SoftBank Acquires Foxconn Ohio Plant for Stargate AI Expansion

Generated by AI AgentCoin World
Friday, Aug 8, 2025 11:41 am ET2min read
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Aime RobotAime Summary

- SoftBank acquires Foxconn's Ohio EV plant for $375M to repurpose it as AI server production under its $500B Stargate initiative.

- The facility, partnered with OpenAI and Oracle, aims to create 100,000+ U.S. jobs but faces delays due to funding and site selection challenges.

- Foxconn separately co-invests $735M with SoftBank in a U.S. data center venture, though the Ohio deal's inclusion remains unclear.

- Analysts view the move as a strategic push to overcome financial hurdles, despite competition from Chinese AI models and U.S. tariffs.

- The acquisition aligns with broader tech industry trends, leveraging Oracle's $30B cloud/AI investment to advance U.S. AI infrastructure.

SoftBank Group has acquired Foxconn Technology Group’s former electric vehicle (EV) plant in Lordstown, Ohio, for $375 million as part of its

Stargate
AI data center initiative. The facility will be repurposed for AI server production and is expected to play a central role in the broader $500 billion project, which involves partnerships with OpenAI and
Oracle
. The move comes as SoftBank seeks to overcome recent challenges in securing funding for the ambitious initiative and aligns with its strategic pivot toward AI infrastructure [2].

The Stargate project, first announced by U.S. President Donald Trump in January 2025, aims to establish AI data centers across the United States, potentially creating more than 100,000 jobs. However, the project has faced delays for six months, with SoftBank struggling to finalize site selections and secure consensus among its partners. The Ohio site is one of several locations under consideration, with factors such as water availability, power supply, and telecom infrastructure playing a key role in the decision-making process [4].

Foxconn, which previously used the Ohio plant for EV manufacturing, is also involved in a separate $1.47 billion joint venture with SoftBank to establish a data center and manufacturing facility in the U.S. The two companies have each contributed $735 million to that initiative, though it remains unclear whether the Ohio plant acquisition is part of the broader partnership. Foxconn declined to comment on the specifics of the SoftBank deal, citing the private nature of the transaction [3].

Analysts suggest that the acquisition could signal a renewed push to advance the Stargate initiative. According to CNBC’s Jim Cramer, the move demonstrates SoftBank’s commitment to overcoming financial hurdles and reinvigorating the stalled project. However, the success of the plan will depend on how quickly SoftBank can finalize site selection and secure additional partnerships. The Ohio plant is expected to become the center of Stargate’s U.S. rollout and will host both AI server manufacturing and data center operations [5].

The Stargate project has also faced external pressures, including the emergence of cheaper AI model alternatives from China’s DeepSeek and the impact of U.S. tariffs. These factors have complicated SoftBank’s ability to develop a sustainable pricing model for its AI infrastructure, further delaying the project’s timeline. Despite these challenges, the company remains optimistic about the long-term potential of AI computing and has emphasized its alignment with broader U.S. economic incentives [1].

SoftBank’s investment in the Ohio plant reflects a broader trend in the tech industry, where companies are expanding their physical infrastructure to meet the growing demand for AI processing power. With Oracle recently committing $30 billion to its cloud and AI initiatives, the Stargate project is positioned to leverage key industry players to drive large-scale AI development in the U.S. [4].

While details on the timeline for the Ohio site’s operational readiness remain unspecified, SoftBank’s move underscores its confidence in the future of AI and its role in shaping the next phase of the digital economy.

Source: [1] Oracle inks $30 billion cloud deal, continuing its strong push into AI infrastructure (https://onmine.io/oracle-inks-30-billion-cloud-deal-continuing-its-strong-push-into-ai-infrastructure/)

[2] SoftBank reportedly buys Foxconn's Ohio plant in a $375M deal (https://www.cryptopolitan.com/softbank-reportedly-buys-foxconns-ohio/)

[3] SoftBank Buys Foxconn's Ohio Plant to Jumpstart Stargate AI Push (https://www.bloomberg.com/news/articles/2025-08-08/softbank-buys-foxconn-s-ohio-plant-to-jumpstart-stargate-ai-push?srnd=ai-ethics-law-policy)

[4] SoftBank acquires Foxconn's Ohio EV plant to power $500B Stargate AI infrastructure push (https://techstartups.com/2025/08/08/softbank-acquires-foxconns-ohio-ev-plant-to-power-500b-stargate-ai-infrastructure-push/)

[5] SoftBank Buys Foxconn's Ohio Plant to Boost Stargate AI Push (https://finance.yahoo.com/news/softbank-buys-foxconn-ohio-plant-100208420.html)