FT: SoftBank's Masayoshi Son seeks up to $100 billion from Gulf investors for a new AI fund
SoftBank seeks $100bn from Gulf investors to expand AI bet
Context
If the FT report is right, one of AI's biggest backers wants a fund the size of the first Vision Fund to buy companies and run them with AI and robotics, adding Gulf money to the AI investment boom.
SoftBank is one of OpenAI's largest investors, and it said last week that it had completed its $30 billion investment in OpenAI's latest round, according to Reuters. Last month it raised $11.1 billion in what Reuters called the largest high yield corporate bond sale globally. Mubadala of the UAE and Saudi Arabia's Public Investment Fund backed SoftBank's first $100 billion Vision Fund in 2017.
Deep dive
The Financial Times reported early on October 9 that Masayoshi Son is seeking to raise up to $100 billion from Gulf investors. According to the FT, Son has held talks in recent weeks with senior figures, including in the United Arab Emirates, citing multiple people familiar with the matter.
The FT says the money would set up a fund that buys companies and then uses AI and other advanced technology to improve their operations. Roze, SoftBank's robotics and physical AI business, which Son hopes to take public, is expected to play a key role, according to the newspaper.
The FT describes the effort as the latest in a series of large AI bets by Son, including a $65 billion investment in OpenAI. It reports that the first Vision Fund has generated about $29 billion in cumulative investment gains as of the end of June, while Vision Fund 2, which holds the OpenAI stake, has generated $20.5 billion.
Reuters said it could not immediately verify the report and that SoftBank did not respond to a request for comment. The news spread quickly on X, where a one line summary by zerohedge passed half a million views.
What to expect next
Watch for confirmation from SoftBank or Gulf sovereign funds, and for details on the fund's size, structure and first targets. The FT report leaves open how much would actually be raised and on what terms.
Also watch Roze. The FT says Son hopes to list the robotics unit at a high valuation, and its role in the new fund could signal how SoftBank plans to turn AI and robotics into returns beyond its OpenAI stake.