In a significant strategic move to cement its position in the artificial intelligence revolution, Japan's SoftBank Group has announced a deal to acquire the digital infrastructure investor DigitalBridge Group. The transaction is valued at $4 billion.
A Strategic Pivot Towards AI Infrastructure
The acquisition, confirmed by both companies on Monday, marks a deliberate expansion of SoftBank's exposure to the physical digital infrastructure that underpins advanced AI applications. Under the vision of its billionaire founder Masayoshi Son, SoftBank is aggressively repositioning its vast portfolio to capitalise on what Son describes as a once-in-a-generation technological shift.
DigitalBridge is a powerhouse in digital infrastructure investment, managing a colossal $108 billion in assets as of 30 September. Its portfolio spans critical sectors including data centres, cell towers, fibre-optic networks, and edge computing infrastructure. Notable companies under its wing include Vantage Data Centers, Zayo, Switch, and AtlasEdge.
DigitalBridge's Evolution and Future
Originally founded in 1991 as Colony Capital, a firm focused on real estate, the company underwent a major transformation. Under the leadership of CEO Marc Ganzi, it pivoted decisively towards digital infrastructure, shedding most of its legacy property assets. This strategic shift culminated in a rebrand to DigitalBridge in 2021.
Following the acquisition, Ganzi will continue to lead DigitalBridge, which will operate as a separately managed platform within the SoftBank ecosystem. This structure suggests SoftBank aims to leverage DigitalBridge's specialised expertise and established portfolio rather than absorb it entirely.
SoftBank's Broader AI Ambitions
This deal is not an isolated bet but part of a concerted, multi-billion dollar push by SoftBank into the AI arena. The company is a key partner in the ambitious Stargate project, a large-scale computing initiative it is developing alongside OpenAI, Oracle, and Abu Dhabi's MGX.
In a related infrastructure expansion, OpenAI, Oracle, and SoftBank revealed plans in September to construct five new computing sites across the US states of Texas, New Mexico, and Ohio. These facilities are projected to have a combined power capacity of approximately 7 gigawatts once operational, highlighting the immense energy and computing demands of next-generation AI.
The acquisition of DigitalBridge provides SoftBank with a direct and substantial pipeline into the essential hardware of the digital age—data centres, networks, and connectivity solutions. As the global race for AI supremacy accelerates, controlling the underlying infrastructure becomes as crucial as developing the software itself. This $4bn deal firmly places SoftBank at the heart of that infrastructure battle.
