SoftBank Drops a €75 Billion AI Bomb on France

SoftBank pledged €75 billion (≈$87bn) to build a 5GW AI data-center network in France, starting with €45bn to deliver 3.1GW by 2031 and an initial core facility in Dunkirk. Markets reacted positively: European tech stocks and indices rallied (the Stoxx Europe technology sub-index rose ~1.4%), and select chip and software names have seen sharp YTD gains. The move reshapes the AI infrastructure landscape by leveraging France’s low-carbon nuclear baseload, could shift hardware procurement toward European suppliers, and narrows the valuation gap between European tech (≈28x forward earnings) and the Nasdaq (≈35x). The announcement also strengthens SoftBank’s strategy of owning physical AI infrastructure alongside its stakes in Arm and OpenAI-related investments, prompting investors to reassess European tech exposure and winners from potential contract allocations.