SoftBank Eyes Data Center Group Switch As Son Hunts For AI Plays

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Economic

Summary:

SoftBank Group Corp. is studying potential acquisitions including data center operator Switch Inc., as billionaire founder Masayoshi Son ramps up the search for deals that can help it ride the AI-fueled boom in digital infrastructure, people with knowledge of the matter said.

The Japanese company has held discussions with Switch leadership and has been conducting due diligence on the closely held company, the people said, asking not to be identified because the information is private. SoftBank also has 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 News reported last week.

Son has been looking for ways to play a bigger role in an artificial intelligence race that has elevated SoftBank's longtime business partner Nvidia Corp. to the status of the world's most valuable company. An acquisition of Switch, which specializes in designing and operating energy-efficient data centers, would help the Japanese billionaire control a key bottleneck to AI development.

The owners of Switch have been seeking a valuation of around $50 billion including debt for the data center operator in any deal, some of the people said. They have also simultaneously preparing for a potential initial public offering of Switch as soon as early next year, according to the people. Switch's backers have been considering seeking a valuation of about $60 billion including debt in a stock-market listing of the company, they said.

The SoftBank team often analyzes numerous potential deals in a particular space before deciding which transaction to pursue, and it sometimes decides to do multiple deals in a particular area it wants to rapidly expand in. Acquiring Switch would allow SoftBank to own a large portfolio of data centers outright at a time when demand for their computing power is growing rapidly.

A consortium including DigitalBridge and Australian infrastructure manager IFM Investors Pty bought Switch in a 2022 deal valued at $11 billion including debt.

Shares of DigitalBridge have gained about 35% this year, giving it a market value of $2.8 billion. With about $108 billion of assets under management, it's one of the biggest investment firms focused on digital infrastructure. A deal for DigitalBrige would bring SoftBank expertise in raising large amounts of capital, as well as deep relationships with investors keen to deploy their money in the data center industry.

SoftBank hasn't reached an agreement on terms of a deal, and there's no certainty the discussions will lead to a transaction, the people said. It would likely need to line up significant financing for any acquisition of Switch, which would rank as one of SoftBank's largest deals if it goes ahead.

Representatives for SoftBank, Switch and DigitalBridge declined to comment.

Despite being early to invest in AI technologies, Son has missed much of a global rally that's positioned Nvidia, Taiwan Semiconductor Manufacturing Co. and OpenAI at the forefront of a global boom in machine learning.

This year, however, SoftBank has announced a plethora of moves in the AI arena, including the $500 billion Stargate project alongside OpenAI, Oracle Corp. and Abu Dhabi's MGX to build data centers in the US. But while Son pledged to deploy $100 billion "immediately," the Stargate rollout has been slower than planned.

In recent months, SoftBank bought US chip designer Ampere Computing LLC for $6.5 billion and has committed roughly $30 billion to ChatGPT developer OpenAI. The Tokyo-based company has also proposed a $5.4 billion acquisition of ABB Ltd.'s robotics unit and bought a stake in chipmaker Intel Corp. To finance some of that cost, SoftBank has unloaded its entire Nvidia stake and expanded a margin loan using its Arm Holdings Plc shares. The company's SoftBank Corp. telecom unit is also ramping up spending on its data centers in Japan.

Source: Bloomberg Europe

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Nathaniel Wright

Prime Minister Mark Carney is a step closer to securing a majority in Canada's Parliament after his Liberal Party gained a defector from the opposition Conservatives for the second time in two months.

Carney's Liberal caucus now has 171 seats of the 343 seats in the House of Commons with lawmaker Michael Ma's move to join his party.

Ma, who represents Markham in the greater Toronto region, said he came to the decision after listening carefully to constituents, and that he entered public service "to help people — to focus on solutions, not division."

The move will escalate questions about the leadership of the rival Conservatives under Pierre Poilievre, who finished second to the Liberals in an election in April.

The Carney government's minority status means it has to fish for opposition votes to pass any piece of legislation, including the government budget. Canada hasn't been ruled by a majority government since 2019.

The Conservatives did not immediately respond to a request for comment. The party lost a Nova Scotia lawmaker to the Liberals in November. Another stepped down without switching sides during the same week.

Source: Bloomberg Europe

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Justin

Stocks

Political

U.S. President Donald Trump on Thursday signed an executive order on artificial intelligence that will attempt to preempt a growing number of state laws governing the technology with a national standard.

"We want to have one central source of approval," Trump told reporters, flanked by top advisers, including Treasury Secretary Scott Bessent.

Trump said companies should not have to abide by laws that differ by state.

"You still won't get it approved, if you have to go to 50 states," he said.

The order will give the Trump administration tools to push back on the most "onerous" state regulations, said White House AI adviser David Sacks. The administration will not oppose rules governing AI that relate to child safety, he added.

Major AI players including ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms and venture capital firm Andreessen Horowitz have said the federal government, not states, should regulate the industry.

Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry.

Florida Gov. Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections.

California Gov. Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major AI developers to explain plans to mitigate potential catastrophic risks.

Other states have passed laws banning AI-generated non-consensual sexual imagery and unauthorized political deepfakes.

Source: Asia_Nikkei

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Winkelmann

Political

Economic

Abrego's lawyer said decision was a "victory not just for one Maryland man but for everyone"

A Salvadoran man at the center of a row over President Donald Trump's hardline immigration policies was released from custody on Thursday after a lengthy legal battle.

Kilmar Abrego Garcia, who was wrongfully deported to his native El Salvador in March before being brought back to the US in June to face human smuggling charges, will now be permitted at least temporarily to return to his Maryland home.

US District Judge Paula Xinis, who was nominated by former President Barack Obama, said the Trump administration has "no lawful basis to detain and remove" Abrego and that "his continued detention must end."

Andrew Rossman, a lawyer for Abrego, said the decision was a "victory not just for one Maryland man but for everyone" and thanked the court for "upholding due process and the rule of law."

Abrego's case has become a symbol of the Trump administration's aggressive immigration crackdown, as his legal battles highlight the new deportation policies the administration has sought to use.

The Trump administration has repeatedly claimed that Abrego is a member of the Salvadoran gang known as MS-13 and should not be allowed to stay in the US. His family and attorneys deny that he has any gang connection.

A White House spokeswoman told reporters the Trump administration would appeal the decision, accusing Judge Xinis of "activism."

Source: DW

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Samantha Luan

Political

Economic

President Donald Trump issued an executive order seeking to limit the influence of proxy advisory firms, part of a push to curtail how third-party firms attempt to sway the direction of public companies.

The executive order issued on Thursday directs the chairman of the Securities and Exchange Commission to conduct a review on rules and regulations relating to proxy advisors and to consider "revising or rescinding those rules, regulations, guidance, bulletins, and memoranda that are inconsistent with the purpose of this order, especially to the extent that they implicate 'diversity, equity, and inclusion' and 'environmental, social, and governance' policies."

The order mentions two such advisors, Institutional Shareholder Services Inc. and Glass Lewis & Co LLC, that provide guidance to institutional investors on how to vote at shareholder meetings, claiming that they have "supported shareholder proposals requiring American companies to conduct racial equity audits and significantly reduce greenhouse gas emissions, and one continues to provide guidance based on the racial or ethnic diversity of corporate boards."

"Their practices also raise significant concerns about conflicts of interest and the quality of their recommendations, among other concerns," it adds. "The United States must therefore increase oversight of and take action to restore public confidence in the proxy advisor industry, including by promoting accountability, transparency, and competition."

Thursday's move is the latest example of how Trump and his allies in office have acted to target diversity and equity initiatives, efforts to address climate change and other practices in corporate America that conservatives have long bemoaned, and intensifies the administration's scrutiny on proxy advisors.

ISS and Glass Lewis are already being investigated by the Federal Trade Commission over whether they may have breached US antitrust laws by offering shareholder advice on politically charged topics, according to people familiar with the matter.

The order issued by the White House also directs the FTC chair to consult with the US attorney general and "review ongoing State antitrust investigations into proxy advisors" to determine if there are any links to "violations of federal antitrust law."

US Securities and Exchange Commission Chair Paul Atkins also said last month that the regulator will consider reforms for proxy advisors.

The House Judiciary Committee earlier this year demanded the firms hand over records to help it "evaluate the sufficiency of US antitrust laws to address competition concerns in the proxy advisory market."

Senate Banking Committee Republicans have also probed ISS and Glass Lewis — the two major proxy advisory firms in the US — over potential conflicts of interest and political bias.

Earlier this year, Glass Lewis said that starting in the 2027 annual shareholder season, it would no longer give a "house view" on how investors should cast their ballots — ending a decades-long practice of providing benchmark recommendations.

Source: Bloomberg Europe

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Daniel Carter

Political

U.S. President Donald Trump looks on, as he signs an executive order on AI in the Oval Office at the White House in Washington, D.C., U.S. Dec. 11, 2025.

President Donald Trump signed an executive order Thursday issuing a single regulation framework for artificial intelligence, undermining the power of individual states.

The Trump administration, with the aid of AI and crypto czar David Sacks, has been pursuing a path that would allow federal rules to preempt state regulations on AI, a move meant to keep big Democratic-led states like California and New York from exerting their control over the growing industry.

There has been a growing debate over AI, specifically related to an increasing number of individual state laws that could conflict with a federal standard.

The move marks a win for tech companies, who've argued against states rights when it comes to regulation on artificial intelligence.

AI companies have been ramping up lobbying, opening offices close to the Capitol and launching campaigns through a super PAC with at least $100 million to spend on the midterm elections in 2026.

States across the country are legislating on AI. States like Colorado and California have proposed bills requiring risk assessments and disclosure related to AI. OpenAI, Andreessen Horowitz and Google are among the company lobbying to block state laws that regulate AI, arguing a patchwork of regulation across the country would prevent the U.S. ability to compete in the global AI race.

A draft version of a proposed executive order surfaced last month, proposing a single federal standard on AI "instead of a patchwork of 50 State Regulatory Regimes."

Sacks and fellow tech investor and podcaster Chamath Palihapitiya stood beside Trump during the signing. Following Trump's election, Sacks was appointed as the White House AI and "Crypto Czar" to guide administration policy, while Palihapitiya maintains high-level access to White House leadership as a vocal supporter.

Source: CNBC

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Daniel Carter

Economic

Treasury Secretary Scott Bessent said he would continue his campaign to reduce financial regulations, highlighting the administration's effort to bolster economic security amid concerns over persistent inflation and affordability.

"Economic growth is critical to financial stability," Bessent said in a letter accompanying the 2025 annual report for the Financial Stability Oversight Council, a regulatory body created in response to the 2008 financial crisis.

Trump administration officials have already moved to overhaul a range of financial regulations this year, including relaxing capital requirements that lenders have said limit their ability to act as intermediaries in the Treasuries market and eliminating post-crisis curbs on leveraged lending.

While top regulators have championed these steps as necessary, critics have warned that weakening oversight and easing the rules could heighten risks.

"Any cost-benefit analysis of a new regulation assesses the rule's costs in isolation," Bessent added. "The cumulative burdens of regulatory and supervisory regimes, and the interactions among individual rules, are rarely considered."

Bessent said Thursday that officials would look at whether regulations "impose undue burdens and negatively impact economic growth, thereby undermining financial stability."

He serves as the chair of the council in his capacity as secretary of the Treasury. He has previously announced that his department would play a greater role on the regulatory front in the name of boosting economic growth.

Bessent said FSOC's priorities in 2026 would focus on the four major areas of market resilience, household resilience, artificial intelligence and crisis preparedness.

He pointed out that the "household resilience working group" would "consider early-warning indicators of potential stress in household balances sheets" while examining trends related to household credit access and developments in the housing and mortgage markets.

President Donald Trump traveled to Pennsylvania earlier this week as part of an attempt to reset his administration's messaging around voter's concerns about inflation and costs, including food and housing.

Republicans have recently lost several key elections amid frustrations that persistent high costs and a slowing job market have imperiled household finances.