- SoftBank exited Alibaba, its cash cow, to bet hundreds of billions on AI instead.
- Son believes AI will surpass the mobile internet’s impact.
- But his Vision Fund must start generating hits, not just markdowns.
Masayoshi Son’s vision for SoftBank’s future
SoftBank founder Masayoshi Son generated an astounding $72 billion return backing Alibaba early but has now exited the Chinese e-commerce giant entirely to bet SoftBank’s future on leading the AI revolution.
Son is redirecting the conglomerate’s full weight behind chip designer Arm and the massive Vision Fund investing vehicles.
Arm already showed promise with a lucrative IPO last year, lifting Softbank’s profit after several losing quarters. But the Vision Funds have posted mixed results trying to identify tomorrow’s AI leaders amid broader startup funding struggles.
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Navigating SoftBank’s investment frontier
Still, Son believes wholeheartedly that AI promises an economic impact exceeding even the mobile internet, much like he foresaw for Alibaba decades ago.
Arm and Vision Fund now represent 70% of SoftBank’s asset value, up from just 21% in 2019 when Alibaba dominated its balance sheet.
If Son’s gambit proves right, SoftBank could own the picks and shovels providers for the AI boom. But replicating Alibaba-like returns requires the Vision Fund, in particular, to begin producing standout successes rather than markdowns.
For Son, who expects AI to surpass human intelligence, settling for less than leading this new revolution is likely not an option.
