After investing $65B in OpenAl, Japan's richest man seeks $100B for other AI projects

Masayoshi Son, Japan's wealthiest individual and founder of SoftBank, is seeking up to $100 billion in funding from Gulf investors to establish a new fund. This fund aims to acquire traditional businesses and modernize them using artificial intelligence (AI) and robotics, as reported by the Financial Times. SoftBank is currently facing market scrutiny due to its $65 billion investment in OpenAI, particularly because of delays in the AI startup's anticipated IPO.

Unlike SoftBank's previous focus on early-stage tech ventures, this new fund will concentrate on buyout strategies for established, non-tech firms that have fallen behind in automation. SoftBank will utilize AI and physical robotics to enhance these companies' efficiency and overall value. Son has been engaging influential sovereign investors in the Middle East, such as those from the United Arab Emirates, to gauge support for this approach.

The fund's core strategy involves taking controlling stakes in companies ready for modernization, deploying automated intelligence tools to improve operations, and capitalizing on the resulting valuation increase. While the establishment and capital commitments of the fund are not guaranteed, Son's expertise in securing regional sovereign investments, including from Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala, suggests strong potential.

SoftBank's previous Vision Fund 1 generated $29 billion in investment gains, and Vision Fund 2, which includes the OpenAI position, has seen $20.5 billion in cumulative gains as of June. Son's aggressive AI expansion plans are further evidenced by his continued investment in OpenAI, despite the company's ongoing struggle to become profitable.