TITLE: SoftBank to Acquire DigitalBridge for $4 Billion in AI Push

SoftBank Announces $4 Billion Acquisition of DigitalBridge

Tokyo-based SoftBank Group Corp. has agreed to acquire DigitalBridge Group Inc. in a deal valued at $4 billion, the companies announced on Monday. The transaction aims to strengthen SoftBank's position in artificial intelligence by expanding its holdings in digital infrastructure critical to AI applications.

Under the terms, SoftBank will purchase all outstanding shares of DigitalBridge, a U.S.-based investor focused on data centers, cell towers and fiber networks. The acquisition reflects SoftBank's broader strategy to capitalize on the explosive growth in AI computing demands, led by founder and CEO Masayoshi Son.

Son has positioned SoftBank at the forefront of the AI revolution, which he describes as a transformative technological shift comparable to the advent of the internet. The deal with DigitalBridge will provide SoftBank with direct access to assets that support the high-capacity computing needs of AI systems.

Details of the Acquisition

DigitalBridge, headquartered in Boca Raton, Florida, specializes in digital infrastructure investments. Its portfolio includes major operators such as Vantage Data Centers, Zayo Group Holdings, Switch and AtlasEdge. These assets are essential for the backbone of AI, including cloud computing, edge processing and telecommunications networks.

The company was originally founded in 1991 as Colony Capital, a real estate investment firm. Under current CEO Marc Ganzi, who joined in 2017, it underwent a significant pivot toward digital assets. In 2021, it rebranded as DigitalBridge after divesting most of its traditional property holdings. As of September 30, DigitalBridge managed approximately $108 billion in assets, establishing it as one of the largest players in the digital infrastructure sector.

Post-acquisition, DigitalBridge will operate as a separately managed platform within SoftBank's ecosystem. Ganzi will retain leadership of the firm, ensuring continuity in its investment strategy. The deal is expected to close in the coming months, subject to regulatory approvals and customary closing conditions.

Financial terms include a cash payment of $4 billion, representing a premium over DigitalBridge's recent market valuation. SoftBank, with its vast resources from investments in companies like Arm Holdings and Alibaba, views this as a strategic fit to diversify beyond traditional venture capital into infrastructure that underpins emerging technologies.

SoftBank's AI Ambitions

SoftBank has aggressively pursued AI opportunities in recent years. The company is a key investor in the Stargate project, a massive initiative alongside OpenAI, Oracle Corp. and Abu Dhabi-based MGX. This partnership involves billions of dollars in funding to develop advanced AI infrastructure.

In September, the consortium announced plans to construct five new computing sites in Texas, New Mexico and Ohio. These facilities are projected to deliver a combined power capacity of about 7 gigawatts once operational, rivaling the output of several nuclear power plants and tailored specifically for AI workloads.

The Stargate project exemplifies the scale of investment required for AI. Data centers equipped with specialized chips, such as those from Nvidia, consume enormous energy and require robust networking. DigitalBridge's expertise in these areas will complement SoftBank's software and chip investments, creating synergies for faster AI deployment.

Son's vision extends beyond hardware. SoftBank has backed AI startups and research initiatives globally, aiming to foster an ecosystem where Japan plays a leading role in the field. The acquisition of DigitalBridge aligns with this by securing supply chain elements vital for AI scalability.

Broader Implications for Digital Infrastructure

The deal occurs amid a global surge in demand for digital infrastructure. AI models, from chatbots to autonomous systems, require vast amounts of data processing power, driving investments in hyperscale data centers and 5G networks. Analysts estimate the digital infrastructure market could exceed $500 billion by 2030, fueled by AI and cloud computing.

For DigitalBridge, the acquisition provides access to SoftBank's international network and capital, potentially accelerating expansion into Asia-Pacific markets. SoftBank's presence in Japan and beyond could open new opportunities for DigitalBridge's portfolio companies.

Regulators will scrutinize the transaction for antitrust concerns, given the concentration of digital assets. However, the focus on infrastructure rather than consumer-facing services may ease approval processes.

This move underscores a trend among tech investors: shifting from pure software bets to the physical enablers of digital transformation. As AI adoption accelerates across industries, control over infrastructure becomes a competitive edge.

Market Reaction and Context

Shares of DigitalBridge rose sharply on the announcement, reflecting investor approval of the premium offer. SoftBank's stock showed modest gains, buoyed by its AI pivot.

The acquisition is SoftBank's latest in a series of strategic moves. Earlier this year, it increased stakes in AI chipmakers and formed alliances with U.S. tech giants. Son, known for bold visions like the $100 billion SoftBank Vision Fund, has rebounded from past losses in WeWork and other ventures by doubling down on AI.

In the wider economy, AI infrastructure investments are drawing scrutiny over energy consumption and environmental impact. The Stargate sites, for instance, will require sustainable power sources to mitigate carbon footprints.

Overall, the SoftBank-DigitalBridge deal signals confidence in AI's long-term trajectory, positioning the Japanese firm as a pivotal player in the infrastructure layer of the AI economy.