SoftBank’s $50B Switch takeover for Stargate AI stalls amid cost, control and credit concerns

On January 26 2026, reports indicated that Masayoshi Son has halted SoftBank’s planned $50 billion acquisition of U.S. data center operator Switch, a deal meant to underpin the $500 billion Stargate AI infrastructure initiative. SoftBank instead completed a $3 billion purchase of DigitalBridge and is now exploring smaller investment or partnership structures with Switch, while its aggressive AI spending and use of Arm shares for margin loans draw fresh scrutiny from credit rating agencies. The shelved buyout leaves Stargate’s data center strategy unresolved as Switch’s backers weigh a potential IPO valuing the company at about $60 billion including debt.