SoftBank Supercharges Stargate Project with the Purchase of Foxconn’s Ohio Plant

Japanese investor SoftBank Group is acquiring Foxconn-owned electric vehicle factory in Ohio. According to Yahoo Finance, SoftBank’s buys Foxconn Ohio plant enabling the investor to launch its Stargate data center.

Driving Private Sector Investor in AI

The SoftBank Stargate AI project is a $500 billion private sector investment in AI infrastructure. The Project was announced by US President Donald Trump in January 2025 and is funded by Oracle, OpenAI, and SoftBank. The project is expected to create 100,000 jobs in the US.

Beyond building data centers, the Stargate initiative is about establishing a comprehensive AI ecosystem. This ecosystem includes design of advanced chips that are critical in supporting next-gen AI models and generating compute power.

Through the leadership of its CEO Masayoshi Son, SoftBank has emphasized Stargate’s important role in securing American leadership in the AI race. These sentiments were echoed by Oracle’s Larry Ellison and OpenAI’s Sam Altman during the announcement by President Donald Trump.

US AI Data Center Expansion

The latest acquisition marks a significant step in SoftBank’s move towards establishing a robust AI infrastructure network across the US. It aligns well with the company’s broader vision of leading the global AI race. The project is aimed at transforming the US tech industry into an AI innovation powerhouse.

SoftBank’s decision to buy Foxconn’s Ohio facility comes soon after the tech investor experienced challenges in raising a viable financial plan for the Stargate project. Foxconn is one of Apple’s semiconductor suppliers. By acquiring its facility, SoftBank hopes to leverage the expertise and infrastructure of the Taiwanese company to supercharge its data center ambitions.

Foxconn had designed its Ohio production plant for electric vehicle manufacturing. Following the acquisition, SoftBank will repurpose the facility into a data center. This move points to the rising convergence between AI infrastructure and advanced manufacturing.

SoftBank’s acquisition highlights the company’s strategy to repurpose current industrial assets to meet rising demand for computational power driven by AI systems. In March 2025, SoftBank partnered with OpenAI to acquire a plant previously owned by electronics firm Sharp in Sakai city, Osaka in Japan with the aim of converting it into an AI data center.

SoftBank-Foxconn Partnership History

SoftBank’s purchase of the Foxconn plant aligns with its previous investments in the AI industry. SoftBank and Foxconn have worked together before, including undertaking a joint project in 2017. This history of working together could make the latest deal smoother. The Ohio plant is in a good location and already has useful infrastructure. This makes it a smart choice for SoftBank as it looks to grow its AI capabilities quickly.

The Stargate project is bigger than Ohio. There are plans to build data centers in several states, starting with a large one in Abilene, Texas, which is already being built. This shows how important it is to increase computing power to keep up with fast-moving AI developments.

Tech leaders have warned that a lack of infrastructure could slow progress. With SoftBank’s funding, OpenAI’s experience, and Oracle’s technology, Stargate could become a key part of the US AI strategy. But its success will depend on solving funding issues and dealing with a complex market.