However, SoftBank later ran into trouble as many of its deals faltered, including a multi-billion dollar investment in the office space startup WeWork, which eventually filed for bankruptcy.

Masayoshi Son's commitment marks the highest-level commitment by a company to expand investment in the U.S. since Trump won the election.

During the campaign, Trump promised to boost the U.S. economy by lowering corporate tax rates, using tariffs to encourage foreign companies to invest in the U.S., and rolling back regulations that Republicans claim hinder economic growth. Trump also promised to expedite approvals for those willing to invest $1 billion or more in projects in the U.S.

Although he did not specify how he would expedite approvals, his commitment alleviated a major concern for tech and energy companies that regulatory delays could slow the upgrade of U.S. energy infrastructure, which is necessary for advancing artificial intelligence.

"This is President Trump's fulfillment of his promise to the American people during the campaign that he would make the United States a global manufacturing superpower," said Trump transition spokesperson Karoline Leavitt on Monday to Fox Business.

But Trump also told voters that he hopes foreign companies become entities based in the U.S., promising to attract businesses through tax cuts and deregulation. SoftBank's investment suggests this may not be achievable, as global companies are eager to make announcements favored by Trump but do not want to take on the risks of relocating headquarters and supply chains.

It is currently unclear how much of SoftBank's commitment is new investment. According to Bloomberg News, Masayoshi Son had already planned to establish a $100 billion chip joint venture to develop chips for artificial intelligence even before the election.

In the months following Trump's first term win eight years ago, several major companies announced spending commitments, some related to long-gestating projects. For example, Ford Motor Company announced plans to cancel the construction of a $1.6 billion factory in Mexico after strong criticism from Trump, opting instead to invest in U.S. facilities. The President of Ford's Americas division stated at the time that the company announced an investment of $1.2 billion in three plants in Michigan, although some of those plans were part of contract negotiations with the United Auto Workers in 2015.

Masayoshi Son vowed to increase investment in artificial intelligence, believing that AI technology will change nearly every business. In October, SoftBank invested $500 million in OpenAI and plans to increase its investment by launching a tender offer to existing shareholders for up to $1.5 billion worth of startup stock.

Masayoshi Son said at the event in Mar-a-Lago: "President Trump is a steadfast president, and I will be steadfast too."

Trump smiled and said he hopes Masayoshi Son will actually invest $200 billion in American companies.

"I will really work hard," Masayoshi Son said with a smile.

Article shared from: Jin Ten Data