SoftBank Founder Seeks Up to $100 Billion for New Fund

    SoftBank founder Masayoshi Son is seeking to raise up to $100 billion (approximately 170 billion manats) from Gulf investors for a new fund. The fund will acquire existing companies. Artificial intelligence and robotics technologies will then be integrated into their operations. The goal is to improve these companies’ operations and increase their value.    In recent weeks, Masayoshi Son has spoken with prominent investors, including senior officials from the United Arab Emirates. He wants to acquire companies that do not yet use artificial intelligence and robotics technologies. Roze, SoftBank’s physical AI and robotics division, could play a key role in these changes. Son plans to list Roze’s shares at a high valuation in the future. However, it is not yet clear whether the fund will finance only company acquisitions or also Roze’s development.    SoftBank has already allocated approximately $65 billion (approximately 110.5 billion manats) to OpenAI. At the same time, OpenAI’s initial public offering has been delayed, and the company is not yet highly profitable. Therefore, SoftBank’s financial position depends heavily on OpenAI’s market value. The Japanese company has financed its investments with its own funds, external capital and loans secured in part by Arm shares.    SoftBank has worked with Gulf funds before. Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala fund joined the $100 billion Vision Fund established in 2017. The first fund has generated approximately $29 billion (approximately 49.3 billion manats) in investment returns to date. The second fund, financed primarily by SoftBank, had generated $20.5 billion (approximately 34.9 billion manats) in returns through June. Abu Dhabi is also increasing its artificial intelligence investments through MGX and G42.    Last month, SoftBank raised more than $11 billion (more than 18.7 billion manats) through a record issuance of high-risk bonds. The bonds’ yield reached 9.75 percent, indicating that the company is borrowing at a high cost. At the end of June, the company’s net asset value was $456.57 billion (approximately 776.2 billion manats). Its loan-to-asset ratio is 13 percent, well below the 25 percent limit the company has set for its ordinary operations.    A large portion of SoftBank’s assets is tied to technology companies, including Arm and OpenAI. If the value of these assets declines, its loan-to-asset ratio could reach a concerning level even if the company does not take on new debt. Masayoshi Son’s previous investments include the successful Alibaba investment and WeWork, which went bankrupt in 2023. However, there is still no guarantee that the new fund will be established or that the necessary financing will be raised.