SoftBank’s Masayoshi Son abandons $50 billion Switch takeover in setback for US AI data centre plans

SoftBank Group CEO Masayoshi Son

• SoftBank ends talks to acquire US data centre operator Switch Inc
• Deal collapse leaves SoftBank's US AI infrastructure strategy uncertain
• SoftBank may pursue a smaller investment or partnership with Switch

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SoftBank Group chairman and founder Masayoshi Son has reportedly walked away from plans to acquire US data centre operator Switch Inc, ending months of talks around what would have been one of the largest deals in SoftBank’s history. According to a report by Bloomberg, discussions over an acquisition valued at around $50 billion have been halted, dealing a blow to Son’s ambitions to rapidly scale AI infrastructure in the US.

People familiar with the matter told Bloomberg that SoftBank had been pursuing the Switch deal for several months. Son reportedly believed that owning Switch’s network of energy-efficient data centres would provide a strong foundation for the Stargate AI initiative, a large-scale effort aimed at boosting US computing capacity for advanced artificial intelligence workloads.

The Stargate project has been positioned as a cornerstone of America’s AI infrastructure push. In January 2025, shortly after Donald Trump was sworn in, Son publicly pledged to deploy $100 billion “immediately” alongside partners including OpenAI, Oracle, and Abu Dhabi-based investment firm MGX. Analysts believed that acquiring Switch would have significantly accelerated Stargate’s ability to roll out large-scale data centre capacity across the US.

Bloomberg Intelligence analysts Kirk Boodry and Chris Muckensturm noted that the collapse of talks leaves SoftBank’s data centre strategy uncertain. In their view, a partial investment or partnership would not provide the same level of operational control that SoftBank has traditionally sought in sectors such as semiconductors and physical AI infrastructure.

Reports suggest that concerns within SoftBank played a role in the decision to step back. Some executives were reportedly wary of the sheer size of the transaction, as well as the complexity of operating large data centre campuses spread across multiple US cities, including Las Vegas and Atlanta. Earlier this month, Son is said to have conceded internally that a full acquisition was unlikely and subsequently cancelled a planned announcement that had been expected in January.

While the takeover is now off the table, discussions between SoftBank and Switch are not believed to be over entirely. Sources indicate that the two companies are still exploring options for a smaller strategic investment or a partnership, though such arrangements would fall short of the control Son had originally envisioned.

The stalled deal comes amid SoftBank’s aggressive push into artificial intelligence over the past year. The Tokyo-based group has dramatically increased its exposure to the sector, including taking an 11 percent stake in OpenAI after injecting $22.5 billion in December 2025 alone. SoftBank has also acquired US chip designer Ampere Computing for $6.5 billion and announced a $5.4 billion deal to buy the robotics unit of ABB.

To fund these investments, SoftBank has reshaped its portfolio. The company has sold down shares in T-Mobile US and exited its entire stake in Nvidia to free up capital for AI-focused bets. It is also exploring additional liquidity options, including potential asset sales, a PayPay initial public offering, and margin loans backed by its stake in Arm Holdings.

For Masayoshi Son, the abandoned Switch acquisition underscores both the scale of his AI ambitions and the practical limits of executing them. While SoftBank remains heavily committed to AI infrastructure, the failure to secure a flagship US data centre acquisition highlights the challenges of turning bold visions into operational reality. Whether a partnership can meaningfully advance Stargate’s goals remains an open question.