Key Points
- SoftBank is considering buying data center operator Switch Inc. for around $50 billion.
- The move is part of Masayoshi Son’s strategy to capitalize on the AI infrastructure boom.
- SoftBank is also in talks to acquire DigitalBridge, a key investor in Switch.
- The potential deal is part of a larger spending spree, including the “Stargate” project and other AI investments.
Japanese tech giant SoftBank is exploring a massive deal to buy data center operator Switch Inc., a move that would deepen its push into the booming artificial intelligence industry. The potential acquisition is part of founder Masayoshi Son’s aggressive new strategy to secure a major role in the digital infrastructure that powers AI.
Son sees data centers as a key bottleneck in the AI race, and owning a major player like Switch would give him significant control. The deal won’t be cheap. Switch’s owners, which include investment firm DigitalBridge, are reportedly seeking a valuation of around $50 billion.
As a backup plan, they are also preparing for a potential initial public offering (IPO) early next year.
This potential acquisition is just one piece of a much larger AI strategy for SoftBank. Son has been on a spending spree, announcing a $500 billion “Stargate” data center project with OpenAI and buying U.S. chip designer Ampere Computing.
After missing the initial AI stock rally that made Nvidia a titan, Son is now aggressively investing billions to secure a leading role in the industry’s future.
SoftBank is also reportedly in talks to acquire DigitalBridge Group, one of Switch’s main private equity backers, which would give it deep sector expertise. While no final agreement has been reached, and the deal could still fall through, investors are cheering Son’s new focus. SoftBank’s shares have nearly doubled this year, showing strong market support for its AI ambitions.
