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Ohio, USA â August 2025
SoftBank Group has officially acquired a manufacturing facility in Ohio from Taiwanese tech giant Foxconn, marking a strategic move to accelerate the development of AI data centre infrastructure under the ambitious Stargate initiativeâa $500 billion joint venture unveiled by former U.S. President Donald Trump.
đ Transaction Overview
- Acquisition Value: $375 million
- Seller: Foxconn Technology Group
- Buyer: SoftBank Group Corp.
- Facility Use: Formerly used for electric vehicle (EV) production; now repurposed for AI data centre equipment manufacturing
Foxconn Chairman Young Liu confirmed the sale, stating that Foxconn will continue to operate the facility on behalf of SoftBank. The two companies have reportedly collaborated on the Stargate project for the past six months.
đ Stargate: A Global AI Infrastructure Vision
Launched in January, Stargate is a high-profile joint venture involving:
- OpenAI (AI research and development)
- SoftBank (capital and infrastructure)
- Oracle (cloud and data services)
The initiative aims to build a robust AI infrastructure across the United States, with SoftBank pledging up to $100 billion in investment. The Ohio facility was selected for its access to critical resourcesâland, electricity, water, and telecom networksâessential for hosting large-scale data operations.
â ď¸ Challenges and Global Implications
Despite its scale, Stargate faces headwinds:
- Trade tensions: U.S. tariffs have complicated supply chains
- Competition: Emerging low-cost AI models from China
- Financing concerns: Raised by Elon Musk and other industry leaders
đ African Relevance
While Stargate is U.S.-centric, its ripple effects are global. African nations, increasingly investing in digital infrastructure and AI capabilities, may find strategic opportunities in:
- Technology transfer: Leveraging partnerships with SoftBank and Oracle
- Investment channels: Attracting AI-related capital into African data hubs
- Policy alignment: Preparing regulatory frameworks for AI integration
As global AI infrastructure expands, Africaâs role in shaping equitable and inclusive digital futures becomes ever more critical.
Softbank ceo Masayoshi Son Picture by Tradersunion
