SoftBank Shifts AI Infrastructure Focus as Major Acquisition Stalls

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SoftBank Group has suspended its pursuit of a major acquisition in the US data center market, signaling a strategic recalibration of its artificial intelligence expansion plans. The Japanese conglomerate has halted talks to acquire data center operator Switch Inc. in a deal that was reportedly valued at approximately $50 billion. This pause redirects immediate attention to the company's alternative methods for securing the computational power required for advanced AI.

The decision to suspend negotiations for a full takeover of Switch follows extended discussions between the parties. The targeted company operates a network of energy-efficient data centers across several major US cities. For months, this potential acquisition was viewed as a cornerstone of SoftBank's long-term strategy to control the substantial computing infrastructure necessary for demanding AI applications.

Internal concerns regarding the transaction's sheer scale and the operational complexity of managing widespread data center campuses are understood to be key factors behind the pause. This move represents a notable shift from SoftBank's previously aggressive push into the AI infrastructure sector.

Exploring Alternative Pathways and Partnerships

While the full acquisition is on hold, collaboration with Switch is not entirely off the table. Reports indicate that both sides continue to discuss potential alternative arrangements, including:

• A smaller, partial stake in Switch
• A strategic partnership that stops short of an outright purchase

Concurrently, SoftBank's broader AI strategy is coming into sharper focus. The group is increasingly aligning its investment portfolio with artificial intelligence, a direction underscored by its substantial existing investment in OpenAI.

Another relevant component is SoftBank's pending acquisition of the investment firm DigitalBridge Group, which itself holds a stake in Switch. This transaction has been submitted for review to the US Committee on Foreign Investment (CFIUS). Consequently, regulatory decisions here could also influence SoftBank's indirect access to Switch's assets.

Investor Outlook and Upcoming Catalysts

With the mega-deal paused, the significance of potential smaller-scale collaborations with Switch has increased. A concluded agreement on a partial investment or strategic alliance could provide near-term positive momentum for how the market values SoftBank's AI infrastructure roadmap.

Furthermore, investors are likely to seek clearer guidance from the company's upcoming financial report. SoftBank is scheduled to release its results for the third quarter of fiscal year 2025 on February 12, 2026. The market anticipates more concrete statements regarding the company's strategic direction in AI and the performance of its global technology investments at that time.

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