SoftBank Group Corp. Chief Executive Masayoshi Son has indicated that the company, one of Japan’s largest telecommunications providers, plans to ramp up its investments in artificial intelligence.

Son, who founded SoftBank in 1981, detailed the company’s plans during its annual shareholder meeting today. He reportedly told investors that “we would like to be [in] the leading position for the AI revolution.”

Son initially founded SoftBank as a software distributor. In the decades following its launch, the company established itself as one of Japan’s largest internet providers. It also expanded into a range of other market segments.

SoftBank reached another milestone in 2017 when it launched the Vision Fund, a $100 billion investment vehicle focused on backing tech startups. The company established a second Vision Fund in July 2019. Son disclosed today that the telecommunications giant has backed about 500 startups to date.

In May 2022, SoftBank disclosed that its Vision Fund segment lost $27.4 billion during the preceding fiscal year. At the time, Son stated that the company will shift to a “defense” mode in order to address the headwinds. He said the initiative would see SoftBank slow startup investments and adopt “stricter” criteria for determining which companies to back.

“Now, the time has come to shift to offense mode,” Son told investors during today’s shareholder meeting. “We have done enough being on the defensive.” The executive indicated SoftBank’s new strategy will place a particular emphasis on AI.

The move is not entirely unexpected. In May, SoftBank Chief Financial Officer Yoshimitsu Goto reportedly hinted that the company “would not miss opportunities to invest” in technologies such as advanced AI systems. 

Son said today that the decision to adopt a more active business strategy is connected to the $35.3 billion in cash on hand SoftBank has accumulated over the past few years. It did so partly by selling stakes in tech companies. SoftBank offloaded its stake in Uber Technologies Inc. last year and, more recently, reportedly sold $7.2 billion worth of Alibaba Group Holding Ltd. shares.

During the investor meeting, Son hinted Arm Ltd. will play an important role in SoftBank’s plans. The company bought Arm for $32 billion in 2016 and is currently working to take it public. In April, it was reported that SoftBank plans to list the chipmaker’s shares on the Nasdaq later this year with the goal of raising $8 billion to $10 billion.

“By using Arm’s position and combining it with my ideas, there will be an amazing opportunity,” Son told investors. 

Photo: MIKI Yoshihito/Flickr