Trump secures $100 billion investment in America from Japan’s SoftBank

[Donald Trump]
We’re going to go full prosperity and to build the greatest economy the world has ever seen, just as we had just a short time ago.

Simone Del Rosario: More than a month before taking office, President-elect Donald Trump secured a massive international investment.

[Donald Trump]
Today, I’m thrilled to announce that Softbank will be investing $100 billion in America, creating 100,000 American jobs at a minimum.

[Simone Del Rosario]

Trump and Softbank Group CEO Masayoshi Son announced the commitment at an event at Mar-a-Lago on Monday.

[Masayoshi Son] My confidence level to the economy of the United States has tremendously increased with his victory.

[Simone Del Rosario] The connection between the Japan-based firm and Trump goes back to Trump’s first term. When Trump was elected in 2016, Son pledged to invest $50 billion in startups that would create 50,000 jobs. That investment actually ended up being closer to $75 billion, according to CNN.

[Masayoshi Son] This is double of last time, as President Trump said, because I say, oh, President Trump is a double down, President I’m going to have to double down, you know, 100 billion dollars and 100,000 jobs.

[Simone Del Rosario] Softbank says the investment will be used to create jobs in A.I. and other emerging technologies. They say the projects will be complete before the end of Trump’s term.

[Donald Trump] I’m going to ask him right now, would you make it $200 Billion

[Masayoshi Son] Well… my promise is 100, but you know he’s now asking to do more. I think you know, with your leadership, my partnership with you, with your support, I will, I will try to make it happen

[Donald Trump] Alright, $200 billion.

[Simone Del Rosario] Softbank is an investment management company, and Son has been pushing for more investment in AI. He’s keen on funding areas tied to AI tech, including data centers and semiconductor manufacturing, according to the Wall Street Journal.

In November, Son said, “A gold rush of intelligence has arrived. The one who goes fastest will win.”

As for getting to that $100 billion promise, Softbank currently only has $30 billion in cash on hand, according to the Journal. But CNBC says Softbank could be looking to raise new money from a number of sources, including the Vision Fund.

The Vision Fund is a $100 billion venture capital fund, with nearly half coming from Saudi Arabia’s Public Investment Fund. One of its most high-profile setbacks was a $4.6 billion hit in 2019 from its WeWork investment. But Son remained steadfast.

As is the president-elect, whose moves to push forward economic growth include concessions for those making big investments.

Donald Trump: Any business that invests $1 billion or more in the United States will be eligible for fully expedited permits and approvals, including environmental approvals from the federal government.

Simone Del Rosario: Trump even reiterated a promise to cut tax rates for businesses that make products in America to 15%.

Donald Trump: I’ve had the smartest people in Wall Street call me. They said, where do you get that idea? And it doesn’t seem that complicated, right? It’s like the paper clip. Nobody ever thought of it. One guy thought of it. Everybody looked at it. They said, Wow, that was a good idea. Why didn’t I think of it?