Donald Trump and Masayoshi Son, head of Softbank, have a long-standing financial alliance that began after Trump’s 2016 election, with Son pledging to invest $100 billion to create at least 100,000 jobs in the U.S. This partnership emphasizes advancements in technology, particularly artificial intelligence. Son, known for his bold entrepreneurial moves, has rebounded from past setbacks and is now focusing on AI startups, with Softbank’s outlook improving, reflecting renewed optimism in the business landscape.
The Financial Alliance Between Trump and Son
Donald Trump and Japanese entrepreneur Masayoshi Son share a longstanding connection, primarily centered around substantial financial investments. Following Trump’s initial presidential victory in 2016, Son, the head of the technology investment powerhouse Softbank, was among the first business leaders to engage with him. At that time, Son committed to investing $50 billion. Fast forward eight years, and he has now amplified that promise to an impressive $100 billion.
Investment Plans and Global Impact
During a notable gathering at Trump’s Mar-a-Lago golf resort shortly before Christmas, Trump announced this significant investment initiative, which aims to generate a minimum of 100,000 jobs in the United States. He hailed Son as one of the “greatest people,” emphasizing that this landmark investment reflects a strong endorsement of America’s future. This capital infusion is set to fuel advancements in artificial intelligence and other groundbreaking technologies within the U.S.
In return, Son expressed his growing confidence in the American economy, attributing his optimism to Trump’s leadership. This investment endeavor marks a triumphant return for Son, a figure often seen as an enigmatic Japanese business icon. Known for his bold entrepreneurial spirit, Son has always positioned Softbank as both a traditional company and a financial investment entity.
Son’s career has been characterized by his ability to traverse cultural divides. He operates effectively in Japan, Silicon Valley, and China, often taking unconventional routes that challenge norms. As noted by author Lionel Barber, Son’s unique blend of humility and audacity, combined with a willingness to embrace risk, allows him to engage with influential figures worldwide.
Son’s entrepreneurial journey began in his youth as the son of Korean immigrants in Japan. He boldly sought out mentorship from Den Fujita, a prominent Japanese executive, demonstrating his tenacity. After his cold call attempts failed, he took the initiative to fly to Tokyo and knock on Fujita’s door, ultimately receiving invaluable advice that set him on a path toward success in technology.
After relocating to California against his family’s wishes, Son graduated high school and pursued a degree in computer science. He quickly made his first million by selling a patent for an electronic translator and importing Japanese video games. With a vision for the future, Son established Softbank in 1981 as a distributor of computer software and magazines, later expanding into investments aimed at revolutionizing the tech landscape.
Son faced numerous hurdles, including the dot-com bubble burst in the late 1990s, which drastically reduced his wealth. Yet, his resilience saw him bounce back, particularly after investing in Alibaba, which played a pivotal role in his financial resurgence. He expanded his portfolio by acquiring mobile networks and high-profile tech companies, including British chip designer Arm, solidifying Softbank’s wealth.
In 2016, when meeting Trump, Son was strategizing his next major investment efforts, culminating in the Softbank Vision Fund—an enormous $100 billion initiative that positioned him as a leading global tech investor. Despite facing setbacks, including the WeWork fiasco and the downturn in tech stocks during the COVID-19 pandemic, Son’s determination to innovate never wavered.
As he pivots to focus on artificial intelligence startups, the outlook for Softbank is improving. In the first half of its fiscal year ending in September, the Vision Funds returned to profitability, signaling potential recovery. Trump’s recent discussions hinted at the possibility of doubling Softbank’s investment commitment to $200 billion, showcasing renewed optimism.
Moody’s rating agency has also adjusted its perspective on Softbank, moving the outlook from “stable” to “positive,” despite the company’s previous downgrade to junk status. This shift suggests that Son is regaining his footing in the business world. The pressing question remains whether he can sustain this momentum or face another downturn, especially with the looming risk of an AI bubble burst.