DHAKA: Japanese technology giant Softbank is investing $1bn (£806m) in US space start-up OneWeb.
Softbank founder Masayoshi Son said it was the “first step” in a pledge made to US President-elect Donald Trump about US investment.
OneWeb is working on satellites that will help bring faster internet to developing countries.
Softbank’s investment will give it a 40 percent stake in the Florida-based firm, making it the biggest shareholder.
The deal will create about 3,000 jobs, reports the BBC.
Earlier this month Son met Trump and said he would put $50bn into US businesses and create 50,000 jobs over the next four years,
Florida-based OneWeb, which is a direct rival to Elon Musk’s SpaceX, is now estimated to be worth around $2.5bn following its latest funding round. It also received another $200m from existing investors including Airbus, Virgin, India's Bharti and chipmaker Qualcomm.
“SoftBank has a long history of investing in disruptive, foundational technologies that promise to help us realize the future sooner,” Son said in a statement.
“OneWeb is a tremendously exciting company poised to transform internet access around the world. America has always been at the forefront of innovation and technological development and we are thrilled to be playing a part in continuing to drive that growth as we work to create a truly globally connected ecosystem."
Son is known to have an eye for potentially transformative industries and trends. He was an early investor in Alibaba and saw the potential in e-commerce before anyone else did.
He has also embarked on an aggressive spending spree aimed at expanding Softbank's footprint in the so-called Internet of Things, which will see billions of devices becoming interconnected.
Softbank acquired UK technology firm ARM Holdings in July for $32bn.
The Cambridge-based firm designs microchips used in many smartphones, including those of Apple and South Korea's Samsung.
It has previously bought Vodafone's Japanese operations and the US telecoms company Sprint. The $20bn deal was the biggest foreign acquisition by a Japanese firm at the time.
In October, Softbank also partnered with Saudi Arabia's sovereign wealth fund to launch a technology fund worth as much as $100bn.
BDST: 1545 HRS, DEC 20, 2016
AP/BD
