SoftBank Acquires Foxconn’s Ohio Plant for Stargate AI Project
▼ Summary
– SoftBank is reportedly the mystery buyer of Foxconn’s former GM factory in Lordstown, Ohio, planning to use it for AI servers in the Stargate data center project.
– Foxconn sold the factory and EV equipment to “Crescent Dune LLC,” a Delaware-based entity created in July, but neither company has commented.
– Monarch Tractor, Foxconn’s sole remaining customer at the Ohio factory, faces uncertainty as its CEO has not responded to inquiries.
– The Stargate project, involving SoftBank, OpenAI, and Oracle, aims to expand beyond its Texas data center but faces funding and trade war challenges.
– Foxconn acquired the factory in 2021 to create an EV hub, but Lordstown Motors and other prospective customers later went bankrupt.
SoftBank has reportedly acquired Foxconn’s Ohio manufacturing facility to support its ambitious Stargate AI data center initiative, according to recent reports. The Japanese investment giant plans to repurpose the former General Motors plant in Lordstown for AI server production, marking a strategic shift in the site’s original electric vehicle focus.
Foxconn recently confirmed the sale of the factory and its EV manufacturing equipment to an entity named Crescent Dune LLC, a Delaware-registered company formed in July. While neither SoftBank nor Foxconn has officially commented, sources indicate the buyer is linked to SoftBank’s high-profile collaboration with OpenAI and Oracle on the Stargate project.
The move raises questions about the future of Monarch Tractor, the sole remaining client of Foxconn’s Ohio operations. The California-based agtech startup, specializing in autonomous electric farm equipment, had relied on the facility for contract manufacturing. Monarch’s CEO has yet to address how the sale might impact production.
Originally announced shortly after Donald Trump’s presidency began, Stargate represents a multibillion-dollar effort to build next-gen AI infrastructure. While construction is already underway on a Texas data center, SoftBank has faced funding challenges and trade policy hurdles that could influence expansion plans.
Foxconn acquired the Lordstown plant in 2021 from struggling EV maker Lordstown Motors, with ambitions to establish a North American EV manufacturing hub. However, the facility’s prospects dimmed as key partners, including Fisker and IndiEV, collapsed. Now, SoftBank’s pivot toward AI infrastructure could breathe new life into the site, though its long-term role in Monarch’s operations remains uncertain.
(Source: TechCrunch)
