In a significant pivot, a historic automotive manufacturing facility in Lordstown, Ohio, once a bustling hub for General Motors and later electric vehicle startup Lordstown Motors, is on the cusp of a remarkable transformation. This sprawling industrial complex is now set to become a vital nexus for artificial intelligence, thanks to a strategic acquisition by a prominent Japanese investment powerhouse. The transition from vehicle production to cutting-edge AI infrastructure underscores a broader trend of industrial adaptation, where traditional manufacturing sites are being repurposed to meet the demands of the digital age. This development not only highlights the growing need for robust AI computing capabilities but also signifies a new chapter for the Lordstown site, potentially revitalizing the local economy through an entirely new industry.
Ohio's Automotive Legacy Evolves into an AI Frontier
In a groundbreaking development that transpired in early August 2025, the extensive manufacturing facility located in Lordstown, Ohio, formerly operated by General Motors and subsequently by Lordstown Motors, found a new proprietor. A recent and authoritative report from Bloomberg unveiled the identity of the enigmatic buyer: SoftBank, a preeminent Japanese investment conglomerate renowned for its substantial interests within the technology sector. This multi-million dollar acquisition, encompassing the factory's expansive land, buildings, and critical manufacturing equipment, is strategically aligned with SoftBank's ambitious 'Stargate' initiative.
The 'Stargate' project, a monumental collaborative endeavor between SoftBank, OpenAI, and Oracle, aims to commit an staggering 500 billion dollars by 2029 towards the establishment of sophisticated infrastructure specifically designed to bolster artificial intelligence models, including the likes of ChatGPT. While a primary data center for this colossal undertaking is actively under construction in Texas, the participating entities have articulated a clear intent to establish similar facilities in various other states and potentially even across international borders. This strategic acquisition in Lordstown, Ohio, directly supports this expansive vision, positioning the former automotive plant as a crucial node in the burgeoning network of AI data centers.
Interestingly, earlier in the spring of 2025, Bloomberg had reported challenges faced by SoftBank in securing the necessary funding for the 'Stargate' project, compounded by existing tariffs and trade levies imposed by the Trump administration. Despite these financial hurdles, the undisclosed source indicated that while a comprehensive financial plan for 'Stargate' was still in development, SoftBank had already engaged in discussions with Foxconn regarding potential collaborations on the construction of AI data centers and related infrastructure throughout the United States. The recent sale of the Lordstown EV plant is understood to be an integral part of these overarching efforts by the Japanese investment firm to advance its AI ambitions.
Just days before the identity of the buyer was revealed, the Taiwanese electronics manufacturing behemoth Foxconn, widely recognized for producing iconic consumer electronics such as the Nintendo Switch and the Apple iPhone, finalized the sale of the former General Motors car factory in Lordstown, Ohio. The transaction, totaling $375 million, was conducted with a newly formed entity known as 'Crescent Dune LLC', a Delaware-based limited liability company established merely two weeks prior to the sale. Foxconn spokesperson Matt Dewine confirmed that 'Crescent Dune LLC' is an "existing business partner," indicating a pre-established relationship between the parties.
Filings with the Taiwan stock exchange further elucidated the details of the sale: approximately $88 million was allocated for the acquisition of the site itself, including the land and buildings, while a substantial $287 million covered the manufacturing equipment previously owned by Foxconn's electric vehicle subsidiaries. In a statement provided to Automotive News, Foxconn affirmed that the Lordstown site remains an "integral part of the company's footprint" in the United States, clarifying that the decision to sell was part of a strategic initiative to "expand into new business areas." Although Foxconn intends to maintain some operations at the Lordstown facility and remains committed to the automotive industry, a prior report from The Wall Street Journal had revealed Foxconn's plans to reconfigure the EV factory for the production of AI hardware and equipment. This aligns with Foxconn's existing AI server manufacturing facility in Houston and its established partnerships with tech giants like Apple and Nvidia in developing AI-related infrastructure across the U.S.
The Lordstown facility boasts a rich and storied history in American manufacturing. General Motors operated the plant from 1966 until 2019, producing a diverse range of vehicles, from full-size Chevy cars to compact models like the Vega, Monza, Cavalier, Cobalt, and Cruze. The plant reached its peak production in 2014, manufacturing 290,000 cars, and cumulatively produced nearly 16 million vehicles during its GM tenure. In 2019, Lordstown Motors acquired the facility with aspirations of manufacturing the Lordstown Endurance electric pickup truck. However, facing financial difficulties, the EV company eventually sold the facility to Foxconn in 2022. Despite Foxconn's efforts to assemble a limited number of electric pickups, Lordstown Motors ultimately filed for bankruptcy in June 2023. Various other automotive startups, including Fisker, had considered collaborations with Foxconn to produce electric vehicles at Lordstown, but these plans did not materialize. Presently, Foxconn continues to utilize the Lordstown plant for the assembly of electric tractors for Monarch, a California-based startup.
This remarkable transformation of the Lordstown plant from an automotive stronghold to a potential AI data center serves as a profound illustration of the dynamic shifts occurring within the global industrial landscape. From a journalistic perspective, it’s fascinating to observe how rapidly technological advancements can reshape economic priorities and physical infrastructure. While the shift from car manufacturing to AI data processing might seem disparate, it underscores the inherent adaptability of large industrial complexes and the pressing need for the foundational infrastructure to power the artificial intelligence revolution. It also highlights a strategic re-evaluation of how industrial assets can be best utilized in an increasingly digital world, paving the way for unexpected yet impactful alliances between seemingly unrelated sectors. This repurposing is a testament to innovation, demonstrating that even the most deeply rooted industrial legacies can evolve to embrace the future.