SoftBank seeks $100 billion from Gulf investors for AI expansion

SoftBank Group Corp. founder Masayoshi Son is seeking to raise up to $100 billion from Gulf investors, including in the United Arab Emirates, to fund a massive expansion into artificial intelligence. The proposed fund would acquire companies and use AI and robotics, specifically leveraging SoftBank's physical AI business Roze, to optimize operations. This ambitious fundraising effort comes at a critical juncture, as a delayed OpenAI IPO and reports of lower-than-expected OpenAI revenues pressure SoftBank's existing tech portfolio.

Proposed fund for AI expansion

• ▪SoftBank Group Corp. founder Masayoshi Son has held discussions in recent weeks with senior figures in the United Arab Emirates to raise up to $100 billion from Gulf investors for artificial intelligence expansion
• ▪SoftBank Group Corp.'s robotics and physical artificial intelligence business, Roze, is expected to play a key role in a $100 billion Gulf investment fund proposed by SoftBank founder Masayoshi Son to acquire and improve companies
• ▪SoftBank Group Corp.'s proposed $100 billion Gulf fundraising would establish a fund to acquire companies and utilize artificial intelligence and advanced technology to improve their operations

Performance of previous Vision funds

• ▪SoftBank Group Corp.'s Vision Fund 2, which is primarily backed by SoftBank and holds the $65 billion OpenAI stake, has generated $20.5 billion in investment gains
• ▪Mubadala, a United Arab Emirates sovereign wealth fund, and Saudi Arabia's Public Investment Fund previously backed Masayoshi Son's ambitions by investing in SoftBank Group Corp.'s first Vision Fund in 2017
• ▪SoftBank Group Corp.'s first $100 billion Vision Fund, launched in 2017 with backing from Saudi Arabia's Public Investment Fund and Mubadala, generated about $29 billion in cumulative investment gains as of the end of June

SoftBank's exposure to OpenAI

• ▪A delay to OpenAI's anticipated initial public offering, alongside risks around artificial intelligence development, could negatively impact SoftBank Group Corp.'s plans for new technology investments
• ▪SoftBank Group Corp.'s share price fell 5 percent on October 9, 2026, following reports that OpenAI's annualized revenue was approximately $20 billion lower than previously signaled
• ▪SoftBank Group Corp. founder Masayoshi Son has made a series of major artificial intelligence investments, including a $65 billion investment in ChatGPT maker OpenAI

SoftBank's financial position

• ▪Last month, SoftBank Group Corp. completed the largest junk bond offering on record, raising more than $11 billion with investor yields reaching as high as 9.75 percent
• ▪SoftBank Group Corp.'s loan-to-value ratio stood at 13 percent at the end of June 2026, which is well below the 25 percent ceiling targeted during normal operations

Debatable claims

• ▪Replacing human labor with AI to optimize acquired companies does more harm than good
• ▪SoftBank's reliance on high-yield debt to fund AI investments is unsustainable
• ▪SoftBank's heavy concentration in AI investments poses an unacceptable risk to its stability
• ▪Investing in SoftBank's AI fund is an effective diversification strategy for Gulf nations