SoftBank Halts Its Bid to Acquire Switch Operator

Published on January 28, 2026 | Translated from Spanish
Representative image of the SoftBank Group logo alongside an illustration of a modern data center, symbolizing the halted acquisition deal.

SoftBank Halts Its Attempt to Buy Switch Operator

The Japanese technology conglomerate SoftBank Group has decided to completely halt talks to take control of the US data centers operator Switch. The deal, estimated at around 50 billion dollars, has been abruptly canceled, according to sources close to the process. 🛑

A Halt to a Key Strategy for Artificial Intelligence

Masayoshi Son, the founder and main executive of SoftBank, considered direct control of Switch's network a fundamental element to boost its ambitious Stargate project. This plan, valued at 500 billion dollars, aims to build specialized artificial intelligence infrastructure within the United States. The cancellation leaves this megaproject without its planned infrastructure pillar.

Key Details of the Suspended Deal:
  • The official announcement of the purchase, scheduled for January, was canceled by Son.
  • The acquisition would have been one of the largest in SoftBank's history.
  • Son saw this purchase as a crucial instrument for the Japanese firm to compete in global AI development.
"Sometimes, even budgets of hundreds of billions encounter a wall of reality they cannot breach."

Consequences for the Stargate Project and Its Allies

By recognizing that acquiring Switch is no longer viable, SoftBank loses the initial momentum it hoped for in its infrastructure plan. This decision suspends a massive investment that aimed to position the company as a relevant player in a market dominated by US tech giants.

Affected Commitments and Collaborations:
  • An immediate injection of 100 billion dollars had been promised along with partners.
  • Among the allies are OpenAI, Oracle and the Abu Dhabi MGX fund.
  • The Stargate project must now seek an alternative path to materialize without Switch's network.

A Setback in the Race to Dominate AI Infrastructure

This cancellation represents a significant obstacle for SoftBank's strategy. The Stargate project, despite its enormous budget, faces the need to rethink how to build or access the necessary data center infrastructure to compete. The decision underscores the practical difficulties that even the best-funded plans can encounter when trying to penetrate a critical and highly competitive infrastructure market. 🤔