SoftBank Group founder Masayoshi Son publicly challenged Elon Musk's space data center concept at the company's telecommunications subsidiary annual shareholder meeting held on June 23, stating that the AI race will be determined by computing power on Earth and that space data centers hold minimal value. Son explained that while space-based facilities offer electricity cost advantages, power expenses represent only approximately 7% of total AI data center operational costs, with savings offset by higher space transport fees, maintenance costs, and communication latency. Son characterized Musk as an 'outstanding innovator' but emphasized SoftBank's focus on building 'massive scale' terrestrial data center computing capacity globally, declaring 'first movers win' in the AI competition expected to conclude within the next decade.
Son Cites 7% Electricity Cost Share in Space Data Center Critique
At the June 23 shareholder meeting, Son stated that the primary advantage of building data centers in space lies in significantly reducing electricity costs. However, when compared to hardware costs such as chips, electricity expenses account for only approximately 7% of AI data center operational costs. When asked by shareholders about SpaceX's space data center project, Son stated: 'In the space sector, it will take more than ten years to see results, while competition in the AI field will be decided in about the next decade.'
According to Nikkei News, SoftBank President Miyakawa Junichi stated at the shareholder meeting that space operations still face numerous technical challenges, adding 'we will not participate in such projects in the near term.' He noted that compared to other regions globally, Japan's data center construction momentum is weaker, stating 'we have a responsibility to create a favorable environment for Japan's AI development.' The company is preparing to enter the U.S. neocloud market and data center energy storage battery sectors.
SpaceX described a 'space data center' vision in its prospectus: using Starship to send million-ton-scale computing equipment into orbit, leveraging space's unlimited cooling and solar energy to become the lowest-cost computing power source in the future. SpaceX positions orbital AI computing satellites as its next major growth engine, with plans to begin deployment as early as 2028. Musk has publicly claimed multiple times that if 100 million tons of payload are delivered to orbit annually, calculated at 100 kilowatts per ton, that equals 100GW of solar-powered AI satellites per year. 'And we are entirely capable of reaching an annual target of 1 terawatt,' Musk stated.
SoftBank Announces €75 Billion France Investment and $500 Billion Ohio Plan
On May 31, SoftBank announced an investment of up to €75 billion in France to build a large-scale AI computing cluster network, including Europe's largest data center to date with a total capacity projected at 5 gigawatts. The data center will serve not only the French market but also provide computing power services to customers in neighboring countries. French electrical equipment manufacturer Schneider Electric will participate in the project, collaborating with SoftBank to build an industrial hub integrating AI infrastructure and robotics manufacturing in Dunkirk, France.
Earlier, Son proposed a concept in March to begin construction this year of an AI-focused data center in Ohio in the U.S. Midwest, with a planned investment of approximately $500 billion. He stated this would 'become the largest-scale investment in a single location in history.'
SoftBank Secures 13% OpenAI Stake with $64 Billion Investment
SoftBank has cumulatively invested over $64 billion in OpenAI, securing approximately 13% equity stake, making it the second-largest external investor after Microsoft. This move deeply binds SoftBank's fortunes to the future of the AI company.
As part of its series of AI investment initiatives, SoftBank Group announced in March of last year the acquisition of U.S. chip design startup Ampere Computing for $6.5 billion in cash. Prior to this, SoftBank acquired UK-based AI chip unicorn Graphcore, which was once viewed as a strong challenger to NVIDIA.
Son, who fell from prominence after heavy bets on ventures such as WeWork, is returning to the top by fully betting on artificial intelligence, recently reclaiming the position of Asia's richest person for the first time in over a decade.
FAQ
What did Masayoshi Son say about space data centers on June 23?
At SoftBank's telecommunications subsidiary annual shareholder meeting held on June 23, Masayoshi Son stated that space data centers hold minimal value because electricity costs represent only approximately 7% of AI data center operational costs, and savings are offset by higher space transport fees, maintenance costs, and communication latency. He emphasized that the AI race will be determined by computing power on Earth within the next decade.
How much is SoftBank investing in France for AI infrastructure?
On May 31, SoftBank announced an investment of up to €75 billion in France to build a large-scale AI computing cluster network, including Europe's largest data center to date with a total capacity projected at 5 gigawatts. The data center will serve the French market and provide computing power services to customers in neighboring countries.
What is SoftBank's stake in OpenAI?
SoftBank has cumulatively invested over $64 billion in OpenAI, securing approximately 13% equity stake, making it the second-largest external investor after Microsoft.
