The mystery buyer of the former General Motors factory owned by Foxconn in Lordstown, Ohio, appears to be SoftBank, according to Bloomberg News. SoftBank plans to use the factory to produce AI servers as part of the Stargate data center project, a collaboration between the Japanese conglomerate, OpenAI, and Oracle.
This report follows Foxconn’s recent announcement that it sold the factory, along with its electric vehicle manufacturing equipment, to an entity called “Crescent Dune LLC,” which was established in Delaware in late July. Neither Foxconn nor SoftBank has responded to requests for comment.
The sale raises questions about the future of Monarch Tractor, a California-based startup specializing in electric and autonomous farm equipment. Monarch was Foxconn’s only remaining customer at the Ohio factory after the other three prospective clients went bankrupt. Monarch CEO Praveen Penmesta has not commented on the situation.
SoftBank, OpenAI, and Oracle unveiled the Stargate project shortly after Donald Trump’s inauguration. The initiative currently includes a large data center under construction in Texas, with plans to expand to other locations globally. However, Bloomberg reported in May that SoftBank faced funding challenges for the project, further complicated by Trump’s trade policies.
Foxconn acquired the factory in late 2021 from electric vehicle startup Lordstown Motors. Foxconn’s chairman, Young Liu, initially envisioned the site as North America’s leading electric vehicle manufacturing and R&D hub. The sale was finalized in 2022, but by 2023, Lordstown Motors had filed for bankruptcy. Other potential customers, including Fisker Inc. and Indi EV, also ceased operations.