SoftBank’s $4B Buyout of DigitalBridge Marks Pivot into AI Infrastructure

The deal reflects a clear strategic inflection point for SoftBank, transforming it from principally a financial backer of AI platforms and technology firms into an integrated infrastructure owner. With DigitalBridge’s portfolio of AUM (~US$108 billion) spanning data centers, fiber, towers, small cells, and edge infrastructure globally, SoftBank adds a crucial layer of vertical control over the physical inputs powering AI—compute, connectivity, power, and “last-mile” edge capacity. [1][6]

The $16 per share offer, at a 15% premium to recent closing prices, suggests negotiating leverage by SoftBank and a valuation that reflects both current infrastructure scarcity and future demand. Its 50% premium over the 52-week average (as of early December) underscores market undervaluation or perhaps anticipated upside tied to AI demand growth. [4][1]

Keeping DigitalBridge as a separately managed platform under Marc Ganzi allows SoftBank to preserve organizational expertise, relationships with limited partners, and the agility inherent in specialized infrastructure investing. This structure should help mitigate integration risk while enabling SoftBank to lean more aggressively into AI infrastructure investment. [1][6]

Financially, replacing financial exposure via asset management with ownership in core infrastructure assets shifts the risk-return profile: more capital expenditure, more power/capacity/real estate risk, but also potentially higher long-term margins, sticky revenues, and control over supply constraints—especially relevant in a sector where demand for high-density AI compute is surging.

However, there are open risks and questions. Regulatory approval looms, particularly in cross-border infrastructure asset ownership and potential national security scrutiny of data center and fiber networks. SoftBank will need to fund the deal amidst other major AI investments (OpenAI, Stargate, etc.), which could pressure leverage or force divestitures. Also, managing DigitalBridge’s existing liabilities, long-cycle projects, and capital intensity could weigh on near-term margin performance.

Strategically, the move signals that in 2026 SoftBank expects the AI arms race to increasingly revolve around infrastructure bottlenecks as much as model or algorithmic advances. Companies that control real estate, power, cooling, fiber connectivity and edge deployments may become as valuable as the software platforms. This acquisition puts SoftBank ahead of many peers who are still landlords or financiers rather than operators and owners.