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International Business Times
International Business Times
Business

SoftBank Eyes Next-Gen AI Data Centers with $4B DigitalBridge Acquisition

This file picture taken on July 28, 2016 shows SoftBank Group Representative Masayoshi Son speaking at a press conference. Arm, a chip designer based in the UK and primarily owned by SoftBank, is set to create a specialized division focused on AI chips. Their goal is to develop a prototype by spring 2025 and then start mass production in the same year's fall.

Japan's SoftBank Group announced on Monday that it will acquire digital infrastructure investment firm DigitalBridge for $4 billion as part of its growing focus on artificial intelligence.

The deal, approved by a special committee of DigitalBridge's board, values the company at $16 per share in cash, representing a 15% premium over DigitalBridge's closing price on Dec. 26.

The acquisition is expected to close in the second half of next year.

According to CNBC, SoftBank CEO and Chairman Masayoshi Son said the move will "strengthen the foundation for next-generation AI data centers" and help advance the company's goal to become a leading "Artificial Super Intelligence" platform provider.

"As AI transforms industries worldwide, we need more compute, connectivity, power, and scalable infrastructure," Son added.

DigitalBridge CEO Marc Ganzi echoed the sentiment, calling the acquisition "one of the most significant investment opportunities of our generation."

He said SoftBank's capital and global network would allow DigitalBridge to accelerate its mission, invest with a longer-term perspective, and support the world's top technology companies in scaling their AI ambitions.

SoftBank Moves Into AI with DigitalBridge

DigitalBridge, previously known as Colony Capital, manages around $108 billion in assets and has built a strong presence in digital infrastructure, including data centers, fiber networks, cell towers, small-cell systems, and edge infrastructure.

Its portfolio includes Vantage Data Centers, Zayo, Switch, and AtlasEdge.

The company pivoted from traditional real estate to digital infrastructure under Ganzi and rebranded as DigitalBridge in 2021, Reuters reported.

The acquisition comes amid a global surge in demand for AI infrastructure. SoftBank recently sold its entire stake in US chipmaker Nvidia for $5.83 billion to make room for further AI investments.

The companies are also collaborating with OpenAI, Oracle, and Abu Dhabi-based tech investor MGX on the Stargate project, a multi-billion-dollar initiative to develop large-scale computing sites in Texas, New Mexico, and Ohio.

These sites are expected to provide about seven gigawatts of combined power capacity.

DigitalBridge's shares jumped roughly 10% following the announcement, reflecting investor confidence in the deal and the growing interest in AI infrastructure worldwide.

Originally published on vcpost.com

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