Masayoshi Son, Japan’s wealthiest investor and founder of SoftBank, is making a high-stakes bet on artificial intelligence with a $65 billion investment in OpenAI, the developer of ChatGPT. The investment is central to SoftBank’s AI strategy and comes as OpenAI prepares for an initial public offering (IPO) projected for 2027 with a potential valuation of $1 trillion. This IPO timeline is critical for SoftBank, which has taken on significant debt to finance its 13% stake in the company.
Son’s Vision Fund has a history of large investments in technology, having raised nearly $99 billion about a decade ago with backing from Gulf state investors. The fund propelled a period of rapid growth in Silicon Valley startups but has faced setbacks amid market corrections and the COVID-19 pandemic. Recent market volatility in chip-related stocks and concerns over the sustainability of AI-driven revenue growth have compounded uncertainty around SoftBank’s ambitious AI plans.
Industry concerns have emerged about inflated valuations and speculative investments in the AI sector. Broadcom CEO Hock Tan recently criticized some investors as uninformed speculators who set unrealistic expectations. These tensions come at a time when the International Monetary Fund identified a potential "AI crash" as a key global economic risk alongside government debt and cyberattacks.
Son, who has been a vocal advocate for AI for more than 25 years, argues that artificial intelligence will transform sectors ranging from medicine to industry. He envisions "super-intelligence" contributing approximately 20% of global GDP by 2040, though he acknowledges potential risks if this power falls into the wrong hands. SoftBank’s AI approach focuses on four areas: semiconductor chips (through holdings such as Arm, Graphcore, and Ampere), large language models (with OpenAI), data center infrastructure and energy (via the Stargate venture with Oracle and OpenAI), and robotics, including the acquisition of ABB’s robotics division.
Despite SoftBank’s current dependence on OpenAI, Son’s initial engagement with the company was delayed, with Microsoft taking the lead as the primary investor. During the initial Vision Fund phase, Son had concentrated on tech-enabled firms rather than core AI model builders. The launch of ChatGPT in late 2022 initially caught SoftBank off-guard, with the company focused on reducing debt at the time. Since then, Son has reasserted his presence, deepening ties with OpenAI’s founder Sam Altman and making a pivotal $500 million investment.
SoftBank’s financial structure around OpenAI remains complex, relying on debt backed by the rising valuation of its AI investments. Nvidia, a leading chipmaker, has played a significant role in supporting OpenAI by investing in customers, lending credit, and financing data centers critical to AI operations. Nvidia, however, recently experienced a substantial market correction that reflects broader investor caution.
In parallel, SoftBank is pursuing a $100 billion fundraising initiative targeting Gulf investors to fuel its AI ambitions and related ventures, such as SB Energy. SB Energy’s principal asset is a large data center in Ohio, leased to OpenAI and supported by Nvidia, expected to generate substantial revenue over the next two decades. While some insiders downplay the immediate significance of the $100 billion target, it highlights Son’s penchant for bold, large-scale projects.
Not all investors are confident, viewing Son as a momentum-driven investor prone to chasing hype around charismatic founders. Nonetheless, supporters highlight his long-standing techno-optimism and strategic vision, which have repeatedly anticipated transformative technological shifts despite occasional missteps.
Financial markets increasingly demand clearer evidence that AI ventures can translate their potential into reliable revenue and profits. As billions of dollars remain at stake, SoftBank and Son face mounting pressure to validate their AI investments amid a shifting economic landscape.