SoftBank to Acquire DigitalBridge for $4B: Powering AI Infrastructure & Data Centers

The acquisition of DigitalBridge by SoftBank represents a calculated move to deepen its foothold in the AI infrastructure domain—evolving beyond software and model investments into owning more of the physical backbone that supports large-scale AI deployment. With AI compute demand surging, owning data centers, fiber networks, cell towers, and edge infrastructure offers not just revenue streams but strategic control over supply chains, geographic resilience, latency, and power/density constraints.

From a valuation standpoint, the deal price of $16 per share reflects a 15% premium over the recent market close and a substantial premium over longer-term averages, hinting that SoftBank sees unmet intrinsic or strategic value beyond current public market sentiment. Yet, given the relatively modest size of the transaction (US$4B) compared to DigitalBridge’s US$108B in assets under management (AUM), the implied margin on “core infrastructure” holdings and monetization of non-core or underperforming assets will come under scrutiny—especially in light of increasing capital and regulatory costs in data center and telecom infrastructure sectors.

Maintaining DBRG as a separately managed platform suggests both sides believe in preserving existing management expertise, organizational culture, and operating model—presumably to avoid disruption and retain operational agility. For SoftBank, this minimizes integration risk, while for DigitalBridge it preserves its identity and relationships. However, long-term alignment will depend on capital allocation decisions, investment return expectations, and consistency in ESG/regulatory compliance across jurisdictions.

Strategically, this strengthens SoftBank’s ASI (“Artificial Super Intelligence”) vision by providing more capacity downstream; it complements recent moves such as divesting Nvidia exposure and committing more capital toward OpenAI and related AI R&D. However, it also raises exposure to risks: regulatory scrutiny over infrastructure consolidation, escalating power and land costs, competition in hyperscale infrastructure, macroeconomic headwinds (e.g. interest rates, inflation), and possibly overpaying depending on DBRG’s asset utilization and margins over time.

Open questions include: What is the expected return on invested capital (ROIC) for SoftBank in this acquisition? How does DigitalBridge’s existing project pipeline—especially in under-penetrated or high-cost places—factor into capacity and revenue projections? To what extent can SoftBank leverage synergies (operational, financing, supply chain) without undermining DBRG’s autonomy? And what regulatory or antitrust obstacles may arise given SoftBank’s growing infrastructure presence?