Japanese billionaire Masayoshi Son, CEO of SoftBank Group, recently made waves by announcing a $100 billion investment in the United States, promising to create 100,000 new jobs in emerging technologies such as artificial intelligence (AI). The announcement came during a high-profile meeting with President-elect Donald Trump at Trump’s Mar-a-Lago resort in Palm Beach, Florida.
While the declaration sounds promising, history suggests a need for caution. Such grandiose pledges—often rich in spectacle—frequently fall short of delivering real, long-term value to the economy. For SoftBank and Son, this isn’t the first time they’ve unveiled bold U.S. investment plans. But as past examples demonstrate, these announcements often encounter complex economic realities.
What SoftBank Promises and Trump’s Vision
At the heart of this announcement is Trump’s effort to project confidence in America’s economic resurgence as he prepares for another presidential term. Masayoshi Son’s pledge includes massive funding toward AI and other cutting-edge technologies, aligning perfectly with the global race to dominate innovation in this sector.
SoftBank Group, despite its “bank” moniker, operates as a powerful international tech investment firm. Known for its investments through its Vision Fund, the company has backed industry giants such as Alibaba and other transformative startups. However, SoftBank’s history reveals mixed results when it comes to achieving promises on job creation and economic revitalization.
Similar Promises That Fell Short
This situation mirrors other high-profile announcements made in Trump’s first term that generated immense media coverage but fell short of expectations. One notable example involves Taiwanese electronics manufacturer Foxconn. In 2017, Foxconn pledged to build a $10 billion factory in Wisconsin, creating 13,000 jobs. The project was hailed as a symbol of America’s manufacturing revival.
However, Foxconn significantly scaled back its plans. By 2021, its investment shrank to just $672 million, with job projections reduced to fewer than 1,500 positions. Although Foxconn continues to operate in Wisconsin, the ambitious project Trump once touted as a “game changer” for American industry never fully materialized. Today, the facility is being repurposed into a Microsoft data center focusing on AI and workforce training.
SoftBank has also navigated similar waters. In 2016, ahead of Trump’s first term, Masayoshi Son pledged a $50 billion investment with plans to create 50,000 jobs. The investment included backing OneWeb, a satellite startup poised to compete with Elon Musk’s Starlink. Despite SoftBank’s financial input, OneWeb filed for bankruptcy in 2020 after laying off most of its workforce. The company was eventually acquired by a French satellite operator, highlighting how such projects can unravel despite high hopes.
The Reality of Big Announcements
Grand promises from CEOs standing beside presidents are nothing new. Former President Barack Obama experienced a similar situation in 2009 when he promoted his $800 billion economic stimulus plan. Speaking to Caterpillar employees, Obama expressed optimism that the stimulus package could protect jobs. Despite his assurances, the company proceeded with thousands of layoffs, citing delays in economic recovery.
However, not all of these announcements end in disappointment. In 2017, Intel pledged to invest $7 billion to restart construction of a semiconductor factory in Arizona. The project was successful, with the factory opening its doors in 2020, bringing high-value manufacturing jobs to the region.
Masayoshi Son’s Track Record Raises Questions
Masayoshi Son’s reputation as a visionary investor is undeniable. He famously bet on companies like Yahoo and Alibaba in their early days, reaping enormous returns. Yet SoftBank’s Vision Fund, launched in 2017, has had its share of setbacks, raising concerns about the feasibility of Son’s latest U.S. investment plans.
For instance:
- WeWork: SoftBank invested billions in WeWork, the coworking startup that eventually filed for bankruptcy after its business model proved unsustainable.
- Wirecard: SoftBank also poured funds into Wirecard, a German payments company that collapsed amid a global fraud investigation.
These missteps underscore the risk of investing in speculative technologies and startups, even under the guidance of a seasoned investor like Son.
The Bigger Picture: Politics and Influence
Beyond economics, Son’s announcement also carries political undertones. High-profile business leaders often aim to curry favor with incoming administrations. By aligning themselves with Trump, billionaires like Son hope to secure goodwill, favorable policies, or avoid being on the “naughty list.” Others, including Amazon founder Jeff Bezos, Meta CEO Mark Zuckerberg, and OpenAI’s Sam Altman, have contributed significant sums to Trump’s inauguration fund, a move seen as a strategic attempt to foster amicable relations.
Conclusion: Optimism Meets Reality
Masayoshi Son’s $100 billion pledge to invest in America and create 100,000 jobs is undoubtedly ambitious. It resonates with Trump’s agenda to promote economic growth, technological innovation, and job creation. However, history offers a sobering reminder that such announcements are often heavy on promises but light on measurable outcomes.
While SoftBank’s investment could yield significant progress in AI and emerging technologies, skepticism is warranted given its track record and past shortfalls. For now, this announcement serves as another chapter in the ongoing narrative of political spectacle and economic ambition.
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