SoftBank to Acquire DigitalBridge for $4B: Reinforcing AI Infrastructure Ambitions

This acquisition signals SoftBank’s transition from investor in AI-adjacent technologies toward ownership and control of core infrastructure required for large-scale AI deployments. DigitalBridge brings an already scaled platform managing $108 billion in assets across crucial infrastructure assets—data centers, network fiber, towers, edge nodes—that are increasingly the bottlenecks for expanding AI capacity globally. By acquiring rather than simply partnering or funding, SoftBank reduces strategic and operational risk linked to supply chain, site selection, power procurement, and regulatory hurdles around infrastructure deployment.

Financially, the $4 billion price tag represents modest multiples given the scale and strategic value of the target: 15% premium over recent market price and ~50% over longer-term averages, which suggests the deal was negotiated in a seller-friendly environment. SoftBank is paying a premium despite DigitalBridge’s mixed profitability metrics, indicating value here lies more in platform, pipeline, asset base and future upside tied to AI demand rather than current EPS performance. The all-cash deal could pressure SoftBank’s capital allocation, especially given its ongoing AI-related investments including Stargate and its earlier divestitures (e.g. Nvidia stake) to redirect capital. Managing regulatory risk for cross-border infrastructure ownership and national security concerns will be essential during the H2 2026 closing period.

Strategically, SoftBank can leverage DigitalBridge to accelerate its own infrastructure initiatives. The deal feeds directly into Project Stargate—SoftBank’s joint AI infrastructure initiative with OpenAI, Oracle, and MGX—by providing managed platforms capable of delivering scale not just in compute but in connectivity, power, and real estate—elements essential for hyperscale AI centers. For DigitalBridge, this deal provides deeper capital reserves, potentially lower cost of capital, and potential expansion into geographies or segments where SoftBank has relationships or ambitions.

However, risks remain: valuations may overshoot fundamentals if AI demand slows; regulatory scrutiny in multiple jurisdictions could delay or limit value; large infrastructure assets require long investment horizons and face exposure to rising energy and real-estate costs; maintaining DigitalBridge’s operational stamina and independent culture is critical to preserve its differentiated investment model. For SoftBank, balancing this infrastructure bet with its financial flexibility amid ongoing investments will be key.