 "Softbank's Masayoshi Son eyeing creating joint sovereign wealth fund between US, Japan for big ticket tech investments")
SoftBank founder Masayoshi Son has proposed the creation of a joint sovereign wealth fund between the United States and Japan aimed at large-scale investments in technology and infrastructure projects across the US.
Discussions regarding the idea have reached high-level officials in both Washington and Tokyo, Financial Times reported citing three individuals familiar with the matter. Though no formal proposal has yet emerged, the fund could serve as a model for other nations looking to strengthen investment relationships with the US.
Son has reportedly raised the concept directly with US Treasury Secretary Scott Bessent and other senior government figures in recent weeks, coinciding with ongoing US-Japan trade negotiations . Japan continues to advocate for a zero-tariff arrangement, while US negotiators have stated that tariffs will remain at a baseline of at least 10 per cent.
After a recent telephone conversation with US President Donald Trump, Japanese Prime Minister Shigeru Ishiba indicated that he expects their upcoming meeting at the G7 summit in Canada in mid-June to be pivotal in advancing trade talks.
Under the proposed arrangement, the US Treasury and Japan’s Ministry of Finance would jointly manage and own the fund, each holding substantial stakes. The partnership could later open to additional investors, potentially even allowing ordinary citizens from both nations to participate.
An individual familiar with the discussions noted that for the fund to meet its investment goals, it would require substantial initial funding, possibly $300 billion, supplemented by significant leverage.
Impact Shorts
More ShortsOfficials see potential benefits in the sovereign wealth fund as it could generate new revenue streams for both governments without raising taxes. “The theory is that Bessent is looking for revenue streams for the Treasury that do not involve raising taxes, and however far out this joint fund may sound, it would in theory provide that,” said one individual briefed on the details. The source added that the US views this as a shift away from previous investment strategies, potentially setting a precedent for future government-to-government financial partnerships.
Japan seeks clear governance to avoid the uncertainties associated with political decisions made in Washington, aiming for stable and transparent management of the fund.
Son, known for his close ties to President Trump , previously unveiled a $500 billion project in January dubbed Stargate, aiming to establish data centres and artificial intelligence infrastructure in the US in collaboration with companies such as OpenAI and Oracle. This type of initiative could attract funding from the proposed US-Japan joint sovereign wealth fund, according to individuals familiar with Son’s objectives.
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