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<keyword id="19944037" type="General" weightage="100" keywordseo="SoftBank" source="keywords" meta.keywordsubtype="org" meta.entityname="SoftBank" meta.hostid="261" meta.entityid="SoftBank">SoftBank</keyword>'s Vision Fund is set to make a significant leap into the <keyword id="19904566" type="General" weightage="20" keywordseo="artificial-intelligence" source="keywords">artificial intelligence</keyword> space by investing $500 million in <keyword id="19918823" type="General" weightage="20" keywordseo="OpenAI" source="keywords" meta.keywordsubtype="org" meta.entityname="OpenAI" meta.hostid="261" meta.entityid="OpenAI">OpenAI</keyword>, according to a Reuters report originally attributed to The Information. If this happens, it would be the first major investment from SoftBank in the AI company, led by <keyword id="19918827" type="General" weightage="20" keywordseo="Sam-Altman" source="keywords">Sam Altman</keyword>, and will be a part of OpenAI’s ongoing funding round. OpenAI, which became a household name after launching generative AI chatbot <keyword id="19918826" type="General" weightage="20" keywordseo="ChatGPT" source="keywords">ChatGPT</keyword>, has been at the centre of the AI boom. The company is currently raising $6.5 billion through convertible notes, a financial instrument that allows investors to convert their debt into equity at a later date. This funding round could push OpenAI’s valuation to an impressive $150 billion, though this is before the anticipated SoftBank infusion. However, this valuation is not without challenges. OpenAI is in the process of a corporate restructuring, which is crucial to attracting future investments. Currently, the company operates under a non-profit structure, with a cap on investor profits. But recent reports suggest that OpenAI is working to transition into a for-profit entity, a move that would remove this cap and offer more flexibility to investors. This restructuring is seen as a pivotal moment for the company’s future growth and valuation prospects. The Information also reports that OpenAI is considering granting CEO Sam Altman a 7% equity stake as part of its restructuring efforts to transition into a for-profit company. Interestingly, despite the buzz around this massive funding round, Apple has reportedly decided not to participate, according to earlier reports. Apple’s decision to step back leaves the field open for other major players, with SoftBank now seizing the opportunity. As SoftBank looks to make its first foray into OpenAI’s ecosystem, the investment signals the company’s confidence in the transformative potential of artificial intelligence. If OpenAI succeeds in restructuring, it could unlock a new wave of investment, further pushing the boundaries of AI innovation. (With Reuters inputs)

SoftBank could invest $500 million in OpenAI, new report says

<ul class="summary-list"><li>SoftBank reported a $7.7 billion quarterly profit on Tuesday after a loss last year.</li><li>Gains in its tech bets come as it prepares to invest further in AI and eyes future IPOs.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/masayoshi-son-softbank-gambling-man-lionel-barber-technology-2024-9">SoftBank's</a> bets on AI and timely public listings have helped it post its biggest profits for two years, a year after posting losses in the billions.The Japanese technology conglomerate swung to a 1.18 trillion yen ($7.7 billion) profit on Tuesday. For the same period last year it reported a 931.1 billion yen ($6 billion) loss. Masayoshi Son's company — once associated with its notorious <a target="_blank" class="" href="https://www.businessinsider.com/weworks-nightmare-ipo">failed bet on WeWork</a> and other lossmaking startups — pointed to gains made across its Vision Funds, its huge investment vehicles with both public and private holdings in tech companies.Gains for its Vision Fund 1, a $98.6 billion investment vehicle launched in 2016 with backing from Abu Dhabi and Saudi Arabia's sovereign wealth funds, totaled $3 billion in the second quarter. It reported strong performances in listed companies in its portfolio, such as Didi Chuxing, a Chinese version of Uber.Navneet Govil, chief financial officer at <a target="_blank" class="" href="https://www.businessinsider.com/inside-softbank-vision-funds-awful-year-former-employees-rival-vcs-2022-12">SoftBank's Vision Funds</a>, told Business Insider that "macro tailwinds" such as US interest rate cuts and stimulus measures in China helped its public portfolio.Vision Fund 2, which made a $500 million investment in OpenAI last month, made a $900 million investment gain in the quarter due to growth in privately held portfolio companies such as Revolut.The UK-based fintech giant, which has won banking licenses in the UK and Mexico in recent months, is now valued at $45 billion. SoftBank invested in Revolt in 2021, when it was worth $33 billion.<h2 id="18d37cf2-1aaf-4020-8453-aa9f8c4b8cca">Tailwinds for IPO activity </h2>Listings in India of companies like Ola Electric have also provided a boost for SoftBank.Govil said SoftBank saw opportunities to realize future gains from IPOs after a period of stagnancy, adding that "rate cuts in the US and elsewhere are constructive developments because they effectively lower the cost of capital and provide a good tailwind for IPO activity."He continued: "We have a late-stage portfolio that's now valued at about $34 billion and some really high-quality companies which are leaders in their respected industries, from ByteDance to PayPay to Fanatics. They will all list when the time is right."Despite the investment gain, Vision Fund 2 has lost an overall total of $21 billion since its inception. The fund has been forced to grapple with a tougher interest rate environment in recent years and a slow <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/recent-upcoming-ipo-processes-stock-market-impact-outlook-reddit-astera-2024-4">IPO market.</a>The results come as SoftBank gears up for a huge investment spree in AI to realize Son's ambitious vision. Last month at SoftBank World — its annual customer event — the founder and CEO said he <a target="_blank" class="" href="https://group.softbank/en/event/earnings_2024q2?utm_source=pressmail&amp;utm_medium=email&amp;utm_campaign=press1112#webcast02">hoped to achieve "artificial superintelligence"</a> within a decade.The 67-year-old Son, who made his original fortune with a timely bet on Alibaba, is hoping to create outsize returns in the generative AI era. He has already bet on buzzy companies such as Perplexity and chip firms trying to rival Nvidia, such as Graphcore and Arm.

SoftBank is betting on AI and an IPO revival after swinging to a $7.7 billion profit

<ul class="summary-list"><li>SoftBank is the first to buy Nvidia's Blackwell chips, the companies said Wednesday.</li><li>The chips will power a supercomputer in Japan.</li></ul>SoftBank Group is the first customer to use Nvidia's <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-ceo-jensen-huang-unveils-next-generation-ai-chip-blackwell-2024-3">Blackwell chips</a>, which will be used to develop an artificial intelligence supercomputer in Japan.The companies plan to build the system — which they call Japan's most powerful supercomputer — in early 2025. SoftBank said it will use the Blackwell-powered computer for generative AI development and as a resource for research institutions and companies across the country."Together we're going to build Japan's largest AI factory," Nvidia's <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-jensen-huang-chipmaker-cofounder-ceo-wealth-net-worth-ai-2023-5">CEO Jensen Huang </a>said at the company's AI summit in Tokyo on Wednesday.The two companies also announced deals to provide AI services on 5G networks and to create an AI marketplace for local compute.The announcement highlights Japan's efforts to reclaim its place as a tech and innovation hub amid <a target="_blank" class="" href="https://asia.nikkei.com/Opinion/Japan-s-cautious-approach-to-AI-may-pay-dividends">lagging AI adoption</a>. AI is an especially big opportunity for Japan as it struggles with an aging society, <a target="_blank" class="" href="https://www.businessinsider.com/japan-struggles-four-day-workweek-culture-overwork-panasonic-worker-shortage-2024-9">labor shortages, and overwork</a>. In a statement, Nvidia said the supercomputer will help accelerate Japan's plans to adopt AI in telecommunications, robotics, and <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-bring-ai-robots-to-hospital-2024-10">healthcare</a>.The partnership comes amid <a target="_blank" class="" href="https://www.businessinsider.com/aws-negotiating-huge-cloud-deal-supply-ibm-with-nvidia-gpus-2024-11">skyrocketing demand</a> for Nvidia's chips as companies and countries scramble to secure supplies to improve their AI capabilities. As one of the few players in this space, Nvidia has a stronghold on anyone looking to accelerate their business or economy using AI models.In August, Nvidia sparked worries that Blackwell chips would be delayed by two to three months, pushing shipments to the first quarter of 2025 instead of later this year. The delay would affect customers including <a target="_blank" rel="" class="" href="https://www.businessinsider.com/nvidia-big-tech-earnings-week-early-winner-ai-microsoft-2024-7">Meta, Microsoft, Google</a>, and smaller cloud firms. On an August earnings call, Huang promised that the company would ship out billions of dollars worth of Blackwell GPUs by the fourth quarter.With the world's biggest companies on Nvidia's customer list, SoftBank's procurement of the first Blackwell platform reflects Huang's relationship with the Japanese investor and its billionaire founder, <a target="_blank" class="" href="https://www.businessinsider.com/masayoshi-son-softbank-gambling-man-lionel-barber-technology-2024-9">Masayoshi Son.</a>Son was an early investor in Jack Ma's Alibaba and acquired European chipmaker Arm for $32 billion in 2016. He's going <a target="_blank" class="" href="https://www.businessinsider.com/softbank-masayoshi-son-jack-ma-bet-ai-2024-2">all-in on AI</a>, with investments across the world — including <a target="_blank" class="" href="https://www.businessinsider.com/softbank-results-profit-masayoshi-son-ai-bets-ipo-vision-fund-2024-11">in OpenAI</a>.During the summit, Huang laughed with and hugged Son. The Nvidia cofounder reminded audiences that SoftBank was once his <a target="_blank" class="" href="https://www.businessinsider.com/nvidia-stock-price-softbank-reportedly-plans-to-sell-its-stake-in-the-chipmaker-2018-12">largest shareholder</a> and that Nvidia would "not be here today" if not for Japan and its first AI supercomputer.Last month, Nvidia hosted a similar<a target="_blank" class="" href="https://www.businessinsider.com/jensen-huang-nvidia-ai-jobs-replace-summit-mumbai-2024-10"> AI summit in Mumbai </a>where Huang met with Indian conglomerate leader Mukesh Ambani to discuss the "extraordinary opportunity" AI poses for India.

SoftBank is Nvidia's first Blackwell chips customer. Here's what they're going to be used for.

<ul class="summary-list"><li>SoftBank looks set to get a slice of OpenAI.</li><li>Reports suggest the Japanese conglomerate will invest $500 million into the ChatGPT maker.</li></ul>If everything goes to plan, OpenAI will end the week as a $150 billion giant at the center of the AI industry. It will also end the week with another reputation: a new piece in the grand puzzle being solved by <a target="_blank" class="" href="https://www.businessinsider.com/masayoshi-son-softbank-gambling-man-lionel-barber-technology-2024-9">Masayoshi Son.</a>The billionaire founder of Japanese conglomerate SoftBank looks set to add Sam Altman's startup to his sprawling portfolio following reports that his company will <a target="_blank" href="https://affiliate.insider.com?h=6174e992fbcba77742faa597fc56a9d63cf9c5a128b9fc27f6eee13e7a42ce5b&amp;postID=66fd5577e5b540830041020e&amp;postSlug=openai-softbank-investment-ai-vision-2024-10&amp;site=bi&amp;u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fsoftbank-to-invest-500-million-in-openai%3Foffer%3Drtsu-engagement-24%26utm_campaign%3DRTSU%253A%2BSoftBank%2Bto%2BIn%26utm_content%3D5445%26utm_medium%3Demail%26utm_source%3Dcio%26utm_term%3D3703">make a massive $500 million bet</a> on the ChatGPT maker.The funding, part of a $6.5 billion investment round, which Bloomberg reported on Wednesday <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-10-02/openai-has-closed-new-funding-round-raising-over-6-5-billion">had closed</a>, will cap a new era for Sam Altman's company. It follows a tumultuous few months in which a string of <a target="_blank" class="" href="https://www.businessinsider.com/openai-execs-mira-murati-leaving-restructuring-for-profit-sam-altman-2024-9">high-profile departures</a> has brought its status as Silicon Valley's hottest AI startup into question.But for its new expected backer from Tokyo, the funding is about something much bigger.Son, a technology evangelist who has made and lost billions of dollars since founding SoftBank as a software distribution business in 1981, talked up the advancement of AI as his life's mission long before ChatGPT arrived in late 2022. He doubled down on this sentiment at his company's annual meeting in June, telling shareholders that <a target="_blank" href="https://group.softbank/en/ir/investors/shareholders/2024">"this is what I was born to do."</a>So, while a $500 million bet will give SoftBank a stake in one of Silicon Valley's buzziest companies, it is worth considering how it fits into the AI picture of tech's widest-eyed visionary.<h2 id="cd880916-0653-4073-a89e-09b9bd7bb3d3">Masayoshi Son's AI vision is ambitious</h2><div type="image" title="OpenAI CEO Sam Altman." height="2392" width="3600" msid="113883429" hostid="261" sizebytes="163328"></div>To understand<a target="_blank" class="" href="https://www.businessinsider.com/softbank-masayoshi-son-jack-ma-bet-ai-2024-2"> Son's grand AI ambitions</a>, it's worth first zooming out to see how SoftBank currently maps out AI investment opportunities.In a presentation to investors this year, seen by Business Insider, SoftBank divided its interests in AI into three distinct layers. First, there's the application layer involving "the consumer 'super apps' used every day," like <a target="_blank" class="" href="https://www.businessinsider.com/everything-you-need-to-know-about-chat-gpt-2023-1">ChatGPT</a>. Then, there's the infrastructure layer, which is all about tools to gather and analyze data. Finally, there's a hardware layer, which includes chips, data centers, and robotics.In OpenAI, SoftBank looks like it'll finally have a major investment in a foundation model AI company — a company building the large language models sitting behind consumer-facing apps like ChatGPT and <a target="_blank" class="" href="https://www.businessinsider.com/pharma-cio-cancelled-microsoft-copilot-ai-tool-2024-7">Microsoft Copilot</a>. Think of it as floating somewhere between layers one and two.SoftBank has made a previous effort to get ahead with investments in the first two layers through its first <a target="_blank" class="" href="https://www.businessinsider.com/inside-softbank-vision-funds-awful-year-former-employees-rival-vcs-2022-12">Vision Fund, a $100 billion investment vehicle launched in 2016</a> with backing from Middle Eastern sovereign wealth funds, and its second Vision Fund launched in 2019.The second fund, set to back OpenAI, invested in <a target="_blank" class="" href="https://www.businessinsider.com/perplexity-ai-forbes-wired-explained-2024-6">AI search engine startup Perplexity</a> at a $3 billion valuation in June. Judging by Son's previous comments, the hundreds of companies backed by the funds will eventually find a way to complement one another. That hasn't gone completely to plan.Performance across the funds has wavered. As of June, Vision Fund 1's gains were $21.7 billion, while Vision Fund 2 losses totaled $22.9 billion. Most of the investments also came before the generative AI boom that started after ChatGPT's launch, meaning billions of dollars of investment has gone to companies not exactly tailored to the tech of the moment.So it's become clear that Son's focus has fallen on the other part of his AI investment stack.In September 2023, Son took a big step forward in the hardware layer by successfully relisting Arm. The chip designer, which SoftBank bought for $32 billion in 2016, has positioned itself as a key player in the AI space, helping it reach a market capitalization of over $142 billion.<div type="image" title="Arm Holdings CEO Rene Haas" height="683" width="1024" msid="113883430" hostid="261" sizebytes="46262"></div>It explains in part why, in February, a report emerged suggesting Son had been busy courting investors in the Middle East to raise up to $100 billion for a venture that would help him go even bigger on chips.<a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-06-21/softbank-s-son-aims-to-create-super-ai-in-new-investment-drive">According to Bloomberg</a>, the SoftBank founder has codenamed the secretive project Izanagi — the deity of creation in Japanese mythology. He reportedly picked that name, in part, because it contains the initials for artificial general intelligence, or AGI, a form of AI that could rival human intelligence or even surpass it.What such a chip venture would look like is unclear. Son could look to compete on chip design by building a venture to rival Nvidia, the $2.9 trillion chip giant that his company lost huge gains on after dumping its near 5% stake back in 2019. The venture could also support plans for Arm, which SoftBank retains a 90% stake in, to get into its own AI-specialized chip venture in 2025, per <a target="_blank" class="" href="https://asia.nikkei.com/Business/Technology/SoftBank-s-Arm-plans-to-launch-AI-chips-in-2025">Nikkei</a>.In July, the company acquired <a target="_blank" class="" href="https://www.businessinsider.com/graphcore-posts-bigger-losses-2022-and-needs-cash-2023-10">Nvidia rival Graphcore</a> in a deal that the startup's CEO Nigel Toon said would make it "part of the delivery behind a very grand vision."Alternatively, he could be looking at getting into the manufacturing and data center arena. A report from <a target="_blank" class="" href="https://www.wsj.com/tech/ai/sam-altman-seeks-trillions-of-dollars-to-reshape-business-of-chips-and-ai-89ab3db0">The Wall Street Journal in February</a> suggested OpenAI's Altman had met with Son and others to discuss ambitious plans to build new chip manufacturing plants, data centers, and more to support AI's advancement.Of course, like OpenAI, Son's ultimate ambition in AI is to realize <a target="_blank" class="" href="https://www.businessinsider.com/artificial-general-intelligence-development-andrew-ng-openai-microsoft-meta-google-2024-9">AGI</a>.In a new book on Son, former Financial Times editor and author Lionel Barber recalls a two-hour conversation he had with the SoftBank founder in late 2023 at the company's Tokyo headquarters. According to Barber, Son said he'd like to be remembered as "one of the foundation stones of AGI.""I may not be the full story of AGI, but one of the foundation stones of AGI," Son is reported to have said. "AGI is the only thing I care about."But while OpenAI races to build models that might <a target="_blank" class="" href="https://www.businessinsider.com/openai-o1-ai-model-agi-2024-9">inch humanity closer to AGI</a>, it's clear that Son wants to get his hands on all the pieces needed to help it achieve that goal.

OpenAI is just one piece of the puzzle in SoftBank's grand vision for AI

<ul class="summary-list"><li>The CEO of Softbank says Nvidia stock is undervalued despite its huge valuation.</li><li>Maysoshi Son predicts AI spending will boost Nvidia's chip business significantly over the next decade.</li></ul>Even after <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/nvda-stock">Nvidia's</a> ascent to the second-largest company in the world, Softbank CEO Masayoshi Son says he thinks the stock is still "undervalued."Son said <a target="_blank" class="" href="https://www.youtube.com/watch?v=Zx7HLytya-w">in an interview</a> on Monday that the ongoing spending trends in artificial intelligence will only accelerate in the years ahead, benefiting Nvidia and its GPU chip business, which has been the driving force behind most AI advancements."I think Nvidia is undervalued because the future is much bigger," Son said at the Future Investment Initiative conference.Son's bullish view on AI stems from his belief that artificial "superintelligence" will be achieved by 2035.Whereas artificial general intelligence is broadly viewed as an AI system that is as smart as a human, Son defined artificial superintelligence as an AI system that is 10,000 times more powerful than the human brain.Son said that to achieve that level of AI, it will require upwards of 200 million GPU chips and $9 trillion in total capex spending by companies. According to Son, that could be a bargain when considering the immense profits that could be generated from a potential artificial superintelligence."I say it's still very reasonable capex. $9 trillion is not too big, maybe too small," Son said.The famed investor calculated that if artificial superintelligence replaces just 5% of GDP in 10 years, it has the potential to deliver as much as $4 trillion in profits annually.Softbank has sharpened its focus on investing in AI companies, recently contributing $500 million to OpenAI's funding round.The Japan-based investment company also owns about 90% of <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/arm-stock">Arm Holdings</a>, which is planning to launch its own AI chips next year.Son's bullishness on AI and Nvidia means he also has some regrets. Softbank previously owned a 4.9% stake in Nvidia, but sold it in 2019 for about $4 billion. That stake would be worth more than $160 billion today."I had to tearfully sell the shares," Son said earlier this year, calling Nvidia "the fish that got away."

Nvidia stock is undervalued because AI companies need to spend another $9 trillion to achieve superintelligence, Softbank CEO says

<ul class="summary-list"><li>Saudi Arabia has invested billions of dollars into tech overseas in recent years.</li><li>The kingdom is now looking for overseas tech companies to invest in it, according to Bloomberg. </li></ul>In his ascendance to power, <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-crown-prince-mohammed-bin-salman-mbs-2023-10">Mohammed bin Salman</a> spent years investing Saudi Arabia's oil money in the global tech sector. The crown prince's kingdom appears to be ready for some of that favor to be returned.Rather than prioritizing investments in overseas tech companies, Saudi Arabia is looking to them to bring investment and resources to the Middle East as it seeks to capitalize on the AI boom and become a force of its own in the rapidly growing sector.The latest signs of this shift came on Wednesday after <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-11-06/saudis-plan-100-billion-ai-powerhouse-to-rival-uae-s-tech-hub">Bloomberg reported</a> that Saudi Arabia had plans for an up to $100 billion AI project that aims to not only prioritize the local tech industry but also encourage large tech companies to "put resources in the country.""Project Transcendence," as it is known, aims to make Saudi Arabia a place with all the components needed to advance AI: data centers housing the GPUs that train and run AI models, well-resourced startups at the cutting edge of innovation, and a globally sourced talent pool. According to the Bloomberg report, it also aims to build a "national champion" in AI. The crown prince, known as MBS, <a target="_blank" class="" href="https://ai.sa/">initiated a national AI strategy in 2020,</a> well before the current boom. But several factors have emerged since then for his nation to think hard about what it can do to accelerate the development of a resilient AI industry at home — and who it can get some help from.<div type="image" title="MBS" height="3043" width="4300" msid="115061833" hostid="261" sizebytes="382254"></div>One reason is that there has been an investment step-up in AI since the <a target="_blank" class="" href="https://www.businessinsider.com/everything-you-need-to-know-about-chat-gpt-2023-1">launch of ChatGPT</a> in late 2022, raising the stakes for Saudi Arabia as it battles neighboring rivals like the UAE for regional supremacy. Emirati state Abu Dhabi, for instance, is home to G42, a domestic company with an advanced <a target="_blank" href="https://www.g42.ai/resources/news/meet-jais-worlds-most-advanced-arabic-llm-open-sourced-g42s-inception">Arabic large language model</a>. It has also attracted $1.5 billion of investment from Microsoft. Bloomberg's report said Saudi Arabia planned to build its own version of G42.Another reason is weakening oil demand, a resource that has made the kingdom the central economic force of the Middle East for the better part of a century.An <a target="_blank" href="https://www.imf.org/en/Publications/CR/Issues/2024/09/03/Saudi-Arabia-2024-Article-IV-Consultation-Press-Release-Staff-Report-and-Informational-Annex-554530">IMF report in September</a> highlighted the ongoing decline in the country's oil revenue as the calendar speeds through to 2030; a decade-high of 857 billion riyals in 2022 ($228 billion) is projected to fall to 778 billion riyals ($207.1 billion) by 2029. Signs of weakening demand showed themselves this week, too, as state-owned oil giant <a target="_blank" href="https://www.aramco.com/-/media/publications/corporate-reports/reports-and-presentations/2024/q3/saudi-aramco-q3-2024-interim-report-english.pdf">Saudi Aramco reported a 15.3% year-on-year decrease</a> in third-quarter net income from $32.6 billion to $27.6 billion.Diversification away from oil has been a front-and-center issue for the kingdom's leaders for some time. It is a central focus of the <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-vision-2030-projects-trillion-value-neom-2024-9">grand Vision 2030 project MBS launched in 2016</a>, which includes mega-infrastructure projects like Neom. It is also a top priority for decision-makers at the Public Investment Fund, Saudi Arabia's giant sovereign wealth fund.The fund — chaired by MBS — has served as a crucial diversification tool for Saudi Arabia, <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-public-investment-fund-global-investment-spree-2024-8">leading an investment charge into top tech names</a> like Uber and SoftBank's first Vision Fund, a venture capital vehicle that bet on over 90 companies with $45 billion from the Saudis. The kingdom doesn't seem to want to keep up the pace of overseas spending it has previously had, however.Last month, PIF governor Yasir Al-Rumayyan told attendees of the Future Investment Initiative in Riyadh that the fund was preparing to allocate just 18 to 20% of its capital to overseas opportunities, <a target="_blank" href="https://www.ft.com/content/5004fbc6-23e2-4b9f-9885-14e1ea724ce2">the Financial Times reported</a>. That's a notable drop from the 30% allocated at the start of the decade.Overseas investment in AI looks set to continue, though. In March, The New York Times reported that the PIF was in early talks with Silicon Valley venture capital firm Andreessen Horowitz for a <a target="_blank" class="" href="https://www.nytimes.com/2024/03/19/business/saudi-arabia-investment-artificial-intelligence.html">$40 billion AI fund.</a> Should that materialize, it would be a significant force in the global AI investment space. <div type="image" title="Yasir al-Rumayyan" height="852" width="1093" msid="115061832" hostid="261" sizebytes="47602"></div>It remains to be seen how Project Transcendence might play out, but it could lead to Saudi Arabia announcing new developments, companies, and projects alongside key names from beyond its borders to bolster its AI activity at home.There are already examples of the country turning to overseas tech companies. California-based AI company Groq, for instance, <a target="_blank" href="https://groq.com/unleashing-the-power-of-fast-ai-inference-groq-and-aramco-digital-partner-to-establish-world-leading-data-center/">unveiled a partnership</a> with an arm of Saudi Aramco in September that will oversee the development of an AI data center in the country. In October, Google Cloud and the PIF announced a partnership to develop an AI hub in the kingdom that, if approved, would see the two conduct joint research on Arabic language models and train "millions" of students and professionals.Saudi Arabia will want others to work with it, too, as it gets serious about becoming the Middle East's main stage for AI.

Saudi Arabia spent years investing in global tech firms. Its domestic AI push hopes they'll return the favor.

<ul class="summary-list"><li>SoftBank CEO Masayoshi Son's bet on AI seems to be paying off.</li><li>The Japanese conglomerate posted a $1.5 billion profit in its latest quarter.</li></ul><a target="_blank" href="https://www.businessinsider.com/softbank-ceo-masayoshi-son-crisis-tears-for-days-ai-2023-6">Masayoshi Son</a> once branded those dismissive of artificial intelligence as <a target="_blank" href="https://www.businessinsider.com/softbank-ceo-masayoshi-son-on-ai-doubters-being-left-behind-2023-10">a bunch of "goldfish."</a> Stuck in a bowl, they'd watch as the world around them finds new freedoms thanks to the technology.It's a bold view; but it's one that's starting to look like reality for the Japanese billionaire.<a target="_blank" href="https://www.businessinsider.com/softbank-masayoshi-son-ai-investor-presentation-2023-6">SoftBank</a>, the Tokyo conglomerate Son founded during Japan's boom years in the early 1980s, signaled that its all-in bet on AI was starting to pay off after posting its latest earnings on Monday.Despite an annual net loss of about $1.46 billion, the company posted a profit of about $1.48 billion for the first three months of 2024, capitalizing on profit momentum generated in the previous quarter.A key driver of SoftBank's gains over successive quarters has come from its stake in Arm Holdings.The UK chip firm, which SoftBank acquired in 2016 for $32 billion, has seen its stock price <a target="_blank" href="https://www.businessinsider.com/arm-ipo-ai-boom-chipmaker-softbank-2023-9">soar</a> since its September IPO as investors buy in to its fresh focus on AI.Arm, whose chip design is used by companies such as <a target="_blank" href="https://www.businessinsider.com/apple-siri-generative-ai-improvements-iphone-report-2024-5">Apple</a>, is looking to deploy its tech with AI companies, particularly those that service the highly intensive computing needs of generative-AI operators.<div type="image" title="Arm Holdings CEO Rene Haas" height="3458" width="5186" msid="111691665" hostid="261" sizebytes="387960"></div>SoftBank has benefited from this because it has a 90% stake in Arm, which has doubled in value to over $110 billion since the listing."Arm is central to our AI shift," Yoshimitsu Goto, SoftBank's executive corporate officer of finance, said on Monday. Soft Bank's net-asset value jumped 45% from its last quarter to $178.3 billion — driven by Arm's soaring share price.For Son, the profits could offer reassurance that he's on the right track with AI after years of hit-and-miss investments in other technologies through startup betting.Arguably the biggest investment flop for Son came from his <a target="_blank" href="https://www.businessinsider.com/softbanks-losses-on-wework-total-15-billion-2023-11">backing of WeWork</a>, the real-estate startup that filed for bankruptcy in November after once being valued at $47 billion.SoftBank has also had mixed success with a duo of venture-capital funds run out of London called <a target="_blank" href="https://www.businessinsider.com/inside-softbank-vision-funds-awful-year-former-employees-rival-vcs-2022-12">Vision Funds</a>, which have sprayed cash at startups globally since 2017. Some of the funds' bets, such as those on pizza-robot and dog-walking startups, have since imploded.Son's critics have questioned whether the billionaire could ever replicate the success he enjoyed from a $20 million investment in Alibaba in 1999 that's <a target="_blank" href="https://www.businessinsider.com/softbank-masayoshi-son-jack-ma-bet-ai-2024-2">made him $72 billion</a>.But as the appetite for Arm's AI activities shows, SoftBank has room to grow in the face of this latest boom. Son seems aware of this, with the company selling down several Vision Fund investments in recent months to plow fresh cash into AI opportunities.There are still risks, however, as AI euphoria since ChatGPT's introduction in November 2022 has sent the stocks of <a target="_blank" href="https://www.businessinsider.com/nvidia-impact-q1-earnings-season-ai-nvda-stock-price-capex-2024-5">companies like Nvidia</a> to dizzying heights, leaving investors to wonder if a downturn might be around the corner.With about $40 billion in cash on hand at the end of March, Son should be ready to step up his search for AI's next big thing. If he's able to make the right bets, AI could pay off handsomely for him in the long term.

Looks like Masayoshi Son's plan to go all in on AI is starting to pay off for SoftBank

<ul><li>Eyewear unicorn <keyword id="1518229" type="General" weightage="100" keywordseo="lenskart" source="Orion">Lenskart</keyword> has signed a definitive agreement with <keyword id="126284" type="General" weightage="80" keywordseo="abu-dhabi-investment-authority" source="Orion">Abu Dhabi Investment Authority</keyword> (ADIA).</li><li>Abu Dhabi Investment Authority invests $500 mn.</li></ul><keyword id="2552077" type="General" weightage="50" keywordseo="omnichannel" source="Orion">Omnichannel</keyword> eyewear unicorn Lenskart has signed a definitive agreement with Abu Dhabi Investment Authority (ADIA) to raise $500 million from the authority. The investment is an extension to last year's funding round, helping Lenskart maintain its $4.5 billion valuation. The company said that the capital will be deployed to deepen its presence in Asia and the Middle East. ADIA's investment includes some secondary purchase of shares from some early backers of Lenskart. The eyewear company has so far raised $1.5 billion in primary and secondary rounds, according to reports. Founded in 2010, Lenskart ships over 10 million pairs of eyewear every year and has over 20 million app downloads, 300 home eye test representatives as well as over 1,100 stores across India, Singapore, and Dubai, the company said last year. Lenskart is backed by <keyword id="4675626" type="General" weightage="50" keywordseo="falcon-edge-capital" source="Orion">Falcon Edge Capital</keyword>, <keyword id="163404" type="General" weightage="50" keywordseo="softbank" source="Orion">SoftBank</keyword>, KKR, Temasek, Premji Invest and Kedaara Capital, among others. In June last year, the eyewear unicorn took a majority stake in Japanese eyewear brand Owndays in a deal that was reportedly around $400 million. This took the merged firm to reach 13 markets in Asia including India, Singapore, Thailand, Taiwan, Philippines, Indonesia, Malaysia and Japan. The company said it will continue its rapid expansion in India and South East Asia to serve the mass to mid-premium segments. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/innovative-ai-powered-applications-and-websites-that-are-revolutionizing-the-way-we-live-and-work/articleshow/98607475.cms">Innovative AI-powered applications and websites that are revolutionizing the way we live and work</a> <a href="https://www.businessinsider.in/tech/news/apples-airpods-to-offer-health-tracking-features-in-future-releases/articleshow/98624577.cms">Apple's AirPods to offer health tracking features in future releases</a>

Abu Dhabi Investment Authority invests $500 mn in eyewear unicorn Lenskart

<ul class="summary-list"><li>Softbank is considering investing in ChatGPT-maker OpenAI, according to a report in the Financial Times.</li><li>Boss Masayoshi Son has been very enthusiastic about the chatbot, telling investors he uses it daily.</li></ul>Like <a target="_blank" href="https://www.businessinsider.com/chatgpt-usage-falling-students-summer-break-bad-sign-openai-microsoft-2023-7">students</a> and <a target="_blank" href="https://www.businessinsider.com/chatgpt-secret-productivity-work-ai-technology-ban-employees-coworkers-job-2023-8">workers</a>, Softbank boss Masayoshi Son can't stop using ChatGPT, and now, he could be investing in it.Softbank is considering investing in OpenAI, with the <a target="_blank" href="https://www-ft-com.ezp.lib.cam.ac.uk/content/61d5b168-1e5e-4837-b830-1e6dd4d6f276">Financial Times reporting</a> that the AI startup is one of a number of options being looked at by the Japanese telecoms giant. The potential investment comes after boss Son told Softbank shareholders he was "chatting with ChatGPT everyday," in <a target="_blank" href="https://www.reuters.com/technology/softbanks-son-says-he-is-heavy-user-chatgpt-2023-06-20/">comments reported by Reuters</a>.The Softbank founder claimed that his late-night conversations with the chatbot inspired him to begin aggressively investing in tech stocks again. One long brainstorming session ended with ChatGPT <a target="_blank" href="https://www.wsj.com/articles/softbanks-masayoshi-son-says-hes-focusing-on-ai-inventions-621089ac">praising his ideas as "feasible and wonderful"</a>, he said in comments reported by the Wall Street Journal.Son has also <a target="_blank" href="https://www.businessinsider.com/softbank-chatgpt-billionaire-ceo-masayoshi-son-sam-altman-2023-6">met with OpenAI boss Sam Altman</a> in recent months, and told Softbank investors in June that he speaks to the AI startup boss "almost everyday."The company's $100bn Vision Fund, which was founded in 2017, has become famous for targeting buzzy high-growth companies, and for its eccentric founder, with Son reportedly <a target="_blank" href="https://www.businessinsider.com/softbank-ceo-masayoshi-son-compares-himself-to-misunderstood-jesus-report-2020-5">comparing himself to Jesus and Yoda</a> in one 2020 investor call.The potential investment in AI comes after a difficult few years for Softbank's giant investment arm.The Vision Fund has cut back on spending and <a target="_blank" href="https://www.businessinsider.com/softbank-ceo-likened-to-jesus-suffers-32-billion-fund-loss-2023-5">posted a record $32 billion loss earlier this year</a> after several high-profile misfires —including investments in the likes of WeWork and FTX — with the company writing its $100 million stake in the latter down to zero after the crypto exchange collapsed into acrimonious bankruptcy.Despite this, Son has signaled a willingness to go all-in on AI, telling investors in June that the firm was ready to go back into "offense mode."This offensive will likely be enabled by the massive public launch of <a target="_blank" href="https://markets.businessinsider.com/news/stocks/arm-ipo-stock-price-tech-stocks-trading-debut-ai-chips-2023-9">Softbank's British chipmaker ARM</a>, which secured a $54.5 billion valuation in an initial public offering on Thursday, boosting the company's investment warchest.OpenAI and Softbank did not immediately respond to requests for comment from Insider, made outside regular US working hours.

Softbank is planning to invest in OpenAI, report says, after Masayoshi Son said he uses ChatGPT every day

Supam Maheshwari, cofounder and CEO of mother and child care e-commerce platform <keyword id="19939174" type="General" weightage="20" keywordseo="FirstCry" source="keywords" meta.keywordsubtype="org" meta.entityname="FirstCry" meta.hostid="153" meta.entityid="FirstCry">FirstCry</keyword> has reportedly offloaded 6.2 million shares prior to filing for the company's initial public offer (<keyword id="19905471" type="TOPIC" weightage="20" keywordseo="IPO" source="TOPIC" meta.keywordsubtype="equity,investopedia" meta.msid="19357203" meta.seopath="i/ipo" meta.entityname="IPO" meta.hostid="153" meta.entityid="ipo">IPO</keyword>). According to a MoneyControl report, Maheshwari's offloaded shareholding would be over Rs 300 crore. <keyword id="1615917" type="General" weightage="20" keywordseo="firstcry" source="Orion">FirstCry</keyword> CEO has also listed himself as a selling shareholder in the public issue, according to the company's Draft Red-Herring Prospectus (<keyword id="131606" type="General" weightage="20" keywordseo="drhp" source="Orion">DRHP</keyword>). He had 7.46 per cent stake in the company but after filing the draft <keyword id="6354763" type="General" weightage="20" keywordseo="ipo" source="Orion">IPO</keyword> papers, his holding came down to 5.95 per cent stake. According to the DRHP, Maheshwari has offloaded 9.34 million shares during six months before the date of filing of the IPO papers. "At the price of Rs 487.44 apiece, this share transfer would be worth over Rs 455 crore," said the report. FirstCry was yet to respond to the report. Japanese investment giant <keyword id="19944037" type="General" weightage="20" keywordseo="softbank" source="keywords">SoftBank</keyword> has sold shares worth $310 million in FirstCry in two rounds, according to earlier reports. Late last month, FirstCry filed its DRHP with the market regulator SEBI, seeking to raise Rs 1,816 crore via fresh issue of shares. FirstCry's parent company BrainBees Solutions filed the DRHP which includes offer-for-sale (OFS) comprising 5.4 crore equity shares. FirstCry will use the IPO funds to set up modern retail stores and warehouses across the country. Meanwhile, the company reported Rs 5,632 crore revenue from operations in FY23, while its losses surged over six times to Rs 486 crore from Rs 79 crore in FY22.

IPO-bound FirstCry's CEO Supam Maheshwari offloads shares worth Rs 300 crore: Report

There is no respite for <keyword id="163404" type="General" weightage="20" keywordseo="softbank" source="Orion">SoftBank</keyword> <keyword id="45472" type="General" weightage="20" keywordseo="group" source="Orion">Group</keyword> in the ongoing global tech meltdown as the <keyword id="6373366" type="General" weightage="20" keywordseo="japanese" source="Orion">Japanese</keyword> <keyword id="6355120" type="General" weightage="20" keywordseo="investment" source="Orion">investment</keyword> giant on Tuesday reported a massive around $5.9 billion net loss in its third quarter that ended December 31. SoftBank said it lost around $5.5 billion in its signature Vision Funds alone in the October-December period, "reflecting declines in the share prices of a wide range of portfolio companies". The investment giant had lost $10 billion in the previous quarter (July-September 2022). According to the company, the fair value of its current late-stage portfolio is now more than $37 billion. On its earnings call with analysts, SoftBank said it's in the "defence mode". For the first time in decades, Masayoshi Son, founder and chief executive of SoftBank Group, skipped the analysts' call. According to <keyword id="105784" type="General" weightage="20" keywordseo="the-financial-times" source="Orion">The Financial Times</keyword>, at December-end, SoftBank said the fair value of the $100 billion Vision Fund I was down 4.4 per cent from a year earlier. The valuation for investments in Vision Fund II was down 6.2 per cent. SoftBank said it's taking a "cautious approach" to investing in the blockchain and crypto sector. Battered by heavy losses, SoftBank in September last year announced to lay off at least 30 per cent of employees at its loss-making Vision Fund. In August, SoftBank Group revealed plans to sell nearly 242 million American depository receipts (ADRs) of Chinese behemoth Alibaba, which will help it gain 4.6 trillion yen ($34 billion) in pre-tax gain from the sale. Investment bank Jefferies had predicted that SoftBank would need "$40-45 billion of cash this year" if it were to sustain. Son had warned unicorns and startups to prepare for a harsh and longer funding winter. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/k-satyanarayana-raju-appointed-as-new-md-ceo-of-canara-bank/articleshow/97691108.cms">K Satyanarayana Raju appointed as new MD &amp; CEO of Canara Bank</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sebi-returns-ipo-papers-of-fairfax-backed-go-digit-general-insurance-co-to-refile/articleshow/97691075.cms">Sebi returns IPO papers of Fairfax backed Go Digit General Insurance, co to refile</a>

SoftBank Group reports massive $5.9 billion net loss amid global tech meltdown

Beleaguered Japanese investment firm SoftBank has reportedly written off about $100 million it invested as part of its Vision Fund 2 in now <keyword id="15519454" type="General" weightage="20" keywordseo="bankrupt-crypto-exchange" source="Orion">bankrupt crypto exchange</keyword> <keyword id="2966084" type="General" weightage="20" keywordseo="ftx" source="Orion">FTX</keyword>. According to MarketWatch, the investment is now marked down to zero with SoftBank saying "it would not face a material markdown in the value of its stake". SoftBank had backed FTX after the startup raised $400 million in January, valuing it at $32 billion. SoftBank has now disclosed a $100 million venture capital investment in crypto broker FTX. Softbank CFO Yoshimitsu Goto was quoted as saying that $100 billion Vision Fund invested in FTX "as a minor stake in the company". "If any case of markdown but still that is very not material for us," Goto said during the company's second quarter (Q2) results. SoftBank has a history of pouring money in bad startups, like the $18.5 billion investment in WeWork. The Japanese VC firm also infused $500 million into digital mortgage lender better.com which laid off thousands of employees under its Indian-origin Co-founder and CEO Vishal Garg. Crypto exchange FTX has admitted that "unauthorised transactions" have drained hundreds of millions of dollars from its wallets, saying the company has moved many digital assets to a new "cold wallet custodian". FTX, which last week filed for bankruptcy in the US, did not reveal how much it lost in unauthorised transactions but reports claimed the amount could be as high as $600 million. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/retail-inflation-eases-to-6-7-in-october-from-7-4-in-september/articleshow/95512476.cms">Retail inflation eases to a 3-month low of 6.7% in October</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/markets-settle-lower-in-volatile-trade/articleshow/95508841.cms">Markets settle lower in volatile trade</a>

SoftBank writes off about $100 million invested in bankrupt crypto exchange FTX

<ul class="summary-list"><li>Tech conglomerate and investor SoftBank has lost $14.4 billion so far on WeWork.</li><li>The office-sharing firm filed for bankruptcy earlier this week.</li></ul>SoftBank has lost a cumulative $14.4 billion through <a target="_blank" href="https://www.businessinsider.com/weworks-nightmare-ipo">its disastrous bet on the now-bankrupt WeWork</a>, per the group's July-September earnings.The technology group posted a loss of $1.5 billion (¥234.4 billion) in the first half of 2023 relating to its stake in the office-sharing company, which <a target="_blank" href="https://www.businessinsider.com/wework-files-for-bankruptcy-chapter-11-commercial-real-estate-reckoning-2023-11?r=US&amp;IR=T">filed for Chapter 11 bankruptcy</a> earlier this week. Its total loss could go higher.SoftBank overall posted a loss of $6.2 billion (¥931.1 billion) for July to September, compared a profit of $20 billion the same period last year.It's a stark turnaround.Fuelled with conviction from SoftBank founder Masayoshi Son and billions in investment, WeWork sailed to <a target="_blank" href="https://www.businessinsider.com/wework-valuation-falls-47-billion-to-less-than-3-billion-2020-5">a colossal $47 billion valuation at its peak in 2019.</a> Another SoftBank executive predicted the firm <a target="_blank" href="https://www.businessinsider.com/wework-wants-to-raise-money-at-35-billion-valuation-softbank-says-2018-6?r=US&amp;IR=T">would reach $100 billion.</a>This bullishness and the relationship between Son and WeWork's founder and then-CEO Adam Neumann raised eyebrows.Neumann once said Son <a target="_blank" href="https://www.nytimes.com/2019/11/02/business/adam-neumann-wework-exit-package.html">"appreciated how he was crazy" but thought that he "needed to be crazier."</a>Neumann also claimed that Son likened him to <a target="_blank" href="https://www.businessinsider.com/inspiring-life-story-of-alibaba-founder-jack-ma-2017-2">Jack Ma</a>, the Chinese billionaire founder of Alibaba. Son himself became a billionaire thanks to betting on Ma and Alibaba.<div type="image" title="adam neumann" height="1335" width="2000" msid="105101240" hostid="261"></div>But Neumann failed to reach the equivalent heights. WeWork <a target="_blank" href="https://www.businessinsider.com/wework-ipo-fiasco-adam-neumann-explained-events-timeline-2019-9?r=US&amp;IR=T">struggled towards an IPO</a>, hampered by doubts over Neumann's direction and the core business model. Neumann stepped down and the firm did eventually go public via a SPAC merger. But pandemic lockdowns and a reversion to working from home weakened the business further.After <a target="_blank" href="https://investors.wework.com/news-and-events/press-releases/financial-releases-details/2023/WeWork-Takes-Strategic-Action-to-Significantly-Strengthen-Balance-Sheet-and-Further-Streamline-Real-Estate-Footprint/default.aspx">filing for Chapter 11 bankruptcy</a> on Monday, WeWork has entered a restructuring process with lenders.For Son, the WeWork saga has been a deeply embarrassing one. Even after WeWork's original botched IPO, the CEO was insistent that WeWork could be profitable during <a target="_blank" href="https://www.businessinsider.com/softbank-ceo-masayoshi-son-turnaround-presentation-slides-wework-2019-11?r=US&amp;IR=T#but-if-it-is-successful-heres-how-he-thinks-weworks-profits-will-look-10">a presentation</a>. At one point, he showed a <a target="_blank" href="https://i.insider.com/5dc3f6d73afd371ed2719073?width=700&amp;format=jpeg&amp;auto=webp">chart</a> depicting never-ending growth in gross profit over an undefined period of time.

You Searched For "Softbank investments" and got 13 results

SoftBank could invest $500 million in OpenAI, new report says

BI India Bureau

SoftBank is betting on AI and an IPO revival after swinging to a $7.7 billion profit

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SoftBank is Nvidia's first Blackwell chips customer. Here's what they're going to be used for.

Shubhangi Goel

OpenAI is just one piece of the puzzle in SoftBank's grand vision for AI

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Nvidia stock is undervalued because AI companies need to spend another $9 trillion to achieve superintelligence, Softbank CEO says

Matthew Fox

Saudi Arabia spent years investing in global tech firms. Its domestic AI push hopes they'll return the favor.

Hasan Chowdhury

Looks like Masayoshi Son's plan to go all in on AI is starting to pay off for SoftBank

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Abu Dhabi Investment Authority invests $500 mn in eyewear unicorn Lenskart

IANS

Softbank is planning to invest in OpenAI, report says, after Masayoshi Son said he uses ChatGPT every day

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IPO-bound FirstCry's CEO Supam Maheshwari offloads shares worth Rs 300 crore: Report

IANS

SoftBank Group reports massive $5.9 billion net loss amid global tech meltdown

IANS

SoftBank writes off about $100 million invested in bankrupt crypto exchange FTX

IANS

SoftBank has lost more than $14 billion by betting on WeWork

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