SoftBank Hits Brakes on Talks to Buy Data Center Firm Switch (1)

SoftBank Group Corp. has halted talks about an acquisition of US data center operator Switch Inc., a setback to founder Masayoshi Son’s ambition to roll out Stargate AI infrastructure, according to people familiar with the matter.

For months, Son pursued a deal of around $50 billion for Switch, convinced that direct control of the latter’s network of energy-efficient data centers would help the $500 billion Stargate push to generate computing power for partner OpenAI.

But earlier this month, Son conceded that a full acquisition was off the table and scrapped a planned January announcement, the people said, ...