Trump, SoftBank CEO Masayoshi Son Announces $100 Billion US Investment | Donald Trump news

Son made a similar pledge in 2016 to spend $50 billion during Trump’s four years in office. It is unclear how SoftBank will finance the new investment.

President-elect Donald Trump, along with SoftBank Group CEO Masayoshi Son, announced that SoftBank will invest $100 billion in the United States over the next four years to boost the local economy.

In a joint speech with Son on Monday, Trump said the investment would create 100,000 jobs focused on artificial intelligence (AI) and related infrastructure, and that the money would be deployed by the end of Trump’s term.

Trump said that this investment is a proof of “great confidence in America’s future”. He encouraged Son to invest $200 billion in response to the Japanese billionaire’s attempt.

The $100 billion pledge, made at a flag-raising event at Trump’s Mar-a-Lago club in Palm Beach, Florida, coincides with Trump’s second-term pledge to boost the U.S. economy and reduce the impact of inflation on Americans. It starts on January 20.

Trump called Son “one of the most capable business leaders of our time.”

Monday’s announcement echoes a similar promise Son made with then-President-elect Trump at a December 2016 event at Trump Tower in New York City, when Son said he would spend $50 billion and create 50,000 jobs.

Although the money was eventually spent, it is not clear whether these jobs were created. The company is rebuilding its finances after the failure of high-flying office-sharing startup WeWork and the fallout from investors at some of the tech firms it invested in through its Vision Fund unit.

The source of the fund is unclear

Trump is prone to flashy announcements promising thousands of jobs, though such investments don’t always materialize. Early in his first term, he announced a $10 billion investment by Foxconn in a Wisconsin factory that promised thousands of jobs but was largely abandoned.

It is unclear how SoftBank plans to finance the new investment. SoftBank had about $29 billion in cash and cash equivalents as of Sept. 30, according to its most recent earnings report. After a sharp decline in shares between 2021 and 2023, its shares have recovered, gaining nearly 50 percent year-to-date.

Funding could come from a variety of sources controlled by SoftBank, including the Vision Fund, capital projects or chipmaker Arm Holdings, CNBC said.

Son has been a strong supporter of the potential of artificial intelligence and is seeking to expand SoftBank’s influence in the sector, taking a stake in OpenAI and acquiring chip startup Graphcore.

In October, Son reiterated his belief in the future of artificial super-intelligence, saying it would require hundreds of billions of dollars in investment.

The son said at the time that he was saving money “to take the next big step,” but gave no details.

Trump promised an extension last week fast track permit Any company with an investment of $1 billion or more in the United States.