SoftBank eyes Switch acquisition to boost AI infrastructure
SoftBank Group Corp. is exploring potential acquisitions, including data center operator Switch Inc., highlighting founder Masayoshi Son’s ambitions to capitalize on the AI-driven boom in digital infrastructure.
According to sources, SoftBank has held talks with Switch’s leadership regarding a possible deal. The company’s owners are seeking a valuation of roughly $50 billion, including debt, News.Az reports, citing Bloomberg.
At the same time, Switch is preparing for an initial public offering as early as next year, with its backers considering a valuation of about $60 billion, including debt, through a stock-market listing.
Acquiring Switch, which designs and operates energy-efficient data centers, would give Son control over a critical component of AI development. He has been seeking ways to expand his influence in the AI sector, which has produced some of the world’s largest companies, from Nvidia Corp. to OpenAI.
SoftBank has been conducting due diligence on the closely held Switch, the people said, asking not to be identified because the information is private. It’s also been in advanced talks on a potential purchase of one of Switch’s main private equity backers, New York-listed investment firm DigitalBridge Group Inc., Bloomberg reported last week.
The Japanese firm’s shares gained 3.9% on Friday in Tokyo.
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