SoftBank CEO and Macron plan to launch billion-dollar AI project in France

(Bloomberg) — SoftBank Group founder Masayoshi Son has held talks with President Emmanuel Macron about launching an ambitious AI data center project in France in the coming weeks, according to sources familiar with the matter.

The Japanese businessman is considering a billion-dollar investment in the country as part of the broader expansion of SoftBank’s artificial intelligence infrastructure, according to the sources, who requested anonymity because the discussions were private.

Son raised the idea of ​​injecting up to US$100 billion into the country, according to two of the sources, although he may not come close to that amount if he decides to prioritize other projects.

SoftBank CEO and Macron plan to launch billion-dollar AI project in France

Macron proposed the idea of ​​AI during a recent meeting with Son in Tokyo, and the announcement could come as soon as this month. The Japanese investor, accustomed to receiving similar queries from various company heads, was intrigued by an approach made directly by a head of state and began to look into the matter seriously, according to one of the sources.

Macron and Son may announce the plans during the Choose France Summit — an annual gathering of industry leaders that Macron started in 2018 to attract foreign investment and promote France’s business appeal.

The sources also stated that the details of the project remain undefined and the scope of the potential investment could change. Son is known for having a long list of investment ideas that he reviews regularly, and has announced hundreds of billions of dollars in AI infrastructure around the world that have yet to come to fruition.

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A SoftBank representative declined to comment. The French president’s office did not respond to a request for comment.

There are doubts about whether Son will be able to secure enough funding to realize all of his AI ambitions.

The French plans follow SoftBank’s March announcement about the launch of a large-scale data center project in Ohio that could funnel $500 billion to install 10 gigawatts of capacity. It would be an AI computing complex powered by about $33 billion in natural gas-generated electricity.

These ventures are in addition to the US$500 billion Stargate initiative, in which SoftBank works in partnership with OpenAI, Oracle and Abu Dhabi’s MGX to deploy data centers in the US.

In addition to data center projects, SoftBank has committed to investing more than $60 billion in OpenAI for a stake of around 13%.

SoftBank scaled back plans for a $10 billion margin loan secured by its stake in OpenAI after facing hesitation from some lenders, Bloomberg reported. The Japanese conglomerate and the bankers helping it with the loan have mentioned a target amount as low as $6 billion.

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Still, the efforts highlight Son’s growing ambitions to secure data center bases in strategic locations around the world, as AI companies race to acquire enough computing capacity to meet growing demand for their services.

Tech giants are dramatically increasing their capital spending on AI infrastructure this year. Just four companies — Amazon, Alphabet, Microsoft and Meta Platforms — plan to spend up to $725 billion this year, which would be nearly double last year’s level.

Macron has been a staunch advocate for countries beyond the US and China to build their own AI infrastructure. He advocates the idea of ​​sovereign AI and investing in local players, like Mistral AI, so that nations have control over their data and technology.

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Macron also promotes France as an attractive destination due to its power grid and nuclear energy supplies. At last year’s Choose France Summit, Nvidia and MGX announced plans with French AI company Mistral to build a 1.4 gigawatt website. The UAE said at the time it would spend between €30 billion ($35.3 billion) and €50 billion on a new campus in the country, according to French officials.

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