Founder of SoftBank Group, Masayoshi Son, has proposed plans to set up a massive AI and robotics manufacturing industrial zone in Arizona. The endeavour could likely cost a whopping $1 trillion if it reaches its full scale. Reportedly, the project was earlier known as Project Crystal Land and aims at building infrastructure for AI systems and robotics. According to reports, Son has discussed the project with Samsung, chipmaker TSMC, and the Trump administration.
Dubbed the Arizona AI megaproject, it aims to set up a Shenzhen-like manufacturing hub for robotics and AI. This aligns with US President Donald Trump’s vision of bringing high-tech production back to America.
What is the project?
Project Crystal Land envisions a futuristic industrial park specially designed to build AI-powered industrial robots and accelerate AI technologies. The project aims to rival China’s Shenzhen, which is widely known as a hub for innovation and manufacturing excellence. As of now the AI arms race is intense, with the US and China in the fray, and this project could likely catapult the Grand Canyon State into the global arena as a centre for high-tech production.
The project is in line with the multinational investment holding company’s aggressive strategy for investing in AI. This comes after the company pledged a $19 billion investment to the ambitious $500 billion Stargate AI infrastructure project flagged off by Trump along with Son, OpenAI CEO Sam Altman, and Larry Ellison of Oracle earlier this year. As part of its strategy, SoftBank Group recently pushed $40 billion into OpenAI and acquired Ampere Computing for $6.5 billion.
Project Crystal Land, if materialised, would include research and development labs and production facilities focused on Artificial General Intelligence (AGI), processing of advanced semiconductors, tech workforce housing, and a likely integration with smart grid infrastructure.
Reportedly, SoftBank is eyeing involving TSMC in its grand initiative. TSMC has been instrumental in fabricating processors for NVIDIA. The Taiwanese company currently plans to invest about $165 billion in total in its US projects; however, reports indicate that this is unrelated to SoftBank’s proposed project. Similarly, Samsung Electronics has also been approached for the project.
Government backing
Reportedly, discussions between SoftBank and federal and state government officials are underway to gain support for Project Crystal Land. Son has reportedly met US Secretary of Commerce Howard Lutnick and other officials to mull over likely tax incentives and regulatory nods that may support the development of thesemassive complex. The discussions follow Trump’s vision to revive American manufacturing capabilities and bring jobs back to the US. However, the success of this project would largely depend on a favourable regulatory environment and gaining support from the US government. Following the reports of the proposed collaboration, SoftBank’ shares soared as much as 2 per cent, and TSMC’s stock witnessed a hike of 1.9 per cent.
Story continues below this ad
When it comes to financing this mega trillion-dollar project, SoftBank will likely follow a model that is similar to oil pipeline funding, essentially reducing its upfront capital needs while at the same time using the company’s present $23 billion liquidity and its stake in Arms Holdings as collateral. Reportedly, its project-based approach will enable SoftBank to gain additional funding without stressing its immediate financial resources.
0
0
Average Rating