Trump’s entourage of allies continues to be established for his new mandate. The president-elect of the United States appeared alongside Masayoshi SonCEO of SoftBankone of the largest investment conglomerates in the world, to announce the investment of one hundred billion of dollars throughout the mandate of trumpin order to boost the American economy.
trump announced that the Japanese company’s investment would create one hundred thousand jobs, focused mainly on artificial intelligence and the creation of an infrastructure that supports it. Both protagonists know each other, since the Japanese businessman already invested 50 billion dollars in 2016, coinciding with the magnate’s first term, promising the creation of 50 thousand jobs. After the past investment, Are is once again betting on the United States, doubling the amount, as well as the jobs it intends to create.
Harmony between both
Although the US government reported that it had distributed the 50 billion that Son invested, it is not so clear that the promised jobs were created, according to ‘Reuters’. During the appearance, trump He stated that the investment corresponded to “the monumental confidence in the future of the United States.” He even joked with Areinviting him to increase the investment to 200,000 million, to which the Japanese businessman laughingly promised to try.
For his part, the controversial CEO of SoftBankinvolved in the Panama Papers case, was full of praise for the president-elect of the United States, celebrating “President Trump’s great victory” and being “enthusiastic” about the new agreed investment plan. “I trust that the president will bring peace to the world again,” he added. Arepresent alongside Trump at the announcement of the collaboration.
The operation was announced by both protagonists in a room decorated with flags in Mar-a-Lago, Florida, the habitual place of residence of trump. This aligns with the new president’s objectives, which include boosting the American economy and reducing the inflation that grips citizens.
It is not yet clear how SoftBank plans to finance the investment. According to current data, the conglomerate has $27 billion in cash in its accounts. On the other hand, the “Vision 2” fund, owned by the company, could contribute another three billion. Another source of financing could be the chip manufacturer Arm Holdings, of which the Japanese firm is a majority shareholder.
Either way, trump He is full of praise for his ally, whom he has not hesitated to describe as “one of the most successful businessmen of our times.” “This investment will ensure that artificial intelligence, emerging technologies and other industries of tomorrow are built, created and developed here in the United States,” said the president.
Besides, SoftBank has needed to carry out a reconstruction of its finances, as a result of the failure of its “WeWork” project. This consisted of a startup focused on sharing office spaces. The fall of this initiative has been a serious blow to Arewhich identified the need to relaunch the company’s reputation. After the announcement with trumpSoftBank shares rose more than 4% on the Tokyo Stock Exchange, confirming the positive effect of the collaboration agreement.
Promises without plans
As to trumpthe president-elect has a long history of broken promises, especially about the jobs he will create. In his first term, he announced an investment of ten billion in the country by Foxconnthe Taiwanese electronic products company. This operation, according to the magnate, would create millions in taxes, but it was abandoned over time and these promises never materialized.
Amir Anvarzadehsecretary of Assymmetric Advisors in terms of strategy and equity, spoke with ‘Reuters’ about Trump and Son’s announcement. «I don’t think there is a tangible plan in time. Questions about what exactly are you going to buy? SoftBank They are worrying. The opportunity to invest in AI is passing, and it doesn’t seem like SoftBank has a strategy,” Anvarzadeh said.
Masayoshi Son He has promoted the potential of artificial intelligence numerous times during his career, and considers it important to expand SoftBank’s presence in the sector. By increasing its stake in OpenAI by $1.5 billion, the investment giant continues to strengthen its technological profile. In fact, Son predicted in October the future arrival of the “super artificial intelligence” and declared that its establishment would require hundreds of millions of investment.
SoftBank’s investment joins the numerous efforts being carried out by large companies, especially technology companies, to ingratiate themselves with trump facing his second term. For its part, Goal already announced the donation of a million dollars to Trump’s inauguration fund, as they plan to do amazon and OpenAI.
The agreement between the controversial CEO of SoftBank and the president-elect of the United States, already announced by both parties, continues a long history of alliance. Trump has already warned the world that he would facilitate investment for those who inject at least a billion dollars into the United States. Are He has jumped on board, even before the beginning of Trump’s term, but everything seems to indicate that he will not be the only one to ally himself with the new tenant of the White House.
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