SoftBank Group is preparing to allocate up to $1 trillion to construct artificial intelligence-powered factories in the United States, aimed at supporting domestic manufacturers impacted by a nationwide labor shortage. The facilities are expected to be established in various industrial parks and will utilize robotics technology designed to handle a range of production tasks. This long-term initiative signals the Japanese firm’s expanded focus on AI-driven automation in manufacturing, potentially altering the workforce structure in key industrial regions. The move follows SoftBank’s earlier AI infrastructure investments and reflects its strategic pivot toward robotics and large-scale automation.
SoftBank has previously announced substantial U.S.-focused commitments, including a $100 billion investment targeting AI infrastructure, as stated in 2023. The latest $1 trillion figure significantly surpasses the $500 billion investment referenced by CEO Masayoshi Son in January. This updated plan includes SoftBank’s involvement in the Stargate project, a collaborative venture alongside OpenAI, Oracle, and MGX, which seeks to establish vast AI data centers starting in Texas. Notably, SoftBank’s investments appear to align with consistent policy signals and business opportunities under multiple U.S. presidential administrations.
What role will the new factories play in U.S. manufacturing?
The AI-equipped factories will be designed to assist American manufacturers coping with workforce shortages. With robots capable of performing variable tasks, these facilities aim to reduce dependence on human labor in environments where staffing is difficult or hazardous. This approach could also help businesses maintain operations during labor disruptions or economic uncertainty. According to SoftBank-affiliated startup Skild AI, such robots will be trained for general intelligence to adapt to diverse functions within industrial workflows.
“General purpose robots could support the understaffed labor market and perform hazardous jobs,”
Skild AI said in a press release, emphasizing the practical applications of its ongoing development efforts. The company recently secured $500 million in a funding round led by SoftBank to continue scaling its technology and training data for commercial use.
How is SoftBank funding and managing these infrastructure projects?
SoftBank will act as the primary financial backer for the Stargate initiative, with CEO Masayoshi Son serving as chair of the project. The first phase includes a 500,000-square-foot data center under construction in Abilene, Texas. This project is part of the broader $500 billion plan announced earlier this year. The company’s increased investment level suggests a strategic realignment to position itself as a central player in the AI and robotics sector within the U.S.
SoftBank’s earlier investment pledges echo a long-term pattern of cooperation with U.S. administrations. In 2016, Son promised substantial spending following Donald Trump’s election, citing expectations of deregulation. During a meeting at Trump’s Mar-a-Lago residence, Son remarked,
“My confidence level to the economy of the United States has tremendously increased with his victory. President Trump is a double-down president. I’m going to have to double down.”
This shows a consistent strategic alignment between SoftBank’s investment trajectory and favorable political signals in the U.S. economic environment.
The broader context of SoftBank’s investment activity reveals a progressive increase in both commitment size and technological ambition. The company has continuously elevated its financial and technical involvement in AI-related ventures, from early-stage startups like Skild AI to infrastructural megaprojects like Stargate. While earlier reports mentioned $100 billion and $500 billion investment targets, the current $1 trillion figure marks a significant escalation in expected capital deployment. This shift underscores an intensification of focus on automation as a structural solution to labor and productivity issues in the U.S. economy.
SoftBank’s venture into AI-powered factories introduces a new phase of industrial automation where robotics technology is expected to handle production roles traditionally performed by human workers. Businesses seeking to address chronic labor shortages or hazardous task management may benefit from this integration. However, such efforts also raise questions around industrial employment dynamics and workforce reskilling. For manufacturers, adapting to this automation trend may become essential to maintaining competitiveness. Investors and policymakers will likely monitor how effectively these technologies scale and integrate across sectors. The initiative also reflects how global tech conglomerates like SoftBank are using capital and partnerships to influence domestic economic landscapes beyond their national boundaries.
