In a groundbreaking move that aligns with the shifting dynamics of technology infrastructure, SoftBank has reportedly acquired Foxconn’s factory in Lordstown, Ohio. The factory, once envisioned as a hub for electric vehicle (EV) manufacturing, is now set to support SoftBank’s Stargate AI Project, focused on building AI servers for next-generation artificial intelligence applications. This article explores the implications of this acquisition for startups and entrepreneurs, detailing the steps SoftBank took, lessons learned, and benefits of adapting outdated infrastructure for cutting-edge technologies.
Whether you're a startup founder planning your next big move or a business owner looking to stay ahead of industry trends, this article provides actionable insights.
Why the Ohio Factory Matters for AI Infrastructure
Foxconn's Lordstown factory was initially intended as North America’s premier EV manufacturing hub. However, following multiple collapsed ventures in the EV space, including Lordstown Motors and Fisker Inc., the plant has been repurposed for SoftBank’s Stargate AI Project. The Stargate initiative, a collaboration between SoftBank, OpenAI, and Oracle, aims to create a vast network of AI server data centers across the United States.
Key Statistics
- SoftBank plans to invest $500 billion in AI infrastructure over the next four years.
- The Ohio plant’s strategic location allows easy access to talent and connectivity across the U.S.
- AI infrastructure projects like Stargate are predicted to support hundreds of thousands of jobs and generate substantial economic growth.
Steps SoftBank Took to Transition the Ohio Factory
1. Identified Opportunity
SoftBank recognized the failing EV industry as a chance to repurpose industrial infrastructure for AI development. The Ohio factory had already been equipped with advanced manufacturing systems.
2. Acquired Assets
SoftBank reportedly purchased the property through a Delaware entity, Crescent Dune LLC, in July 2025. This stealth approach ensured minimal regulatory friction during the acquisition.
3. Aligned Stakeholders
Collaboration with OpenAI and Oracle allowed SoftBank to pool resources, align goals, and share responsibility for Stargate’s rollout.
4. Reimagined Use Case
By shifting the factory’s focus from EV manufacturing to AI infrastructure, SoftBank exemplified how startups and established firms can pivot existing assets to new, profitable ventures.
Benefits of the Transition
- Job Creation: The factory will host AI server production, creating thousands of local jobs.
- Future-Resistant: AI infrastructure is set to dominate global technology markets, ensuring long-term viability.
- Scalable Platform: Facilities like the Ohio plant act as exemplary models for repurposing industrial infrastructure in other regions.
Lessons for Entrepreneurs and Startup Founders
Lesson 1: Adaptability is Key
Foxconn’s failure in EV manufacturing demonstrates the importance of pivoting when industries face saturation. SoftBank’s leadership in repurposing assets is an excellent blueprint for resourcefulness.
Lesson 2: Strategic Collaboration Wins
Stargate’s collaboration with OpenAI and Oracle highlights the importance of forming strategic, multidisciplinary partnerships, something startup founders should emulate.
Lesson 3: Invest in AI Infrastructure
AI is transforming industries at an unprecedented pace. Entrepreneurs should align their ventures with AI-based solutions to stay relevant.
How to Fund and Build AI-Focused Startups
To help startups secure necessary funding for AI projects, F/MS Startup Game has introduced F/MS AI Grant Finder and Application Writer. This tool simplifies the process of finding and applying for EU grants, offering personalized recommendations and even drafting application texts.
If you're working on AI servers, data centers, or other infrastructure projects, try the Grant Finder to jumpstart your funding journey and get aligned with SoftBank’s vision for global AI dominance.
Most Common Mistakes to Avoid in Startups
Mistake 1: Ignoring Collaboration Platforms
Working independently can limit your growth. Collaborate with AI co-founders like PlayPal, an AI-driven mentor designed to help entrepreneurs strategize and solve problems effectively.
Mistake 2: Underestimating Grant Opportunities
Failing to secure funding can stall your progress. Explore tools like F/MS AI Grant Finder early in your startup journey.
Mistake 3: Overlooking Legal Frameworks
Startups can face legal obstacles. Protect your business by using tools like AI Startup Lawyer, which can help you evaluate agreements, avoid risky clauses, and ensure GDPR compliance.
Actionable Guide: What Entrepreneurs Can Learn from SoftBank
Step 1: Identify Trends
Look for industries transitioning from outdated models to cutting-edge technologies. Focus your startup idea on solving inefficiencies in these sectors.
Step 2: Build an AI Component
Integrating AI into your business model enhances scalability and competitiveness.
Step 3: Secure Resources
Use tools like F/MS AI Grant Finder to access funding opportunities tailored to your project.
Add for PlayPal: Your AI Co-Founder
If you're looking for a virtual assistant to guide your startup journey, check out PlayPal, the AI Friend. Developed by Fe/male Switch, PlayPal offers conversational support, problem-solving advice, and personalized recommendations. It acts as your AI co-founder, helping you meet challenges head-on while saving time and effort.
Whether you're discussing intellectual property, grant applications, or customer personas, PlayPal provides tailored responses. What’s more, PlayPal learns and remembers your goals, ensuring that every interaction is valuable.
Conclusion: Opportunities for Entrepreneurs in AI Infrastructure
SoftBank’s acquisition of Foxconn’s Ohio factory reveals how industrial repurposing can pave the way for business innovation. Entrepreneurs should view this transition as an example to:
- Adapt to emerging trends like AI infrastructure.
- Leverage partnerships to scale operations.
- Explore funding opportunities with tools like F/MS AI Grant Finder.
The startup ecosystem is evolving rapidly in 2025, and staying informed on developments like Stargate is crucial. With platforms like PlayPal and innovative funding tools, startups have all the resources necessary to succeed in this new era.
FAQ
1. Why did SoftBank acquire Foxconn’s Ohio factory?
SoftBank acquired Foxconn’s Ohio factory to repurpose it for AI server manufacturing as part of the Stargate AI Project, shifting the focus from electric vehicles (EVs) to AI infrastructure. Learn more about SoftBank’s acquisition at TechCrunch
2. What is the Stargate AI Project?
The Stargate AI Project, led by SoftBank in collaboration with OpenAI and Oracle, aims to build a vast AI infrastructure network, including data centers and server manufacturing facilities, across the U.S. Discover Stargate AI at Bloomberg News
3. How was the Ohio factory transitioned from EV to AI infrastructure?
SoftBank repurposed the existing advanced manufacturing systems in the factory to build AI servers, transforming it from its original vision of EV manufacturing. Learn more about the factory transition
4. What is the significance of the Ohio factory’s location?
The factory’s strategic location provides excellent access to talent and connectivity, making it ideal for expanding AI infrastructure across the U.S. Learn more about SoftBank's Ohio hub at CoinCentral
5. What challenges does the Stargate AI Project face?
The Stargate AI Project faces funding and regulatory challenges, including geopolitical trade issues that could impact its expansion plans. Explore the challenges in Bloomberg's coverage
6. Why did Foxconn sell the factory and exit the EV business in Ohio?
Foxconn struggled to secure major long-term EV manufacturing contracts, with multiple customers, including Lordstown Motors and Fisker Inc., going bankrupt. Learn more about Foxconn's exit on TechCrunch
7. What are the economic benefits of the Stargate endeavor?
The Stargate Project is expected to create hundreds of thousands of jobs and drive massive economic growth by building next-generation AI infrastructure. Learn more about Stargate’s economic impact
8. What can entrepreneurs learn from SoftBank's strategic pivot?
Entrepreneurs can learn lessons in adaptability, strategic collaboration, and the importance of investing in future-focused industries like AI. Discover strategies for startups inspired by SoftBank
9. How can startups obtain funding for similar AI-focused projects?
Startups looking to fund AI-based projects can use tools like F/MS AI Grant Finder, which provides personalized funding recommendations and grant application support. Explore F/MS AI Grant Finder
10. What other regions are being targeted for Stargate AI expansions?
In addition to Ohio, SoftBank has plans to establish AI infrastructure globally, including facilities like Stargate UAE in Abu Dhabi. Learn more about Stargate UAE
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch. The Fe/male Switch team is located in several countries, including the Netherlands and Malta.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 3,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
