SoftBank buys Foxconn's Ohio plant to jumpstart Stargate AI push, Bloomberg News reports

SoftBank has acquired Foxconn's 1.2 million-square-foot Ohio plant to advance its Stargate AI hardware project. The facility will be converted from EV manufacturing to produce custom AI chips and data center hardware in the United States. This strategic move helps SoftBank reduce geopolitical risks, leverage CHIPS Act incentives, and respond to growing AI hardware demand. The acquisition represents a reboot of SoftBank's ambitious $500 billion AI vision, allowing for vertical integration similar to major tech players—enabling faster prototyping, lower production costs, and real-time optimization. The Ohio plant will serve as the cornerstone of Vision Fund 2's efforts to build a comprehensive AI ecosystem, potentially setting new industry standards while reshaping global AI hardware development.

SoftBank has acquired Foxconn's Ohio electric vehicle plant to advance its $500 billion Stargate data center project. The initiative involves partnerships with OpenAI and Oracle to build massive AI computing infrastructure. Foxconn sold the Lordstown facility as part of its strategic shift, while maintaining commitments to EV and AI server development in North America. The Stargate project aims to supply computing power for cutting-edge AI applications, positioning Ohio as a major U.S. hub for artificial intelligence and creating new technology opportunities and jobs in the region.

SoftBank Group shares reached a record high, jumping over 13% following strong Q1 results with a net profit of 421.8 billion yen ($2.87 billion). Investor confidence surged due to the company's significant AI investments, including $30 billion in OpenAI and backing for Stargate's $500 billion data center project. The company's improved financial position, with its loan to value ratio decreasing to 17%, helped boost Japan's Topix index above 3,000 points for the first time. This rally provides relief for long-term investors after SoftBank shares had previously traded at a significant discount to asset value.

India's largest IT firm TCS is laying off 12,200 employees (2% of its workforce), marking the biggest layoffs in India's IT sector. The $283 billion industry faces disruption from AI automation and economic pressures, with TCS citing these as key reasons for cuts. The company is investing heavily in AI while revising employee policies, including a new requirement for 225 billable days annually. Some staff reportedly faced pressure to resign with three months' severance or risk termination without compensation. The layoffs reflect a broader industry trend, with major Indian IT firms experiencing a 72% drop in hiring as the sector undergoes AI-driven transformation.