Latest news with #Arizona
Japan Times
an hour ago
- Business
- Japan Times
Masayoshi Son pitches $1 trillion U.S. AI hub to TSMC and Trump team
SoftBank Group founder Masayoshi Son is seeking to team up with Taiwan Semiconductor Manufacturing Co. to realize what could be his biggest bet yet — a trillion-dollar industrial complex in Arizona to build robots and artificial intelligence. Son envisions a version of the vast manufacturing hub of China's Shenzhen that would bring back high-tech manufacturing to the U.S., according to people familiar with the billionaire's thinking. The park may comprise production lines for AI-powered industrial robots, they said, asking not to be named as the plan remains private. SoftBank officials are keen to have the Taiwanese maker of Nvidia's advanced AI chips play a prominent role in the project, although it's not clear what part Son sees for TSMC, which already plans to invest $165 billion in the U.S. and has started mass production at its first Arizona factory. Nor is it clear that TSMC would be interested. A person familiar with the chipmaker's thinking said that SoftBank's project has no bearing on TSMC's plans in Phoenix. Codenamed "Project Crystal Land,' the Arizona complex represents the 67-year-old SoftBank chief's most ambitious attempt in a career that's spanned numerous bet-the-house bids, thousands-fold-returns and billions of dollars in losses. Son, who's often expressed disappointment in his own legacy, has repeatedly said he means to do everything he can to hurry AI development. SoftBank officials have spoken with U.S. federal and state government officials to discuss possible tax breaks for companies building factories or otherwise investing in the industrial park, including talks with U.S. Secretary of Commerce Howard Lutnick, the people said. The Japanese billionaire is also personally sounding out interest among an array of tech companies, they said. The project has been floated to executives at South Korea's Samsung Electronics, they said. Shares of SoftBank rose 2.7% Friday. TSMC's stock price rose 1.9%, while Samsung's gained 0.5%. Representatives of SoftBank, TSMC and Samsung declined to comment. A Commerce Department spokesperson did not immediately respond to a request for comment. SoftBank's attempts to get businesses investing in a U.S. industrial park follow signs that its campaign alongside ChatGPT-maker OpenAI to raise hundreds of billions of dollars for U.S. data centers is moving slower than initially expected. Crystal Land would need to address crucial details, such as whether there's demand and funding on par with its grandiose scale, to become reality. Son has pulled together a list of SoftBank Vision Fund portfolio companies that might take part in the Arizona manufacturing hub, the people said. SoftBank-backed startups working on robotics and automation technologies — such as Agile Robots — may set up production facilities at the industrial complex, they said. The plans are preliminary and feasibility hinges on support from the White House and state officials. While the cost of the project as envisioned by Son may require as much as $1 trillion to execute — a sum previously reported by the Nikkei — the actual scale depends on interest from big technology companies. If successful, Son has floated building multiple cutting-edge industrial parks across the U.S. SoftBank is exploring the Arizona project as it also moves forward on plans to invest as much as $30 billion into OpenAI and plans a $6.5 billion acquisition of Ampere Computing. It's also seeding money into the Stargate venture with OpenAI, Oracle and Abu Dhabi's MGX, although it aims to get the bulk of the money for building data centers around the world from outside investors. Those outlays come as SoftBank's cash stood at ¥3.4 trillion ($23 billion) at the end of March. The Tokyo-based company has since tapped its T-Mobile U.S. stake, selling roughly a quarter of what it held in March to raise $4.8 billion this month. SoftBank also has net assets valued at ¥25.7 trillion, of which chip designer Arm Holdings makes the single largest portion, allowing it to borrow billions more as needed. SoftBank is exploring project financing for Stargate data centers, a model that could be adapted to a big endeavor like Crystal Land. Common for large-scale infrastructure like oil or gas pipelines, the project finance template would allow the tech investor to raise funding on a project-by-project basis and require less money upfront. Son's restless search for growth has resulted in projects that proceed in fits and starts, making it difficult to gauge how committed he is to any one venture. The billionaire is often goaded by the desire to boost SoftBank's stock price and repay retail investors who've held onto the company's shares from before the dot-com boom and bust, people close to the SoftBank chief have said. Many investors have waited for decades for the stock to regain dot-com bubble levels — something it's flirted with only a few times since 2020. If Son's primary motivation is to clear the way for AI, it may be more cost-efficient to encourage partnerships that link manufacturing expertise with that of AI engineers and specialists in fields from medicine to robotics, and incubating smaller companies, according to Melissa Otto, head of research at Visible Alpha. But pouring cash into data centers may help lower the cost of developing AI applications and spur broader adoption, she said. "He's a long-term thinker, and he takes risks,' Otto said. "It's just too early to tell.'
Yahoo
an hour ago
- Business
- Yahoo
SoftBank Plots $1 Trillion AI Hub With TSMC, Trump
SoftBank (SFTBY) is plotting a $1 trillion AI hub in Arizona alongside TSMC (NYSE:TSM) and the Trump administration to onshore advanced manufacturing, Bloomberg reported. The proposaldubbed Project Crystal Landwould mirror Shenzhen's industrial park model by hosting AI-powered robot assembly lines and high-tech chip fabrication facilities. Warning! GuruFocus has detected 7 Warning Signs with COIN. Son has held talks with Commerce Secretary Gina Raimondo on tax incentives for companies that set up shop there, and has quietly approached Samsung and Vision Fund portfolio firms about establishing factories within the complex. SoftBank's own Vision Fund led a $40 billion funding round in OpenAI earlier this year, signaling its appetite for deepening U.S. AI ties, and SFTBY shares are up 3.4% year-to-date, reflecting investor enthusiasm for the vision. Despite the fanfare, TSMC's exact role remains unconfirmed, and much hinges on federal sign-off under President Trump's industrial revival agenda and support from Arizona's state government. Son's pitch aligns with Washington's push to reduce reliance on overseas supply chains, but critics caution that building a trillion-dollar ecosystem from scratch could face hurdles from local regulators, labor shortages and capital intensity. Still, if SoftBank secures carve-outs on corporate taxes and streamlined permitting, Project Crystal Land could set a new benchmark for tech reshoring. Why it matters: Investors should watch for government backing and corporate commitments that will drive SoftBank's capital allocation and influence SFTBY's growth trajectory in the U.S. AI market. Closing: Market participants will be looking for formal announcements on tax-break packages and partnering agreements as Son's plan moves from pitch to planning. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Business
- Yahoo
SoftBank Plots $1 Trillion AI Hub With TSMC, Trump
SoftBank (SFTBY) is plotting a $1 trillion AI hub in Arizona alongside TSMC (NYSE:TSM) and the Trump administration to onshore advanced manufacturing, Bloomberg reported. The proposaldubbed Project Crystal Landwould mirror Shenzhen's industrial park model by hosting AI-powered robot assembly lines and high-tech chip fabrication facilities. Warning! GuruFocus has detected 7 Warning Signs with COIN. Son has held talks with Commerce Secretary Gina Raimondo on tax incentives for companies that set up shop there, and has quietly approached Samsung and Vision Fund portfolio firms about establishing factories within the complex. SoftBank's own Vision Fund led a $40 billion funding round in OpenAI earlier this year, signaling its appetite for deepening U.S. AI ties, and SFTBY shares are up 3.4% year-to-date, reflecting investor enthusiasm for the vision. Despite the fanfare, TSMC's exact role remains unconfirmed, and much hinges on federal sign-off under President Trump's industrial revival agenda and support from Arizona's state government. Son's pitch aligns with Washington's push to reduce reliance on overseas supply chains, but critics caution that building a trillion-dollar ecosystem from scratch could face hurdles from local regulators, labor shortages and capital intensity. Still, if SoftBank secures carve-outs on corporate taxes and streamlined permitting, Project Crystal Land could set a new benchmark for tech reshoring. Why it matters: Investors should watch for government backing and corporate commitments that will drive SoftBank's capital allocation and influence SFTBY's growth trajectory in the U.S. AI market. Closing: Market participants will be looking for formal announcements on tax-break packages and partnering agreements as Son's plan moves from pitch to planning. This article first appeared on GuruFocus.
Washington Post
2 hours ago
- Washington Post
Retired firefighter finds new hobby: Rescuing hikers on mountain trails
John Zeto Jr. thought he had put his career as a first responder behind him. But then he heard the echo of gunshots on an Arizona mountain trail. Zeto followed the sound to a man asleep under a bush who had fired the bullets as a distress signal. Colt Johnson was out of water and suffering heatstroke, having accepted he was going to die.
Bloomberg
2 hours ago
- Business
- Bloomberg
Oil Fluctuates On Trump Two-Week Iran Buffer; SoftBank's AI Bet
US equity futures decline ahead of a $6.5 trillion triple witching event. Oil swings, looking to pare some of the week's gains on news that President Trump is backing down from an imminent strike on Iran, opting instead to wait two weeks to allow time for a diplomatic solution to the conflict with Israel. SoftBank has plans for a $1 trillion AI complex in Arizona. Texas lawmakers call for a delay to Tesla's robotaxi rollout. Seema Shah of Principal Asset Management says the Federal Reserve runs the risk of making a policy mistake if it hikes or cuts the rate too soon. Priya Misra of JPMorgan Asset Management says the Treasury curve is offering a good level of yield currently. 'Bloomberg Brief' delivers the market news, data and analysis you need to set your agenda. (Source: Bloomberg)
