SoftBank seeks up to $100bn from Gulf investors for AI

The Financial Times reported on Oct. 9 that Son was seeking up to $100 billion from Gulf investors to expand SoftBank’s AI investments.[1][2] Son has held discussions about the potential fundraising with senior figures in recent weeks, including in the United Arab Emirates.[1] The report describes a fundraising effort under discussion, not a completed transaction: the talks may not succeed.[2] SoftBank did not respond to a request for comment on the reported discussions.[1] For professionals assessing the proposal, the distinction between a target and committed capital is material.

SoftBank would use proceeds to establish a fund that acquires companies and improves their operations with AI and other advanced technologies.[1] Its Roze robotics and physical AI business is expected to play a key role in the proposed process, according to the Financial Times.[2]

The Financial Times said OpenAI’s delayed IPO could hurt SoftBank’s plans for further AI investments.[2] It also reported that concerns about SoftBank’s exposure to the AI boom have led some investors to reassess Son’s ability to invest more in the technology.[2] SoftBank has also used borrowing partly backed by its Arm stake and its own resources to finance investments.[2]

Gulf nations have invested some of their wealth in AI as part of efforts to diversify economies dependent on energy, according to the Financial Times.[2] The paper described Abu Dhabi as one of the world’s biggest AI spenders, citing the AI-focused fund MGX and AI holding company G42.[2] Mubadala and Saudi Arabia’s Public Investment Fund invested in SoftBank’s first $100 billion Vision Fund in 2017.[2] That fund had generated about $29 billion in cumulative investment gains by the end of June, while Vision Fund 2 had generated $20.5 billion in gains, the Financial Times reported.[2]