Softbank’s Potential Entry into AI Investments
Softbank, the Japanese investment management conglomerate, is reportedly considering investing in the field of artificial intelligence (AI), according to reports from the Financial Times. Sources familiar with the matter reveal that Softbank’s CEO Masayoshi Son is contemplating allocating “tens of billions of dollars” into AI-related investments. The company is also exploring a potential partnership with Microsoft-backed Openai.
A Shift in Investment Strategy
In Q2 2023, Softbank recorded a net loss of $3.3 billion but gained $1.1 billion from its Softbank Vision Fund, which is considered an indicator of the tech sector’s health. This, coupled with the IPO of Arm, has prompted Softbank to adopt a more active investment approach after a period of reduced activity in Q1.
The CFO of Softbank, Yoshimitsu Goto, previously stated that the conglomerate was gradually resuming investment activities and focusing on the AI trend by selectively evaluating opportunities.
Moving Away from Cryptocurrency
While expressing interest in AI opportunities, Softbank has suspended its investments in cryptocurrency startups since last year. Forbes reported that Softbank would likely remain on the sidelines for the last two quarters of 2022. The company has not invested in any cryptocurrency projects since June 2022 when its Vision Fund 2 co-led a funding round for Infstones.
Softbank had to write down its $100 million investment in FTX last year and only announced a partnership with game-focused blockchain project Oasys this year. However, it seems that Softbank may be considering acquiring Graphcore, a UK-based chipmaker specializing in AI computing.
Hot Take: Softbank Embraces AI Investments While Scaling Back on Crypto
Softbank, known for its strategic investments in various industries, is now turning its attention to AI. With a potential allocation of “tens of billions of dollars” into AI-related investments and a rumored partnership with Openai, Softbank aims to capitalize on the growing AI trend. This shift in focus comes as the company puts its cryptocurrency investments on hold and seeks opportunities in other sectors. While Softbank’s move away from crypto may disappoint some, it reflects the company’s adaptability and willingness to explore new avenues for growth. By investing in AI, Softbank positions itself at the forefront of technological advancements and demonstrates its commitment to staying ahead in the ever-changing investment landscape.
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