In a bold move to revitalize its investment activities, SoftBank Group founder Masayoshi Son has declared that the world’s largest tech investment firm is set to make a comeback after a period of relative dormancy. Speaking at the conglomerate’s annual shareholders meeting, Son expressed his enthusiasm for the potential of artificial intelligence (AI) and revealed plans to shift the company’s focus towards startup investments once again.
Masayoshi Son is a Japanese billionaire technology entrepreneur, investor, and philanthropist. A 3rd generation “Zainichi Korean”, he naturalized as a Japanese citizen in 1990. Son believes that Chip design unit Arm is on the cusp of ‘explosive’ growth and plans on focusing on artificial intelligence developments.
Years of dormancy give rise to new opportunities
SoftBank’s recent retreat from the public eye, including Son’s absence from earnings calls, coincided with substantial losses incurred by its Vision Fund unit over five consecutive quarters. During this time, new investments were put on hold as Son concentrated on preparing for the listing of the company’s chip design unit, Arm.
However, this period of hibernation has provided SoftBank with ample cash reserves, allowing the company to reenter the investment landscape. Son emphasized that Arm is positioned for explosive growth, having doubled its team of engineers over the past few years. He confidently stated, “We will go on the counter-offensive soon,” envisioning a future where computers are thousands of times more intelligent than the collective wisdom of humanity.
Arm’s IPO potential sparks excitement
Son’s announcement comes amidst mounting anticipation surrounding Arm’s potential initial public offering (IPO). The chip design unit’s listing could raise up to $10 billion, according to reports, generating increased interest from investors. Encouraged by the growing buzz around generative AI and ongoing discussions with potential anchor investors, including Intel, Arm’s prospects are looking promising. Brokerages have consequently revised their SoftBank stock price targets, further contributing to the positive sentiment.
Following Son’s remarks, SoftBank’s shares experienced an initial surge of up to 4.1% before the shareholder’s meeting commenced. While the gains were partially reduced afterward, the stock has still witnessed quarterly growth of over 30%, on track to achieve its best performance in three years by the end of June.
Son’s eagerness to capitalize on AI’s immense possibilities
As an early advocate of AI investments, Son expressed his satisfaction at the growing public awareness regarding AI’s potential during a separate meeting with shareholders at SoftBank Corp, the company’s Japanese telecom unit. SoftBank’s substantial investments in hundreds of companies are expected to yield fruitful results in the near future, according to Son’s optimistic outlook.
With SoftBank’s renewed vigor and capital resources, the startup ecosystem can anticipate a resurgence of investments in the coming months. This development is particularly significant as even profitable firms face declining valuations due to rising interest rates, reduced liquidity, and cautious venture capital funds. Son’s eagerness to capitalize on AI’s immense possibilities suggests that SoftBank is preparing to play a vital role in shaping the future of technological advancement.
SoftBank Group’s founder, Masayoshi Son, has announced the company’s strategic shift towards an offensive investment approach, following a period of relative dormancy. Son’s excitement about the potential of AI and the imminent IPO of Arm, SoftBank’s chip design unit, has rekindled optimism within the company. As SoftBank prepares to make its comeback, the startup ecosystem awaits the positive impact of its investments, while Arm’s IPO potential raises expectations for a successful listing.
