Catenaa, Saturday, January 31, 2026-SoftBank Group has halted talks to acquire US data center operator Switch, dealing a setback to founder Masayoshi Son’s plans to expand artificial intelligence infrastructure through the Stargate project, according to people familiar with the matter.
Son had pursued a deal valued at about $50 billion, seeking direct control of Switch’s network of energy efficient data centers to support large scale computing capacity for partners including OpenAI.
Earlier this month, SoftBank scrapped plans for a January announcement and concluded that a full acquisition would not proceed, the people said.
Discussions between the two sides continue around a possible partial investment or partnership. SoftBank recently agreed to buy DigitalBridge Group for about $3 billion, a firm that is a major backer of Switch.
Representatives for SoftBank, Switch and DigitalBridge declined to comment.
The proposed transaction would have ranked among SoftBank’s largest and was viewed internally as a way to accelerate Stargate, an initiative aimed at building data centers across the US.
Son has pledged to deploy up to $100 billion alongside partners including OpenAI, Oracle and Abu Dhabi backed MGX to expand AI computing capacity.
Some within SoftBank raised concerns over the size of the deal and the complexity of operating data center campuses across multiple US regions.
Switch is also preparing for an initial public offering that could value the company at roughly $60 billion including debt.
Any transaction involving Switch would likely face review by US foreign investment authorities. SoftBank shares fell sharply in Tokyo trading following reports that the talks had stalled.
