SoftBank founder Masayoshi Son’s grandest artificial intelligence (AI) plan yet, a $1 trillion AI/robotics high-tech industrial hub in Arizona christened Project Crystal Land, would turn the Southwest region into a AI manufacturing center rivaling Shenzhen.
The audacious vision, as reported by Bloomberg, is in its early stages and seeks assistance from TSMC, Samsung Electronics, and the federal government to advance AI systems and robotics development to position the U.S. as the undisputed leader in high-tech manufacturing and AI. The massive site would presumably host factories operated by SoftBank-backed startups in robotics and automation, Vision Fund portfolio companies like Agile Robots SE, and — potentially — TSMC and Samsung.
The participation of TSMC, which helps fabricate NVIDIA Corp. AI processors, is cloudy given TSMC’s current plan to invest $165 billion in U.S. projects with no ties to SoftBank, a source told Bloomberg.
As part of its pitch to the U.S. government, including Commerce Secretary Howard Lutnick, SoftBank is proposing potential federal- and state-level backing that includes tax incentives. The sheer scope and scale of Project Crystal Land means SoftBank is considering a financing model similar to large infrastructure developments that rely on project-based funding to augment and ease its own capital investment, according to the report.
SoftBank is considering project-based financing structures often used in large infrastructure developments like pipelines that would allow fundraising on a per-project basis and reduce the amount of upfront capital required from SoftBank. A similar model is being explored for the Stargate AI data center initiative, the $500 billion project SoftBank is pursuing with OpenAI, Oracle Corp., and Abu Dhabi’s MGX that so far has not raised funds are quickly as initially expected.
SoftBank and TSMC declined comment. The White House and Department of Commerce did not immediately respond to requests for comment.
“Aligned with U.S. strategic objectives, especially under the Trump administration, the project seeks to strengthen domestic tech manufacturing and lessen dependence on foreign supply chains,” Ron Westfall, an analyst at HyperFRAME Research, said in an email. “It promises to generate thousands of jobs, spur economic development, and establish Arizona as a leader in AI and semiconductor advancements.”
“However, Project Crystal Land is still in its preliminary phase, with its success dependent on several key factors. Gaining government backing through tax breaks and regulatory approvals is crucial,” Westfall added. “From my view, SoftBank risks diluting its strategic focus and resources embarking on Project Crystal Land before demonstrating that Project Stargate can overcome energy demand and funding concerns in achieving tangible mileposts and objectives. This represents two major juries that are out.”
Reports of Project Crystal Land surface as SoftBank aggressively broadens its already prodigious AI investment portfolio. In addition to Stargate, the Japanese company is prepping up to a $40 billion investment in OpenAI and in March it announced it planned to acquire Ampere Computing, a cloud native CPU company, for $6.5 billion. This week, SoftBank raised $4.8 billion from a sale of shares in T-Mobile.
