DigitalBridge Group Inc. stock surged on Monday on news that Japan-based SoftBank Group is engaged in detailed discussions over the acquisition of the data center investment company, a fact that highlights the increasing global competition over infrastructure essential to artificial intelligence.
The New York-listed stock shot up to as much as 50 percent in premarket deals, and then reversed. By early morning in New York, shares were still up roughly 34%, marking one of DigitalBridge’s strongest single-day moves on record. The stock market outburst catapulted the annual returns of the company to above 20 percent, as investors re-embarked on the company because of its involvement in the booming AI infrastructure space.
According to Bloomberg, quoting individuals close to the situation, SoftBank may declare a deal as early as Monday. SoftBank and DigitalBridge also refused to comment on the report, and CNBC added that it has contacted the representatives of the two companies to seek clarity.
A Strategic Bet on AI Infrastructure
The reported talks highlight SoftBank’s continued push to deepen its footprint in artificial intelligence, particularly in the physical infrastructure required to power large language models and advanced AI systems. Data centers, required in the training, deployment, and scaling of AI applications, have become some of the most demanded resources in global markets.
The successive fluctuations surrounding aggressive technology bets have led SoftBank to become a long-term investor in AI. Founder Masayoshi Son has many times called artificial intelligence the technological shift of the next several decades, with infrastructure the foundation of the revolution.
DigitalBridge, a company that identifies itself as a digital infrastructure investment company, owns and controls assets that comprise of data centers, cell towers, fiber networks, and small-cell infrastructure. According to the information presented on the website, as of the end of September, the firm had assets under management of about 108 billion.
If completed, the acquisition would represent one of SoftBank’s most significant infrastructure-focused deals in recent years and would further signal its intent to control the assets enabling AI growth rather than merely investing in application-layer companies.
Market Reaction Signals Strong Confidence
The high share price change of DigitalBridge represents the extent to which investors are considering AI-connected infrastructure as one of the most valuable investments, given the hyperscaler, cloud, and AI startup demand. Analysts observe that, unlike more speculative AI software companies, data center operators have comparatively consistent, long-term cash flows.
“Investors see data centers as the ‘picks and shovels’ of the AI boom,” said one infrastructure-focused portfolio manager. “Whether AI adoption accelerates or slows, demand for computing power continues to rise.”
DigitalBridge’s exposure to global markets and diversified infrastructure portfolio has made it a standout beneficiary of this trend. The firm has positioned itself as a capital allocator rather than a pure operator, partnering with regional specialists while retaining strategic oversight.
SoftBank’s Recent Portfolio Shifts
The reported talks come shortly after SoftBank made headlines by selling its entire stake in U.S. chipmaker Nvidia for approximately $5.83 billion. That move surprised markets, given Nvidia’s central role in AI computing, but analysts said it freed up capital for other strategic investments.
SoftBank has also remained committed to building a more enduring relationship with OpenAI, indicating that it prefers to have a vertically integrated AI ecosystem that covers software, compute, and infrastructure. A takeover of DigitalBridge would fit such a vision by providing SoftBank with more dominance in the physical layer of AI workloads.
The Japanese investment giant has been under pressure over the last few years to show more discipline following the loss in its Vision Fund amidst the tech downturn. A transition into revenue-generating infrastructure can be used to stabilize returns and remain exposed to long-term AI growth.
Data Centers at the Center of the AI Boom
Due to the rush in the deployment of generative AI tools, which consume massive amounts of computational resources, the data center demand in the world has soared drastically. Large language models are highly energy and processing intensive to train and run, compelling investment both in real estate and the energy infrastructure.
The global scale of data center capacity is estimated to grow significantly within the upcoming decade, increasing to meet the demands of AI. This has contributed towards consolidation within the sector as private equity, sovereign wealth funds, and strategic investors have fought over high quality assets.
Recent transactions with data center operators have been at a high price, based on the rarity and long-term growth prospects. According to analysts, trends make companies such as DigitalBridge attractive targets for takeover, especially to investors who have patient capital.
What a Deal Could Mean for DigitalBridge
To DigitalBridge shareholders, a SoftBank acquisition would not only deliver short-term value through a buyout premium but it would also open up greater access to capital pools so that the firm can speed up its growth. In the case of SoftBank, the acquisition would reinforce its capability to influence the AI infrastructure ecosystem in the world.
However, challenges remain. Government regulation may be an issue, depending on the structure of the deal and the geographical exposure, since data infrastructure is a strategic asset. The terms of financing and valuation will also be in focus as interest rates are still high in the environment.
Still, market reaction suggests investors believe the strategic logic outweighs the risks.
“This is exactly the type of asset long-term AI investors want,” said another analyst. “It’s hard infrastructure, it’s essential, and it benefits from multi-year demand visibility.”
Broader Implications for Tech Markets
The potential acquisition adds to a growing list of deals highlighting a shift in tech investment priorities. Rather than focusing solely on consumer-facing platforms or experimental technologies, investors are increasingly targeting foundational assets that enable digital transformation.
That trend has broader implications for public markets, where infrastructure-linked stocks have often lagged flashy AI names despite offering more predictable earnings. A high-profile deal could prompt renewed interest in the sector and spark further consolidation.
As 2025 draws to a close, the DigitalBridge-SoftBank talks underscore a key theme shaping global markets: artificial intelligence is no longer just a software story. It is an infrastructure race—one that requires massive capital, long-term vision, and strategic execution.