SoftBank Acquires Ohio Plant for Stargate AI Initiative

SoftBank Group Corp. has acquired Foxconn Technology Group's electric vehicle (EV) plant in Lordstown, Ohio, as part of its efforts to advance the $500 billion Stargate Project, an initiative aimed at enhancing artificial intelligence (AI) infrastructure across the United States.

The Stargate Project, announced by President Donald Trump in January 2025, is a collaborative venture involving OpenAI, SoftBank, Oracle, and MGX. The initiative plans to invest up to $500 billion over the next four years to build AI infrastructure in the United States. The project aims to secure American leadership in AI, create hundreds of thousands of American jobs, and generate significant economic benefits globally. SoftBank's CEO, Masayoshi Son, serves as the chairman of Stargate.

The Lordstown facility has a storied history. Originally operated by General Motors, it was later sold to EV startup Lordstown Motors, which faced challenges in scaling production and eventually sold the site to Foxconn. Now, under SoftBank's ownership, the plant is expected to be transformed into a major data center hub as part of the Stargate Project.

SoftBank's aggressive investments in AI have significantly impacted its financial performance. The company reported a net profit of 421.8 billion yen ($2.87 billion) for the April-June quarter of 2025, a substantial turnaround from a loss during the same period the previous year. This performance was bolstered by heavy investments in AI, including a $30 billion commitment to OpenAI and a leading role in the Stargate data center project. Improved valuations of its tech portfolio also lowered SoftBank's loan-to-value ratio to 17%, enhancing its financial standing.

The Stargate initiative is projected to create over 100,000 jobs in the United States, contributing to the re-industrialization of the country. By investing heavily in AI infrastructure, the project aims to position the U.S. as a global leader in AI development, potentially outpacing competitors like China. This strategic move underscores the geopolitical significance of AI dominance and its implications for national security and economic strength.

During the announcement of the Stargate Project, President Donald Trump emphasized the initiative's importance, stating that it would "secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world." He also indicated plans to use emergency declarations to expedite the project's development, particularly concerning energy infrastructure.

The Stargate Project represents one of the largest AI infrastructure investments in history. While previous initiatives have aimed to bolster AI capabilities, the scale and scope of this project are unprecedented. The collaboration between major tech companies and the U.S. government highlights a concerted effort to maintain technological superiority in the rapidly evolving AI landscape.

SoftBank's acquisition of Foxconn's Ohio plant marks a significant step in the development of the Stargate Project, reflecting a strategic move to enhance AI infrastructure in the United States. This initiative not only aims to secure technological leadership but also promises substantial economic and social benefits, including job creation and industrial revitalization. As the project progresses, it will be crucial to monitor its impact on the global AI landscape and the broader geopolitical dynamics.