SoftBank's Son seeks up to $100 billion from Gulf investors
SoftBank chief Masayoshi Son is seeking up to $100 billion from Gulf investors for a new fund that would buy companies and run them with AI, the Financial Times reported Friday. The push matters because SoftBank is one of OpenAI's biggest backers. Its shares fell as much as 7.3% in Tokyo after a report on OpenAI's revenue.
SoftBank Group founder Masayoshi Son is trying to raise as much as $100 billion from investors in the Persian Gulf, the Financial Times reported Friday, citing people familiar with the matter. Son has held talks in recent weeks with senior figures, including in the United Arab Emirates, Reuters reported. SoftBank did not respond to a request for comment, and Reuters could not immediately confirm the report.
The money would fund a new vehicle that buys companies and then improves how they run using artificial intelligence and other technology. SoftBank's robotics unit, Roze, is expected to play a key role, BigGo Finance reported. Sources cautioned that the talks are early and may not produce a deal.
Son has done this before. In 2017, Abu Dhabi's Mubadala and Saudi Arabia's Public Investment Fund backed SoftBank's first Vision Fund, which raised $100 billion. Gulf states have since poured oil wealth into AI to diversify their economies.
The news landed on a rough day for SoftBank stock. Its Tokyo shares fell as much as 7.3% on Friday, Investing.com reported, after a Financial Times report that OpenAI's yearly revenue pace was about $50 billion at the end of September. That was well below earlier figures.
SoftBank is deeply tied to OpenAI. It completed a further $10 billion investment on Oct. 1, bringing its total to $64.6 billion and its stake to about 13%, Investing.com reported. Last month, SoftBank also raised $11.1 billion in the largest high-yield bond sale in the world to help pay for that bet, Reuters reported.
Some analysts see risk in that concentration. One Asia-based analyst told BigGo that a sharp drop in OpenAI's value could cause a fast chain reaction across SoftBank's holdings. SoftBank stock has fallen more than 30% from its June peak, though it is still up for the year.
What we know: The FT reports Son is seeking up to $100 billion from Gulf investors for an AI buyout fund.
What we don't: Which Gulf investors will commit, and how much.
Where outlets agree Reuters and BigGo Finance both report that, according to the Financial Times, Son has held talks with senior Gulf figures, including in the UAE, about raising up to $100 billion.
Where they differ Investing.com says SoftBank shares fell as much as 7.3% after the OpenAI revenue report, while BigGo Finance says the news sent the stock down 5% in a single day.