Japanese investment giant SoftBank Group has announced a major strategic move to deepen its involvement in artificial intelligence. The company will acquire digital infrastructure investor DigitalBridge Group in a deal valued at US$4-billion.
A Strategic Pivot Towards AI
The acquisition, confirmed by both companies on Monday, is a clear signal of SoftBank's intent to expand its exposure to the digital infrastructure that powers advanced technologies. Under the leadership of billionaire founder Masayoshi Son, the conglomerate is aggressively positioning its portfolio to focus on artificial intelligence, which Son has described as a once-in-a-generation technological shift.
The offer of $16 per share represents a 15-per-cent premium over DigitalBridge's closing price last Friday. This values DigitalBridge at approximately US$2.92-billion. The transaction is expected to be finalized in the second half of next year.
DigitalBridge's Role in the Digital Ecosystem
DigitalBridge is a key player in the digital infrastructure space. The firm, which managed around US$108-billion in assets as of September 30, invests in critical sectors including:
- Data centres
- Cell towers and small-cell systems
- Fibre networks
- Edge infrastructure
Its portfolio includes notable companies such as Vantage Data Centers, Zayo, Switch, and AtlasEdge. Originally founded in 1991 as real estate-focused Colony Capital, the firm underwent a significant transformation. Under CEO Marc Ganzi, it pivoted to digital infrastructure and rebranded as DigitalBridge in 2021 after shedding most of its legacy property assets. Following the acquisition, Ganzi will continue to lead DigitalBridge as a separately managed platform.
SoftBank's Broader AI Ambitions
This deal is part of a larger pattern of investment by SoftBank into the foundational elements of AI. The company is seeking to capitalize on the exploding demand for the computing capacity required to train and run sophisticated AI models.
In a related major initiative, SoftBank is partnering with OpenAI, Oracle, and Abu Dhabi-based tech investor MGX on the "Stargate" project. This is a large-scale computing and infrastructure effort aimed at supporting advanced AI development. In September, OpenAI, Oracle, and SoftBank revealed plans to build five new computing sites across Texas, New Mexico, and Ohio. These sites are projected to have a combined power capacity of about seven gigawatts when operational.
The market reacted positively to the acquisition news. DigitalBridge shares rose roughly 10 per cent to $15.27 in premarket trading on Monday. This follows a 45 per cent surge earlier in the month after Bloomberg News first reported the talks between the two companies.
