SoftBank Reportedly Acquires Foxconn’s Ohio Factory for Ambitious Stargate AI Project

SoftBank is reportedly the mystery buyer of the former General Motors factory in Lordstown, Ohio, previously owned by Foxconn. According to Bloomberg News, the Japanese conglomerate intends to repurpose the facility to construct AI servers, a crucial step in its expansive Stargate data center initiative. This ambitious project is a collaborative effort involving SoftBank, artificial intelligence leader OpenAI, and technology giant Oracle.

The acquisition comes shortly after Foxconn announced the sale of the plant and its associated electric vehicle (EV) manufacturing equipment to an entity named “Crescent Dune LLC,” which was established in Delaware in late July. Neither Foxconn nor SoftBank immediately responded to requests for comment on the transaction.

The future of Monarch Tractor, a California-based startup specializing in electric and autonomous farm equipment, remains uncertain in light of this development. Monarch was the sole client for Foxconn’s contract manufacturing operations at the Ohio facility, following the bankruptcy of three other prospective customers. Attempts to reach Monarch CEO Praveen Penmetsa for comment have been unsuccessful.

The Stargate project, a joint venture between SoftBank, OpenAI, and Oracle, was unveiled shortly after Donald Trump’s inauguration. While a significant data center is currently under construction in Texas, the partners have expressed intentions to expand their infrastructure footprint across other U.S. states and internationally. Earlier reports from Bloomberg in May indicated that SoftBank faced challenges in securing funding for the project, with potential disruptions arising from ongoing trade disputes.

Foxconn originally purchased the Lordstown factory in late 2021 from the electric vehicle startup Lordstown Motors. At the time of the acquisition, Foxconn chairman Young Liu envisioned the site becoming “the most important electric vehicle manufacturing and R&D hub in North America.” The sale was finalized in 2022. However, Lordstown Motors filed for bankruptcy protection just one year later, and other intended customers, including Fisker Inc. and IndiEV, also ceased operations.

This strategic acquisition by SoftBank signals a significant pivot towards bolstering AI infrastructure, leveraging the substantial manufacturing capabilities of the Ohio facility for the Stargate project’s ambitious goals.