SoftBank Buys Foxconn Ohio Factory for Stargate AI Project

SoftBank Identified as Buyer of Former GM/Foxconn Lordstown Factory

Recent reports from Bloomberg News indicate that SoftBank is the previously undisclosed purchaser of the former General Motors manufacturing plant in Lordstown, Ohio, which was previously owned by Foxconn.

AI Server Production Planned

SoftBank intends to utilize the facility for the production of AI servers. This initiative is a key component of the Stargate data center project, a collaborative effort involving the Japanese conglomerate, OpenAI, and Oracle.

Details of the Acquisition

The revelation follows Foxconn’s recent announcement regarding the sale of the factory and its associated electric vehicle manufacturing equipment.

The buyer was initially identified only as “Crescent Dune LLC,” a newly formed entity registered in Delaware in late July. Neither Foxconn nor SoftBank have yet issued a formal response to requests for clarification.

Implications for Monarch Tractor

The implications of this sale for Monarch Tractor, a California-based developer of electric and autonomous agricultural machinery, remain uncertain.

Monarch Tractor was the sole client utilizing Foxconn’s contract manufacturing services at the Ohio location. This occurred after three other potential customers of the Taiwanese technology firm faced bankruptcy.

Attempts to obtain a statement from Monarch Tractor CEO Praveen Penmetsa have, as of yet, been unsuccessful.

The Stargate Project: A Broader Perspective

The Stargate project was initially unveiled shortly after the inauguration of Donald Trump.

Currently, the project centers around a substantial data center under construction in Texas. However, the participating companies have expressed ambitions to expand infrastructure development to additional states and international locations.

Bloomberg previously reported in May that SoftBank was encountering difficulties in securing the necessary funding for the project. Furthermore, the project’s progress was reportedly hindered by the trade policies enacted during the Trump administration.

Foxconn’s Initial Investment and Lordstown Motors’ Fate

Foxconn acquired the factory from electric vehicle startup Lordstown Motors in late 2021.

At the time of purchase, Foxconn Chairman Young Liu articulated a vision for the site to become a leading electric vehicle manufacturing and research & development center within North America.