SoftBank pledges $100B to create 100,000 U.S. tech jobs

Masayoshi Son, the CEO of Japanese technology and telecoms giant SoftBank Group, announced plans to invest $100 billion in U.S. tech projects over the next four years. The announcement came during a meeting with President-elect Donald Trump at his Mar-a-Lago resort in Palm Beach, Florida. According to Trump, these investments in artificial intelligence infrastructure are expected to create 100,000 jobs.

This pledge doubles the 50,000 jobs initially promised by Son after Trump’s victory in 2016, when SoftBank committed to investing $50 billion in the U.S.

Son is known for making bold business decisions and has significant investments in numerous Silicon Valley startups and major companies like semiconductor design firm Arm and Chinese e-commerce giant Alibaba. While the recent stock market rally and the growing popularity of AI have increased the value of SoftBank’s assets, it remains uncertain if the projected job creation will be realized. SoftBank’s investments have had mixed results in the past.

The company’s $18.5 billion investment in the co-working space provider WeWork, which filed for bankruptcy protection last year, and the failed robot pizza-making company Zume are examples of investments that did not pay off.

SoftBank’s bold U.S. investment promise

Despite these setbacks, Son remains a pivotal influencer in global tech investments.

SoftBank’s Vision Funds, supported by investors like the Saudi Arabian and Abu Dhabi sovereign wealth funds, have invested in hundreds of companies across various sectors. Son has previously expressed his belief that artificial intelligence will surpass human intelligence within a decade, revolutionizing numerous industries. However, it remains uncertain whether these AI advancements will result in massive job creation as promised.

Japanese officials have praised Son’s $100 billion initiative, viewing it as a supportive gesture during a time of trade tension concerns. Yoji Muto, Japan’s Trade and Industry Minister, expressed optimism that the collaborative investments would strengthen Japan-U.S. economic relations. Skepticism remains about the actual economic benefits of Son’s planned investment, given SoftBank’s history of investments under Trump’s first term, where tangible results in job creation were ambiguous despite grand promises.

The focus remains on whether this announcement will translate into real economic growth or if it will follow the path of previous overpromised and underdelivered corporate investments.