President-elect Donald Trump and SoftBank Group CEO Masayoshi Son have announced a monumental investment plan by the Japanese company to inject $100 billion into various US ventures over the next four years.
The announcement was made at Trump’s Mar-a-Lago resort, with Howard Lutnick, head of investment bank Cantor Fitzgerald, who is Trump’s nominee for commerce secretary also present at the event.
The big picture: Trump attributed the significant influx of capital to optimism about the future of the United States following his election, noting that a substantial interest to invest in the country has been expressed by various entities since the election.
- Son, expressing his joy to work with Trump, aimed to bring peace to the world through this investment and doubled down on the commitment by mentioning that the $100 billion was double the initial investment pledge he made in 2016.
Driving the news: SoftBank was founded by Son in 1981, with a focus on strategic investments across various companies and industries globally. The company’s portfolio includes key players like Yahoo, Alibaba, and Nvidia, among others.
- While some of SoftBank’s investments, like the partnership with Saudi Arabia for a robot factory in Riyadh, have been successful, notable failures include investments in companies like WeWork and Zume.
State of play: This announcement comes on the heels of Trump’s initiatives to expedite federal permits for projects exceeding $1 billion, underscoring his administration’s focus on promoting job creation and economic growth through increased investments.
- The previous successful dealings between Trump and Son date back to 2016 when Son pledged 50 billion dollars to create jobs in US startups after a meeting with Trump, which the President-elect celebrated as a victory due to his successful election.
