SoftBank Acquiring DigitalBridge: The AI Power Play

Most investors chase the companies building the smartest chatbots, but the real power players quietly buy the dirt where the servers live. According to The Guardian, SoftBank made a decisive move on Monday, December 29, 2025, to secure the physical ground beneath the artificial intelligence revolution. They announced an all-cash deal valued at $4 billion to purchase DigitalBridge, a massive owner of digital infrastructure. This acquisition shifts the focus from software code to the concrete and cables that keep the internet running. 

The deal highlights a major change in how global tech giants view value. SoftBank acquiring DigitalBridge represents a strategic pivot toward owning the entire supply chain of AI. They are paying $16.00 per share, which gives shareholders a solid 15% premium. This purchase adds DigitalBridge’s $108 billion in assets to SoftBank’s growing empire. The goal is simple. SoftBank wants to control the hardware, the network, and the cloud capacity necessary for Artificial Super Intelligence to exist. 

The Cash Deal Rewriting AI Investment 

Cash offers signal urgency rather than simple polite interest. SoftBank put $4 billion on the table because they see a closing window to own critical assets. Reuters reported that DigitalBridge shares rose about 9.7% on Monday to $15.27, following a 45% rise earlier in the month, showing the market understands the stakes. SoftBank acquiring DigitalBridge goes beyond a standard merger. It acts as a race to secure physical space before it runs out. 

The price tag reflects the scarcity of quality infrastructure. Building new data centers takes years, but buying them provides instant capacity. SoftBank pays a premium now to avoid waiting in line later. Users often wonder about the specific motivation behind these massive numbers. Why is SoftBank buying DigitalBridge? SoftBank wants control over the physical data centers and power grids that Artificial Intelligence needs to run. They are buying the factory floor so they can dictate the terms of production for the next decade. 

Understanding the Full Stack Thesis 

Owning the software means nothing if you have to rent the server from a competitor. SoftBank currently operates under a "Full Stack" thesis. This mental model drives them to own every layer of the AI process. They want the chips, the code, and the buildings that hold them. The demand for computing power currently exceeds the supply. Tech companies fight for server space, and prices for that space continue to rise. 

SoftBank views physical assets as the bottleneck for progress. You cannot run advanced AI models without massive warehouses full of computers. This acquisition removes the reliance on third-party landlords. Bringing DigitalBridge in-house allows SoftBank to secure its own operational continuity. They ensure their other AI investments, like those in OpenAI, always have a home. The move solidifies the foundation for upcoming data centers that will drive the industry forward. 

The Stargate Project Explains the Scale 

Artificial intelligence consumes electricity like a small nation, creating a desperate need for power. According to The Register, the "Stargate Project" sits at the center of this new partnership, spanning five sites in Texas, New Mexico, Ohio, and the Midwest. The report notes that these sites, combined with existing facilities, target a massive computing capacity of 7 gigawatts. To put that in perspective, one gigawatt can power hundreds of thousands of homes. SoftBank acquiring DigitalBridge allows them to push this project faster than a standalone company could. 

The geography matters as much as the technology. You need vast amounts of cheap land and accessible power grids to support 7 gigawatts. These specific states offer the right mix of space and energy regulation. What does DigitalBridge actually own? As noted by DataCenterDynamics, they manage a massive portfolio of roughly $108 billion in assets, specializing in cell towers, fiber networks, and data centers. The Stargate Project utilizes these types of assets to build a network capable of training the next generation of AI models. 

DigitalBridge's Evolution from Real Estate 

Old buildings eventually lose value, but digital towers only gain importance as the world connects more devices. According to a 2021 company press release, DigitalBridge started its life as Colony Capital in 1991, focusing on traditional real estate before rebranding to reflect a significant business transformation. They shifted focus after realizing that digital infrastructure offered better returns than office buildings or shopping malls. This pivot saved the company from the recent downturn in commercial real estate. 

Their portfolio now includes major names like DataBank, Vantage Data Centers, and Switch. They also hold assets in Zayo, AtlasEdge, and Vertical Bridge. This collection covers everything from the fiber optic cables in the ground to the towers beaming signals through the air. SoftBank acquiring DigitalBridge validates this shift. This confirms that the pivot from bricks to bytes was the correct long-term play. The company effectively turned itself into the backbone of the modern internet before selling to the highest bidder. 

Image Credits- Wikimedia Common

SoftBank’s High-Stakes Financial Gamble 

Rapid expansion often requires betting the future to pay for the present. SoftBank has a history of using heavy debt to fuel its ambitions. The Wall Street Journal reports that the first $10 billion of their new funding plan would be financed by borrowing from Mizuho, with another $30 billion targeted for 2026. On top of that, they are seeking $16.5 billion in new loans. These numbers are staggering. The company is betting everything on the belief that AI revenue will cover these massive costs. 

Critics point to SoftBank’s past "spending sprees" on risky ventures like WeWork. They worry that this debt-fueled approach exposes the company to danger if the AI bubble bursts. However, the assets here are different. Data centers are tangible property, not just shared office concepts. The risk remains high, but the collateral is real. This financial context adds a layer of tension to the deal. They are borrowing from tomorrow to dominate today. 

Why Leadership Stays the Same 

Disruption at the top usually destroys momentum at the bottom. Acquisitions often lead to firing sprees and new bosses, but SoftBank chose a different path here. Marc Ganzi will remain the CEO of DigitalBridge. The company will function as a separately managed platform within the SoftBank family. This decision suggests that SoftBank trusts the current direction of the business. They want the assets, but they also want the experts who know how to manage them. 

Keeping the leadership team in place ensures the Stargate Project stays on track. Changing commanders in the middle of a war usually leads to defeat. Ganzi and his team have shared values with SoftBank regarding construction speed and long-term goals. They understand how to serve global tech giants. Leaving the management structure alone allows SoftBank to avoid the chaos that usually follows a buyout. They get the control they want without breaking the machine that creates the value. 

The Roadmap to Closing the Deal 

Announcements are easy to make, but closing a multi-billion dollar deal takes months of legal work. The process is currently pending regulatory approval. Governments look closely at deals involving critical infrastructure to ensure they do not create monopolies. SoftBank acquiring DigitalBridge must pass these checks before money changes hands. The target closing date is set for the second half of 2026. 

Until then, the two companies operate independently but with a shared vision. The timeline allows SoftBank to line up the necessary financing. It also gives DigitalBridge time to prepare for integration into the SoftBank ecosystem. Is the DigitalBridge deal finished yet? No, the deal is still pending regulatory approval and targets a closing date in the second half of 2026. Both sides remain confident, but in the world of high finance, nothing is final until the signatures are on the paper. 

The Landlord of the AI Age 

This acquisition proves that the digital world relies entirely on physical foundations. SoftBank acquiring DigitalBridge is the clearest signal yet that big tech is moving from software speculation to hard asset accumulation. By securing the data centers, fiber lines, and power capacity, SoftBank positions itself as the landlord of the AI age. They do more than participate in the boom. They own the infrastructure that makes the boom possible. As the Stargate Project ramps up and the deal heads toward a 2026 close, the message is clear: the future belongs to those who own the ground it is built on.