The company's founder emphasised the importance of AI in reshaping the company and supporting its primary asset, which is UK-based chip designer Arm. Over the past year, SoftBank's investment and commitment spending has more than doubled to USD 8.9 billion according to the Financial Times, reflecting a strategy to aggressively pursue opportunities. The company intends to maintain or possibly exceed this level of investment for suitable large-scale deals.
SoftBank’s Chief Financial Officer stated that the company aims to continue its current investment pace, particularly focusing on AI companies. He also mentioned that maintaining a strong balance sheet allows for flexibility in seizing opportunities.
SoftBank has evolved from an internet broadband business into a regulated mobile network operator, acquiring companies such as Vodafone Japan and Sprint, and then into an investment-focused entity with support from Saudi Arabia and Abu Dhabi. The group has also benefited from a successful investment in Alibaba.
Company officials view AI as a crucial growth driver, prompting efforts to realign SoftBank and its Vision Funds to stay competitive. However, the company faces significant competition from major tech firms such as Microsoft, Amazon, and Google, which are also heavily investing in AI.
Despite setbacks with some large investments, such as the USD 14 billion loss on WeWork, SoftBank’s financial position has improved. Recently, S&P upgraded SoftBank's rating, citing improved asset quality. This financial strength enables the company to pursue large deals, but officials have stressed caution in managing the company's finances.
SoftBank recently led a USD 1 billion investment in UK self-driving car start-up Wayve, marking a significant AI-related deal. The company is also exploring investments in power generation and data centres to support AI development and benefit Arm. Company officials are expected to provide more details on their AI strategy at an upcoming shareholders' meeting in June 2024.
Within SoftBank, the Vision Funds have shifted focus from making new investments to exiting existing ones to generate returns. The Vision Funds are increasingly integrated into SoftBank’s broader operations, with AI investments being assessed for strategic value rather than solely for financial returns.
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