SoftBank, led by founder Masayoshi Son, is set to invest nearly $9 billion annually in artificial intelligence (AI) to support its crown jewel, UK-based chip designer Arm. The strategic move aims to reshape the company for future growth and maintain a competitive edge in the AI sector.
SoftBank’s AI Investment Strategy: Aiming for $9 Billion Annually
SoftBank, under the leadership of founder Masayoshi Son, is set to invest nearly $9 billion annually in artificial intelligence (AI). This strategic move aims to support the company’s crown jewel, UK-based chip designer Arm, which has seen significant valuation increases since going public last year.
Masayoshi Son has emphasized the need to reshape SoftBank to stay competitive in the AI sector, which he believes is crucial for future growth. SoftBank’s Chief Financial Officer, Yoshimitsu Goto, confirmed that the company plans to maintain, or even exceed, its current investment pace for the right mega-deal.
SoftBank’s transformation over the years has included significant investments, such as the purchase of Vodafone Japan and Sprint, as well as a profitable investment in Alibaba. Despite facing challenges, such as the $14 billion loss from WeWork’s bankruptcy, the firm’s balance sheet has strengthened. This improvement led to an upgraded rating from S&P to double B plus, reflecting better asset quality.
Recent developments include a $1 billion investment in the UK self-driving car startup Wayve, marking Europe’s largest AI deal to date. Discussions are also reportedly underway to acquire another UK chip designer, Graphcore.
The Vision Funds, integral to SoftBank’s strategy, have shifted focus from large-scale investments to exiting for returns. This shift includes forming the Platform Group to scout AI investment opportunities, primarily financed through SoftBank’s balance sheet rather than solely through Vision Funds.
Masayoshi Son is expected to provide further details on these plans at SoftBank’s annual shareholders’ meeting in June.
