The group had previously curbed investment activity after heavy losses at Vision Fund
21 June 2023 - 16:21
bySam Nussey and Anton Bridge
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SoftBank CEO Masayoshi Son speaks during the company's annual general meeting in Tokyo, Japan, on June 21 2023. Picture: KIYOSHI OTA/BLOOMBERG
Tokyo — SoftBank Group CEO Masayoshi Son said on Wednesday that his tech investing conglomerate plans to shift its stance to “offence mode” amid excitement over advances in artificial intelligence (AI).
The group had retreated into a defensive stance, curbing investment activity as it booked heavy investment losses at its Vision Fund investing arm.
“The time has come to shift to offence mode,” Son told shareholders at the group’s AGM.
SoftBank reported a net loss of ¥970bn ($6.85bn) for the year ended March 31, cushioning losses at the Vision Fund unit by selling down its stake in Alibaba.
CFO Yoshimitsu Goto in May said that the group wants to ensure it does not miss investment opportunities, moderating its previous emphasis on defence.
SoftBank’s liquid assets, which include cash, cash equivalents and an undrawn commitment line, rose to ¥5.1-trillion at March-end from ¥2.9-trillion a year earlier.
Son, who has stepped back from public pronouncements in recent months, spent much of his presentation to a loyal retail investor base on Wednesday speaking about his enthusiasm for AI. Son said he asked ChatGPT, the AI-powered chatbot from start-up OpenAI, to write new adventures for Astro Boy, the classic manga series by Tezuka Osamu. “It creates as if it was human,” he said.
The billionaire said he has spent the past eight months creating inventions that he believes can be realised through the conglomerate’s chip designer, Arm. “We want to bring these inventions to fruition step by step. Arm is the key.”
SoftBank aims to list Arm on Nasdaq later in 2023 and is seeking to raise between $8bn and $10bn, Reuters has reported. Arm is in talks with companies including Intel about potential participation in the initial public offering.
SoftBank shares closed up 3.7% on Wednesday and have gained 22.9% in the year to date.
Observers debate the ability of Son, who suffered high-profile stumbles such as his backing for office-sharing firm WeWork, to pick winners in an economy expected to be increasingly powered by AI.
Son said he invested in companies that he thought would succeed in an AI-driven society and while there have been failures he believes enough of his portfolio companies will succeed.
“If you have one or two out of 100 smash hit, that will pay back everything,” Son said. “I think at least I have found more than several of them ... I think that’s enough.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SoftBank to shift to ‘offence mode’ as AI booms
The group had previously curbed investment activity after heavy losses at Vision Fund
Tokyo — SoftBank Group CEO Masayoshi Son said on Wednesday that his tech investing conglomerate plans to shift its stance to “offence mode” amid excitement over advances in artificial intelligence (AI).
The group had retreated into a defensive stance, curbing investment activity as it booked heavy investment losses at its Vision Fund investing arm.
“The time has come to shift to offence mode,” Son told shareholders at the group’s AGM.
SoftBank reported a net loss of ¥970bn ($6.85bn) for the year ended March 31, cushioning losses at the Vision Fund unit by selling down its stake in Alibaba.
CFO Yoshimitsu Goto in May said that the group wants to ensure it does not miss investment opportunities, moderating its previous emphasis on defence.
SoftBank’s liquid assets, which include cash, cash equivalents and an undrawn commitment line, rose to ¥5.1-trillion at March-end from ¥2.9-trillion a year earlier.
Son, who has stepped back from public pronouncements in recent months, spent much of his presentation to a loyal retail investor base on Wednesday speaking about his enthusiasm for AI. Son said he asked ChatGPT, the AI-powered chatbot from start-up OpenAI, to write new adventures for Astro Boy, the classic manga series by Tezuka Osamu. “It creates as if it was human,” he said.
The billionaire said he has spent the past eight months creating inventions that he believes can be realised through the conglomerate’s chip designer, Arm. “We want to bring these inventions to fruition step by step. Arm is the key.”
SoftBank aims to list Arm on Nasdaq later in 2023 and is seeking to raise between $8bn and $10bn, Reuters has reported. Arm is in talks with companies including Intel about potential participation in the initial public offering.
SoftBank shares closed up 3.7% on Wednesday and have gained 22.9% in the year to date.
Observers debate the ability of Son, who suffered high-profile stumbles such as his backing for office-sharing firm WeWork, to pick winners in an economy expected to be increasingly powered by AI.
Son said he invested in companies that he thought would succeed in an AI-driven society and while there have been failures he believes enough of his portfolio companies will succeed.
“If you have one or two out of 100 smash hit, that will pay back everything,” Son said. “I think at least I have found more than several of them ... I think that’s enough.”
Reuters
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