• Deal Finalized: SoftBank Takes Over Foxconn’s Ohio Electric Vehicle Factory for $375 Million

According to media reports on August 11, SoftBank has been confirmed as the final buyer of Foxconn’s electric vehicle factory in Ohio, U.S., with the transaction price set at $375 million.

Earlier this week, Hon Hai Precision, a subsidiary of Foxconn, announced the sale of the factory to an entity named “Crescent Dune”. Insiders revealed that SoftBank is behind Crescent Dune. After the transaction is completed, Foxconn will continue to operate the factory, using it for AI server manufacturing and potentially converting it into a data center.

• Strategic Synergy: Assisting the “Stargate” Project, SoftBank Brings Foxconn Onboard

This move is part of SoftBank’s efforts to advance its ambitious “Stargate” AI project. It is reported that SoftBank has encountered difficulties in the financial planning for “Stargate” and is therefore seeking Foxconn’s participation in its plan to build data centers and related infrastructure in the U.S. The acquisition of the factory is part of their cooperation.

• Cooperation Origin: A Decade of Partnership, Writing a New Chapter

Foxconn and SoftBank have a long history of strategic cooperation, including the joint development of SoftBank’s humanoid robot Pepper a decade ago. Earlier this year, the two parties announced the establishment of a joint venture, with each committing $735 million to focus on developing data center and manufacturing businesses in the U.S. It remains unclear how the $375 million factory acquisition is specifically related to the aforementioned joint venture.

• Project Difficulties: Policy and Market Obstacles Hinder “Stargate” Progress

To advance the “Stargate” project, SoftBank has been searching for suitable locations, evaluating local water, electricity, and network resources. However, U.S. tariff policies and the growing popularity of low-cost open-source AI models have made it difficult for SoftBank to establish a pricing model to support project financing.

• Different Paths for Peers: OpenAI Independently Advances Its “Stargate” Data Center Plan

Notably, OpenAI, a partner of SoftBank, is also independently advancing its own “Stargate” data center plan. OpenAI has promoted its data center in Abilene, Texas, as the first “Stargate” project and is seeking partnerships to build large-scale data centers in the United Arab Emirates and Norway (projects not involving SoftBank).

• Future Outlook: SoftBank Pushes Forward Actively, Site Selection Decision Imminent

SoftBank’s Chief Financial Officer Yoshimitsu Goto acknowledged during a earnings call on Thursday that the company has faced difficulties in reaching consensus with partners, leading to slower-than-expected project progress. However, he also stated that SoftBank will soon make a specific decision on the location of the first “Stargate” project.

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